“It is time for the lawmakers of this state to stand up to the status quo and mend our fractured tax code.” - State Senator Toi Hutchinson (D - Chicago Heights)

p-hutchinsonSPRINGFIELD - In an effort to ensure that corporations are paying their fair share in Illinois taxes, State Senator Toi Hutchinson (D-Chicago Heights) has filed legislation that aims to bring back much-needed cash flow to the state of Illinois by closing corporate tax loopholes.

“For far too long, tax code ambiguities have opened the door for corporations to accumulate huge profits without paying their fair share,” Sen. Hutchinson said. “It is time for the lawmakers of this state to stand up to the status quo and mend our fractured tax code.”

The legislation proposes eliminating three major loopholes that allow corporations to avoid state income taxes:
1. Tax foreign dividends. 
     a. Closing this loophole would generate $320 million annually
2. Encourage businesses to earn profits domestically as opposed to overseas. 
     a. Closing this loophole would generate $100 million annually
3. Repeal the non-combinational rule where corporations set up complex tax avoidance structures. 
     a. Closing this loophole would generate $25 million annually

“The increased revenue from closing these loopholes will allow our state to aid the most vulnerable among us, putting money towards education, improving our state’s infrastructure and paying down our pension obligations,” Hutchinson said. 

The legislation has been filed as SB 3401.  

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