HR0102 98TH GENERAL ASSEMBLY

HR0102 LRB098 07317 HLH 37380 r

HOUSE RESOLUTION

WHEREAS, We the members of the Illinois House of Representatives are bound by our constitutional oath to "provide for the health, safety and welfare of the people" of Illinois, and we recognize this can best be accomplished by fostering a robust and competitive business environment that attracts businesses, provides jobs, and creates economic opportunities for Illinois residents; and

WHEREAS, The December 2012 8.7% unemployment rate in Illinois is higher than every bordering state and is seventh highest in the country; and

WHEREAS, Illinois has approximately $9 billion in unpaid bills and an unfunded pension liability of over $96 billion; and

WHEREAS, The total corporate income tax rate in Illinois is 9.5%, the third highest in the nation, forcing Illinois to continually provide tax breaks to companies on a piecemeal basis; and

WHEREAS, Proposals presented for discussion and debate in the 97th and 98th General Assemblies would enact an Illinois Corporate Tax Disclosure and Responsibility Act; this Act would require all publicly traded corporations and their subsidiaries that are required to file an Illinois tax return to disclose extensive confidential tax return information, and would also require out-of-state corporations doing business in Illinois but not required to file an Illinois tax return to file a statement disclosing similar information or explanations of their tax status; and

WHEREAS, The federal government, after an extensive study by the Congressional Joint Committee on Taxation, abandoned similar proposals put forth on the federal level as unwise; and

WHEREAS, The disclosure requirements set forth in these proposals may violate confidentiality provisions of the Internal Revenue Code; and

WHEREAS, Illinois needs to transform itself into an attractive state to invest in and create jobs; and

WHEREAS, Taxpayers have an expectation of privacy in their income tax returns and the disclosure of detailed information about their business; and

WHEREAS, Disclosure of such information would provide businesses outside the State with an unfair economic advantage by having in-State business tax information publicly available; and

WHEREAS, The Illinois Department of Revenue has access to all Illinois tax returns that are filed and can already provide detailed aggregate information and data to legislators and the public without violating taxpayer confidentiality laws; and

WHEREAS, Illinois has an existing system whereby compliance with State tax Acts may be reviewed and enforced through the Illinois Department of Revenue; allowing for in-depth investigations and severe penalties for those in violation of those Acts; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-EIGHTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we oppose proposals intended to enact an Illinois Corporate Tax Disclosure and Responsibility Act or to take other action in breach of the principles of taxpayer privacy that have historically guided our State income tax system.