HR0549 95TH GENERAL ASSEMBLY

HR0549 LRB095 12536 BDD 37763 r

HOUSE RESOLUTION

WHEREAS, A payroll tax imposed on Illinois employers -- if the employers do not pay more than a defined percentage of total payroll on health benefits -- is burdensome on Illinois businesses; and

WHEREAS, A proposed multi-billion dollar tax increase on small, medium, and large businesses will hurt the Illinois economy and force businesses to eliminate jobs as they struggle to pay another tax; and

WHEREAS, Illinois businesses paid $29.1 billion in total State and local taxes in fiscal year 2006; and

WHEREAS, Illinois business taxes account for almost 50% of the total State and local taxes collected by all Illinois State and local governments in fiscal year 2006; and

WHEREAS, Illinois business taxes rose faster (37.6%) than non-business taxes (24.3%) during the same 4-year period (FY2002 through FY2006); and

WHEREAS, Illinois businesses pay a higher share of total State and local taxes than businesses in all of Illinois' neighboring states (Indiana, Kentucky, Missouri, Iowa, and Wisconsin); and

WHEREAS, The Tax Foundation has ranked Illinois' current business tax climate as 25th in the nation (1st being best, 50th being worst), with neighboring states of Indiana ranked 12th and Missouri ranked 15th; and

WHEREAS, Illinois has lost over 180,000 manufacturing jobs between 2000 and 2005, and an increased tax burden on struggling businesses will often force business closures and a loss of jobs; and

WHEREAS, The legality of the payroll tax is seriously in doubt because the federal Employee Retirement Income Security Act (ERISA), which would supersede any State laws, dictates how companies structure benefit plans so that companies doing business in multiple states do not have to grapple with a patchwork of local laws; and

WHEREAS, The Illinois General Assembly's recent passage of a bill imposing a $300 million tax increase on the business community will be an additional onerous burden; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that any multi-billion dollar payroll tax on Illinois businesses be rejected as onerous on small and large businesses alike; and be it further

RESOLVED, That the Illinois General Assembly should not impose additional taxes on Illinois businesses and, as an alternative, should adopt measures that promote economic development, job creation, and a regionally competitive climate; and be it further

RESOLVED, That a suitable copy of this resolution be presented to the Governor, Speaker of the House, President of the Senate, Minority Leader of the House, and Minority Leader of the Senate for consideration during current fiscal year 2008 budget negotiations.