We are strongly opposed to adopting a graduated income tax due to this being a potential bridge to higher taxes regardless of the rates stated in initial legislation like SB687. Removing the protection of a flat (predictable) tax rate can cause businesses to be less likely to invest in Illinois or expand their current operations here.
In addition, it would allow multiple taxation on same dollar earned and make certain industries vulnerable to additional tax rates as the need for additional tax dollars grow in future years. For small business owners, who currently report earnings through a schedule on their personal income taxes, could find themselves in a higher tax bracket paying significantly higher taxes which could deter innovative new businesses from launching in Illinois. Click here for more details.
As always, your chamber continues to keep their eye on policy that impacts your business!