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Next Session dates: House: April 17-20 & Senate: April 18-20
Gross receipts tax: IMA members encouraged to contact legislators
After three days of floor debate, members of the General Assembly headed home to begin their two-week spring recess. This is the last scheduled break for legislators before they arrive back in Springfield for the final six weeks of the scheduled legislative session. The IMA strongly encourages member companies to call, write, or schedule visits with members of the legislature to discuss the Gross Receipts Tax over the next two weeks.
The IMA has created a brief, one-page sheet of GRT talking points
(http://www.ima-net.org/grt/) that can be included in a letter or used in discussion. Simply link to the Prosperity Project
(http://www.bipac.net/lookup.asp?g=ima) on the IMA homepage to locate your legislator and their contact information.
In addition to contacting your legislator, make plans to attend Illinois Business Day on May 2. This one-day event will allow the business community to rally opposition to the gross receipts tax in Springfield. It is imperative that members of the business community show the Governor and legislators the negative impact of this $6 billion tax hike. Mark your calendar and plan to attend.
Research & Development tax credit passes Senate — part of IMA Capitol Battle Plan
Members of the Senate unanimously passed a cornerstone of the IMA's 2007 Capitol Battle Plan designed to make Illinois more competitive. SB 1180, sponsored by Sen. Terry Link (D-Vernon Hills) creates an alternative Research & Development tax credit in Illinois to assist companies that invest significant funds in Illinois. Under current law, companies are able to receive a tax credit only for expenditures that exceed the previous year's spending level. If SB 1180 is enacted into law, companies will calculate their three-year average R & D expenditure and will be able to claim a 12 percent tax credit for expenses that exceed 50 percent of the average. This will benefit companies that invest in R & D but do not have increasing expenditures.
SB 1180 passed by a vote of 56-0 and now moves to the House for consideration.
Revenue committee rebuffs political swipe at business community
Taking a blatant political swipe at the Illinois business community, Sen. Carol Ronen (D-Chicago) offered a last-minute amendment to SB 795 that would have required corporations, banks, and insurance companies to open their tax returns to the public. Ronen, the chief legislative ally of Governor Blagojevich in the Senate, and Director of Revenue Brian Hamer appeared together before the Senate Revenue Committee to discuss the measure that would require companies with more than $100 million in assets to file a copy of their latest tax return along with gross receipts, net income, tax incentives, employee count, and other confidential information with the Department of Revenue who would make it public through a variety of sources including the internet. Under current law, in Illinois and nearly every state in the country, it is illegal to reveal private and confidential tax information.
While claiming that this was a "sunshine" bill designed to help foster debate on public policy, it was very clear to all members of the Revenue Committee, both Democrats and Republicans, that this was nothing more than a political witch hunt by the Governor and one of his primary legislative partners. Fortunately, members of the Committee who recognized both the intent and impact of the amendment asked Sen. Ronen to hold her bill without a vote.
The IMA greatly appreciates the members of the Senate Revenue Committee for their leadership in protecting the proprietary tax information of Illinois companies.
House committee passes income tax increase
By a 12-3 vote, members of the House Education Appropriations Committee voted to pass legislation increasing both the corporate and individual income tax to raise billions of dollars for additional education spending. Sponsored by Rep. David Miller (D-Dolton), HB 750 will raise the individual income tax from three to five percent while increasing the corporate tax rate from 4.8 to 8 percent. In addition, the legislation expands the state's 6.25 percent sales tax to cover more than 40 services including car washes and lawn care. While allocating billions of dollars to education, the legislation also provides a new tax break to low-income Illinoisans and a small property tax rebate on the school portion of the property tax bill.
The IMA opposes HB 750 because it does nothing to address the spending problem in the state. The Governor and General Assembly have increased spending by more than $3.4 billion in the past four years and need to live within their means.
Child support liability shift to employers
Citing a need to crack down on parents who ignore their child support obligations, Rep. Cynthia Soto (D-Chicago) has amended legislation (HB 619) with language that could transfer the liability to an employer. Under the legislation, an employee or officer of a corporation could be personally liable for the child support if they willfully ignored their duty to collect or remit the money from an employee. The IMA strongly opposed this measure that could shift responsibility to employers without due process. Rep. Soto has agreed to work with the business community to try and tighten the language to penalize individuals who willfully try to subvert the law.
Speaker Madigan unveils new power plan
House Speaker Michael J. Madigan (D-Chicago) added a new twist to the ongoing debate regarding electric deregulation by offering legislation (HB 4091) that would create an Illinois Power Authority. The Authority would be a non-profit state agency, overseen by a five-member board appointed by the Governor, with the power to procure, generate and distribute power. Provided with generous quick take and eminent domain powers, the Authority would have the ability to build or acquire generation facilities with no oversight from the Illinois Commerce Commission.
According to a spokesman for Speaker Madigan, the proposal would "create yet another potential option for Illinois customers." The apparent intent of the legislation is to help spur competition in the energy industry. HB 4091 has been assigned to committee and could be considered when the General Assembly returns in April.
Senate passes statewide smoking ban
The full Senate this week approved SB 500 (Link, D-Vernon Hills) a bill that imposes a statewide smoking ban on all public areas and private workplaces. By a vote of 34-23, members of the Senate voted to ban smoking in places of employment, including within 15 feet of an entrance. The measure now moves to the House for consideration. If signed into law, smoking would be banned in all private workplaces on January 1, 2008.
From the IMA President and Board of Directors . . .
Join the IMA in our effort to defeat the Blagojevich tax plan
Gregory W. Baise, President and CEO of the Illinois Manufacturers' Association has a message for you describing the intensive efforts the IMA is about to undertake to defeat Governor Rod Blagojevich's ill-advised gross receipts and universal health care tax proposals. He is also asking for your help in achieving this goal. Log on to
http://www.ima-net.org/video/jointhefight.cfm
to hear the IMA's message, and then join us in the fight. Working together, we can defeat these proposals and move towards governmental policies that encourage the growth of state revenues by creating additional manufacturing jobs and expanding the tax base.
Are you dazed, confused and stunned about new utility rates? The IMA can help. Contact Mark Frech at 217-522-1240, ext. 3022, or e-mail
mfrech@ima-net.org.
Illinois Manufacturers' Association Business Day 2007
Help defeat the gross receipts tax and the payroll tax proposals
Wednesday - May 2, 2007 - President Abraham Lincoln Hotel - Springfield, Illinois -
Business Day offers the opportunity for you to meet with your elected officials to help drive home our message of job growth and prosperity. With your participation, legislators can more completely understand the impact of their actions on the employers of Illinois.
Schedule of Events
12:30–2:00 pm - Business Day Luncheon
Keynote Speaker: Neil Newhouse, Public Opinion Strategies (invited)
Neil Newhouse is a partner and co-founder of Public Opinion Strategies, a national political and public affairs survey research firm whose clients include leading political figures, Fortune 500 companies and major associations. For its work in the 2002 elections, Public Opinion Strategies won the "Pollster of the Year" Campaign Excellence Award from the American Association of Political Consultants. Neil has worked in the field of public opinion research for more than twenty years, has directed the research for thousands of individual projects, and has experience in every aspect of opinion research, including focus groups, "dial" groups, one-on-one interviews, and quantitative research.
2:00–3:30 pm - Breakout Sessions
1. TAXES — A billion here, and a billion there and soon you're talking real money. The General Assembly is considering a gross receipts tax that could cripple the business community and curtail future economic development in Illinois. Find out how you can protect your business from the tax man in this session.
2. HEALTH CARE — Affordability? Access? The Governor and legislature are looking at creating a universal health care system in Illinois. Stop by this seminar to see how it may impact an employer's ability to offer health care benefits to its employees and whether a payroll tax will be imposed on employers to pay for the program.
3. ENERGY — Are you in shock over the price of your electric bill? Attend this seminar and find out how your company can manage its costs in the new competitive marketplace.
3:30–5:00 pm - Lobby your Legislator
Make an appointment to meet with your state legislator at the State Capitol
5:30–8:30 pm - Annual Business Day Reception
Enjoy an evening with your colleagues under the tent at the IMA Springfield Headquarters.
2007 sponsors
Abbott Labs
Bowmark Consulting
Caterpillar, Inc.
Commonwealth Edison
Deere & Co.
Exelon Generation
Exxon Mobil
Illinois Manufacturing Extension Center
State Farm Insurance
Vedder Price, Jim Spizzo
HOTEL INFORMATION
A block of hotel rooms have been reserved for the night of May 2nd. The discounted room rate is $102 and you should mention the IMA when making your reservation. Call the hotel directly at 217-544-8800. The cut off date for reservations is Tuesday, April 3rd. Visit their web site:
http://www.presidentabrahamlincolnhotel.com. Register Today! Visit the IMA web site for additional information and to register:
http://www.ima-net.org.
Questions? Call Kimberly McNamara at 800-875-4462, ext. 2109 or email kmcnamara@ima-net.org
Other Springfield Highlights available online
