SBAC Advocacy Update: Graduated Income Tax Town Hall to be held in Orland Park
The first in a series of town halls regarding the proposed graduated income tax will take place Tuesday, September 17th, between 9:00-11:00 A.M, in conjunction with the Orland Park Chamber of Commerce. Our members will discuss the proposed amendment with state legislators and officials before this important vote arrives at the ballot.
The town hall will be at the Orland Park Civic Center, 14750 Ravine Avenue in Orland Park. This town hall is free to attend and will be conducted in a nonpartisan manner.
Some of the questions we have heard from our members include:
• How will the revenue associated with the proposed graduated income tax be spent?
• Will there be property tax relief provided in conjunction with a proposed graduated income tax?
• How will the graduated income tax help stabilize Illinois’ economy?
Our panel will include:
Illinois Department of Revenue Director Davis Harris
The SBAC strongly supports the Employer Participation in Repayment Act of 2019, bipartisan legislation to empower small businesses to compete for top talent and address the student debt crisis.
According to the personal finance website, Make Lemonade, over $1.5 trillion in student loan debt is owed by more than 44 million borrowers in the U.S. — an average of about $40,000 owed per student. Many college graduates, working entry level jobs, struggle to make their student debt payments.
Small businesses are also impacted by the whopping student debt owed by prospective employees.
While some businesses may offer job applicants assistance with their student loans, many smaller companies do not have the capacity to provide such a benefit. This makes it more difficult for smaller businesses to compete for talented professionals.
Over the past two decades, the internet has changed the way consumers communicate, access information, and participate in the economy. Just as consumer behavior is evolving, technology is creating new opportunities and challenges by changing the way businesses engage with customers.
Net neutrality is the principle that consumers who use the internet should be able to access the content and applications they want, without their internet service provider (ISP) (e.g., Comcast, AT&T, Verizon, etc.) blocking, slowing down, or redirecting internet traffic, or extracting rents by prioritizing some sites or applications over others.
For businesses that use the internet to reach, interact, and transact with customers, the presence of strong net neutrality rules ensures that businesses don’t have worry about a customer’s ISP blocking or slowing the customer access to the businesses’ site, favoring competing businesses or requiring businesses pay expensive fees to avoid degradation or slow page loads.
The SBAC is part of a nationwide coalition, spanning across industry, focused on maintaining a level playing field for small businesses on the internet. The FEC voted to repeal net neutrality rules in December, but the advocacy efforts continue to overturn the FEC’s decision.
On June 22, 2018, the 5-4 U.S. Supreme Court opinion in the South Dakota v. Wayfair, Inc. case, allowing states to collect sales tax on online transactions.
Prior to this ruling, local and small businesses in Illinois were at a financial disadvantage. Now states have the authority to compel online and catalog retailers, no matter where they are located, to collect sales tax at the time of a transaction – exactly like local retailers are already required to do. Additionally, this will create an estimated $200 million in additional annual revenue for Illinois without creating any new taxes.
The next step on this issue is passing federal legislation requiring states to opt in to similar sales and use tax standards. The SBAC supports The Marketplace Fairness Act and its companion legislation in the U.S. House of Representatives, The Remote Transaction Parity Act, to create uniformity for businesses subjected to these changes and ensure all avenues of commerce – online and brick and mortar – are treated fairly on sales tax collection.
According to the Small Business Administration, in 2018, Illinois small businesses employed 2.5 million people or 45.5% of the private workforce. Encouraging job growth to our state’s largest economic contributor is vital to ensure economic growth in the state. The Small Business Job Creation Tax Credit, allowed employers under 50 employees qualify for a tax credit for each new job created. Unfortunately, this program expired in 2016.
The SBAC strongly supports legislation to reauthorize $50 million for this tax credit. SB1232 received unanimous support on the subcommittee level and now goes before the full Revenue Committee for consideration.
Obtaining a license to do business in Illinois should not create unnecessary barriers for entrepreneurs or be an overly burdensome process. The number of businesses subjected to this state oversight has increased exponentially since the 1950s when licensing was limited to a small number of professions. Today, an Illinois state license is now required for hundreds of occupations, nearly one quarter of Illinois’ workforce. While public health and safety must come first, new licenses should not be created unless they are necessary to protect the safety and welfare of the public. New licenses that are established by the legislature should also be crafted in the least restrictive manner to achieve its objectives. Ultimately, we support a holistic approach to reform that includes: (1) stricter sunset reviews, taking into account economic impacts of licensing (2) creation of sunrise reviews for proposed occupational licenses (3) increase of vocational training in grade school public education (4) increased reciprocity for workers looking to relocated to Illinois and (5) criminal justice reform.
As a strong first step, during the 100th General Assembly, the SBAC supported HB5212, an IDFPR initiative know as the Sunrise Review Act. HB5212 sought to provide legislators with a process to receive information and analysis from independent parties regarding whether a new license is warranted, the reasons for the license, how it will impact the economy and how to craft necessary licenses in the least restrictive way to ensure it is effective. This legislation passed the Illinois House of Representatives on April 25, 2018. It was not brought up for consideration in the Senate.
During the 101st General Assembly, this SBAC-backed legislation was introduced as SB1756. On April 10th, this bill unanimously passed in the Senate by a vote of 55-0 with overwhelming bi-partisan support! The bill will now to go to House for consideration. Thank you to the bi-partisan effort of Sen. Bertino-Tarrant & Sen. Plummer for working with us in the Senate.
In 2015, legislation was signed into law requiring the Department of Commerce & Economic Opportunity to create and maintain a website to help businesses with permitting issues. The legislation, SB0659 filed by Sen. Julie Morrison received overwhelming unanimous support in both chambers and was signed by the Governor. Unfortunately, no funding was provided following the bill’s passage resulting in the end goal not being met. The SBAC is advocating for a small amount of funding so what is a good idea can be implemented and help new and emerging businesses in our state. We encourage the General Assembly to appropriate the proper funding for the portal to be established.
Since opening the Chicago Board of Trade in 1848, Illinois has been a leader in the financial industry ranking among the top cities in the world. As a result of our city’s deep history in the financial market we have leaders in the industry that call our state home. We also have one of leading startup communities in the United States. In order to stay competitive, we need to encourage and understand emerging industries. A regulatory sandbox is solution to give innovative financial products a way to test their services, under the close supervision of regulatory agencies, for a short period of time on a limited consumer base without going through rigorous process to be licensed first. We encourage legislators to continue to promote and encourage small businesses and entrepreneurs by establishing a regulatory sandbox.
These changes will play a key role in the shaping the political discourse and priorities on a federal, state and local level next year. However, we want to focus on one aspect that received little coverage: the massive amount of turnover in the Illinois General Assembly. Prior to the election, 32 House Members (15 Democrats, 17 Republicans) and 12 Senators (6 Democrats, 6 Republicans) retired, ran for a different office or lost their primary. An additional eight House incumbents and three Senate incumbents lost re-election, bringing the total turnover to 33% in the House and 25% in the Senate. For the total score count 29% of the districts in the General Assembly will have a new sitting legislator.
With so many new faces in the legislature, small business owners have the opportunity to work with and educate 40 newly elected officials on the priorities of small businesses. It is incumbent on us to reach out to call the new members and let them know about the SBAC and our priorities for small business. Below you can find information on all new appointments and recently elected officials.
Meet the New Faces of Springfield
Illinois Senate – 8th District (West Ridge, Lincolnwood, North Park, Morton Grove)
Priorities include: tax fairness, safe communities, education, minimum wage, healthcare, the environment, LGBTQ Rights, Women’s Rights College Affordability, Immigration, Anti-Hate.
Illinois Senate – 13th District (Hyde Park, Woodlawn, South Chicago, South Deering)
Appointment Unfulfilled. The seat is currently held by Senator Kwame Raoul (DEM) who successfully won the race for Illinois State Attorney General.
Illinois Senate – 21st District (Naperville, Wheaton, Carol Stream, West Chicago, Bloomingdale) Laura Ellman (DEM)
Priorities include: Clean up Springfield, Fiscal Responsibility & Good Government, Rebuilding our economy, K-12 Education, Higher Education, The Environment, Protecting our healthcare, Gun Violence & School Safety, Working for people with disabilities.
Priorities include: Taxes & Government Spending, Education, Gun Violence Prevention, Healthcare, Good Government & Leadership, the Environment.
Illinois Senate – 27th District (Palatine, Arlington Heights, Mt. Prospect, Rolling Meadows) Ann Gillespie (DEM)
Priorities Include: Solving Illinois’ Fiscal Crises, Public Education, Infrastructure Investment, Healthcare, Responsible Gun Regulation, Protecting Our Environment, Making Elections Fair, Strong Unions & a Living Wage Build the Middle Class, Retirement Security for our Civil Servants, Invest in our Seniors, The LGBTQ Community, Serving Those Who Served.
Illinois Senate – 32nd District (McHenry, Fox Lake, Woodstock, Spring Grove, Harvard) Craig Wilcox (REP) *Appointed in October 2018*
Priorities Include: Property Taxes, Population Loss, Pension Reform, Transparency.
Illinois Senate – 33rd District (Huntley, Hampshire, West Dundee, Huntley, St. Charles, Geneva) Donald DeWitte (REP) *Appointed in September 2018*
Illinois House – 42nd District (Wheaton, Carol Stream, Naperville) Amy Grant (REP)
Priorities Include: Advance the Reform of Fiscal Decision Making, Restore the Full Faith & Credit of Illinois, Dedicate New & Improved Revenue Streams to Debt Reduction, Restore Our Standing as Leaders in Education from Preschool to Higher Learning, Higher Wages & More Tax Paying Employees, Reduce Regulations on Job Creators, Provide Incentives for Higher Learning Institutions, Expand Trade Education & Opportunities for Students.
Illinois House – 47th District (Elmhurst, Hinsdale, Westmont, Oakbrook, Western Springs) Deanne Mazzochi (REP) *Appointed in July 2018*
Priorities Include: Repeal the 32% Madigan Tax Increase, Rein in Government Spending & Balance the Budget, Stand up for our 2nd Amendment Rights, Replace Madigan by Enacting Term Limits, Reduce Taxes & Empower Businesses to Create Jobs, Fight for the Life of the Unborn.
Illinois House – 109th District (Carmi, Mt. Camel, Fairfield, Flora, Olney, Lawsonville, Newton) Darren Bailey (REP)
Priorities Include: Abortion, 2nd Amendment Rights, Education, Jobs, Transparency & Term Limits, Property Taxes, Income Taxes.
Illinois House – 110th District (Robinson, Marshall, Casey, Charleston, Mattoon) Chris Miller (REP)
Priorities Include: Term Limits First, Business First, Family First, Constitution First.
Illinois house – 111th District (Godfrey, Bethalto, Alton, East Alton, Wood River) Monica Bristow (DEM) *Appointed in 2017*
Priorities Include: Grow Number of Jobs, Secure Our Current Jobs, Mental Health Awareness.
Illinois House – 118th District (McLeansboro, Eldorado, Harrisburg, Carbondale, Metropolis) Patrick Windhorst (REP)
Priorities Include: Lower Taxes, More Jobs, Less Spending, Term Limits, Conservative Values, School Funding.
The SBAC partnered with a robust coalition in support of SB2436, to amend the archaic Liquor Control Act of 1934 which prohibited the sale of alcohol within 100 feet of a religious institution, school, hospital or military station. Until the passage of this bill, the only recourse for a small business owner to receive an exemption was for a bill to be drafted, passed by the General Assembly and signed into law. The outdated statute was an obstacle to the growth of local economies, often in areas where new opportunities are needed most. SB2436 reforms this process so that rather than painting all communities with a single brush, local leaders can determine the restrictions that best serve their businesses and residents.