On March 10th, International Women’s Day, Representative Will Guzzardi introduced HB4004 to raise $924 million by closing nine corporate tax loopholes. Illinois’ backlog of unpaid bills has grown to $11 billion and the general fund’s deficit is now $9.5 billion. Budget cuts have a disproportionate impact on women — denying them opportunity to go to college, failing to support female caregivers, robbing female seniors of independence and dignity, endangering women’s safety, and increasing poverty and homelessness among women.
“It’s a moral failure that we’re letting the neediest among us suffer while huge corporations game the system to boost their profits,” said Rep. Guzzardi. “The nearly $1 billion dollars of loopholes we can close will take taxpayer money back from the corporate special interests and invest it where it belongs: in the people of Illinois, in our schools and roads and neighborhoods.”
The bill proposes:
- Taxing profits hidden in offshore tax havens.
- Updating the vendor discount to match Kentucky’s model. Illinois loses the most of any state in the country on this antiquated law that compensates corporations for calculating the sales tax they owe the state. Walmart alone saves $8 million/year from this loophole. The proposed model would protect small business by capping the discount.
- Taxing profits from offshore oil drilling.
- Decoupling from the Federal Domestic Productions Deduction. This is a federal deduction that rewards corporations for expanding their production anywhere in the United States. It does nothing to encourage investment in Illinois specifically.
- The remaining loopholes can be found here.