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| 1 | HOUSE RESOLUTION
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| 2 | WHEREAS, A payroll tax imposed on Illinois employers -- if | ||||||
| 3 | the employers do not pay more than a defined percentage of | ||||||
| 4 | total payroll on health benefits -- is burdensome on Illinois | ||||||
| 5 | businesses; and
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| 6 | WHEREAS, A proposed multi-billion dollar tax increase on | ||||||
| 7 | small, medium, and large businesses will hurt the Illinois | ||||||
| 8 | economy and force businesses to eliminate jobs as they struggle | ||||||
| 9 | to pay another tax; and
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| 10 | WHEREAS, Illinois businesses paid $29.1 billion in total | ||||||
| 11 | State and local taxes in fiscal year 2006; and
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| 12 | WHEREAS, Illinois business taxes account for almost 50% of | ||||||
| 13 | the total State and local taxes collected by all Illinois State | ||||||
| 14 | and local governments in fiscal year 2006; and
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| 15 | WHEREAS, Illinois business taxes rose faster (37.6%) than | ||||||
| 16 | non-business taxes (24.3%) during the same 4-year period | ||||||
| 17 | (FY2002 through FY2006); and
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| 18 | WHEREAS, Illinois businesses pay a higher share of total | ||||||
| 19 | State and local taxes than businesses in all of Illinois' | ||||||
| 20 | neighboring states (Indiana, Kentucky, Missouri, Iowa, and | ||||||
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| 1 | Wisconsin); and
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| 2 | WHEREAS, The Tax Foundation has ranked Illinois' current | ||||||
| 3 | business tax climate as 25th in the nation (1st being best, | ||||||
| 4 | 50th being worst), with neighboring states of Indiana ranked | ||||||
| 5 | 12th and Missouri ranked 15th; and | ||||||
| 6 | WHEREAS, Illinois has lost over 180,000 manufacturing jobs | ||||||
| 7 | between 2000 and 2005, and an increased tax burden on | ||||||
| 8 | struggling businesses will often force business closures and a | ||||||
| 9 | loss of jobs; and | ||||||
| 10 | WHEREAS, The legality of the payroll tax is seriously in | ||||||
| 11 | doubt because the federal Employee Retirement Income Security | ||||||
| 12 | Act (ERISA), which would supersede any State laws, dictates how | ||||||
| 13 | companies structure benefit plans so that companies doing | ||||||
| 14 | business in multiple states do not have to grapple with a | ||||||
| 15 | patchwork of local laws; and | ||||||
| 16 | WHEREAS, The Illinois General Assembly's recent passage of | ||||||
| 17 | a bill imposing a $300 million tax increase on the business | ||||||
| 18 | community will be an additional onerous burden; therefore, be | ||||||
| 19 | it | ||||||
| 20 | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | ||||||
| 21 | NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that | ||||||
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| 1 | any multi-billion dollar payroll tax on Illinois businesses be | ||||||
| 2 | rejected as onerous on small and large businesses alike; and be | ||||||
| 3 | it further
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| 4 | RESOLVED, That the Illinois General Assembly should not | ||||||
| 5 | impose additional taxes on Illinois businesses and, as an | ||||||
| 6 | alternative, should adopt measures that promote economic | ||||||
| 7 | development, job creation, and a regionally competitive | ||||||
| 8 | climate; and be it further
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| 9 | RESOLVED, That a suitable copy of this resolution be | ||||||
| 10 | presented to the Governor, Speaker of the House, President of | ||||||
| 11 | the Senate, Minority Leader of the House, and Minority Leader | ||||||
| 12 | of the Senate for consideration during current fiscal year 2008 | ||||||
| 13 | budget negotiations.
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