Lt. Gov. Quinn rolls out Taxpayer Action Amendment to close business loopholes, provide tax relief to hard-working people who need it most

SPRINGFIELD - Vowing to bring fairness to Illinois' tax code while giving everyday people the tax relief they deserve, Lt. Gov. Pat Quinn unveiled his Taxpayer Action Amendment at a news conference Thursday in the State Capitol in Springfield.

 "We need to reform our state tax system in a fair and affordable manner, in a way that makes the tax code more progressive while providing relief to the people who need it most," Quinn said. "If we close the billions in business loopholes currently on the books, we can increase funding for education and health care while helping people who are living paycheck to paycheck."

Under Quinn's proposed Taxpayer Action Amendment, the Illinois General Assembly would create a board of review to identify lucrative corporate tax loopholes and recommend ways to close them. The new board - a bipartisan panel to be named by the legislative leadership - would then present their full set of recommendations to the Illinois House and Senate for an up-or-down vote. If the Legislature did not vote against the recommendations, the loophole closures would become law.

Quinn said his plan would target major corporations that currently avoid paying any corporate income tax, thanks to loopholes designed by highly paid lawyers, accountants, and lobbyists. However, the Taxpayer Action Amendment would spare small- to medium-sized Illinois businesses that now contribute their fair share to the state's coffers.

"I've been down here at the state Capitol talking about unfair corporate tax loopholes for years and years," Quinn said. "But we need to make sure we don't solve that problem at the expense of the small- to medium-sized businesses that are the backbone of our state's economy."

Quinn estimated that the loophole closures could increase state revenues by $1 to $2 billion.

"The revenue this plan would generate must be divided evenly between health care, education, and tax relief for the people who need it most," Quinn said. "The State of Illinois has one of the most regressive, unfair tax codes in the nation. I believe we have a moral imperative to give hardworking people of modest means the tax relief they deserve."

Quinn said his tax relief proposals would include increases in the state's Earned Income Tax Credit and the personal exemption for state income tax, along with property tax relief for owner-occupied residences.

"We need to change the tax code to force big corporations to pay for the many state services that benefit them, but taxes should be based on the ability to pay," Quinn said.  "The Taxpayer Action Amendment will bring in new revenues without punishing those who already pay their fair share."