For Immediate Release
June 14, 2004
Illinois
– Governor Stands Firm on Opposition to Increased Taxes - Joins Other
States in Vowing to Close Tax Loopholes.
The
Governor of Illinois reaffirmed his conviction to oppose an increase to
income and sales taxes, while closing certain tax loopholes for
businesses.
Facing
a budget deficit in excess of $1.7 billion, the Governor submitted a
budget proposal that would streamline and reform state government
functions.
While
the Governor focused on eliminating certain unfair loopholes in the law,
he vowed to keep programs in tact.
Examples
of some eliminations:
Þ
Allowing
corporations doing business in the state, but headquartered or
incorporated elsewhere, to avoid paying Illinois income taxes when selling
their assets;
Þ
Allowing companies
to shuffle profits from one division to another within the same company to
avoid paying taxes;
Þ
Allowing
telecommunication companies to contest that they should not pay income
taxes on calls made from and to a party in Illinois if the call is relayed
thorough equipment in another state;
Þ
Allowing
corporations doing business in Illinois to hide their income in places
such as Bermuda or the Cayman Islands to avoid paying taxes;
The Governor rejected certain proposals that would balance the budget. Some of those proposal were:
Þ
Increasing the
utility tax, real estate tax, transfer tax, and hotel tax;
Þ
Eliminating the
retailer’s discount for timely sales tax remittance;
Þ
Eliminating the
sales tax exemption for purchases of machinery and equipment;
Þ
Eliminating the
income tax deduction for business meals and entertainment.
If you would like additional
information on this topic or other related questions,
please contact Scott Cione at (708) 352-3985. E-mail scione@thesaltgroup.com
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