Illinois Department of Revenue Estimates SB 1719 Would Raise $1.7 Billion for State in First 12 Months
Chicago, IL – On Tuesday, May 23rd, the Illinois Senate voted 34-24-1 in favor of passing SB 1719. The legislation places a privilege tax on Hedge Fund and Private Equity Managers like Bruce Rauner and Ken Griffin who exploit a federal tax loophole to get a lower tax rate than that paid by many working Americans.
Amisha Patel, Executive Director of Grassroots Collaborative, explained, “This is great news for Illinois residents that have been languishing under an extended budget impasse. Illinois needs new revenue. SB 1719 generates significant revenue – raising it from those who have profited for years off of a rigged tax system, instead of asking for more sacrifices from our most vulnerable residents.”
“This is an important step in creating the kind of state we want to live in,” stated Senator Daniel Biss (D-Evanston), lead sponsor of SB 1719. “We have a small group of very wealthy individuals using an archaic loophole to avoid paying their share, at the expense of other taxpayers and vital social services. Illinois now has an opportunity to right this wrong, to move towards greater fairness, and raise $1.7 billion in new annual revenue that our state desperately needs.”
Representative Welch (D-Hillside), lead sponsor of the legislation in the Illinois House added, “I believe that to those whom much is given much is required- and so far Illinois Hedge Funds have given very little and taken an awful lot. At a time when our seniors are being asked to go without, our public universities are at risk, and shelters are being shut down we can not afford to wait. I’m looking forward to working with my colleagues in the House to quickly pass this legislation and get it on the Governor’s desk.”
“The people that make the most of this loophole will not change their line of work if it is eliminated. They make plenty of money with or without it, and the tax advantage that they receive due to this rule is not the reason they are in it. They are in the business because they make a ton of money doing it. And that is OK. But the absurd advantage they receive due to this rule is just that; absurd! So simply change the law so that it treats them the same way that John Q Public is treated…or myself, I might add, who paid in last year at a 38% rate (happily so) on a pretty good number,” concluded Stephen Prince with the Patriotic Millionaires, CEO of Sterling Card Solutions.