SEIU Local 73, as a proud member of the Responsible Budget Coalition (RBC), applauds the Illinois legislature for passing a state budget that closes corporate tax loopholes. Closing these corporate tax loopholes will generate the revenue needed to close this year’s budget deficit and will provide revenue for public services in the years to come.
“The people of Illinois have suffered under the pandemic,” said Dian Palmer, President of SEIU Local 73. “From death, to unemployment, the last thing they needed was cuts to services.”
To ensure most of these vital public services would not be cut, the legislature closed these corporate tax loopholes: Rolling back the Federal Tax Cuts and Jobs Act (TCJA) of 2017 accelerated depreciation deduction; Capping corporate net operating loss deductions at $100,000 for the next three years; Rolling back the TCJA foreign-source dividend deduction; and freezing the corporate franchise tax. Closing these corporate tax loopholes will generate more than $655 million in revenue each year. These are not new ideas or untried approaches; many other states have already wisely closed these loopholes, and many legislative caucuses have long recommended doing so here as well.
“These corporate tax loopholes were costing our state money,” said Palmer. “Money that is better served going to the people who need the services our members provide.”
Corporations had ample opportunity to come before the General Assembly and attempt to justify these loopholes, but they failed to do so.
RBC will continue to work with legislative leaders to ensure Illinois has the continued revenue to meet the needs of its people.
RBC consists of nonprofit, advocacy, labor, and community organizations representing and serving millions of Illinois families, children and seniors in every part of our state.