Brady: Tax cuts, credits will boost Illinois economy

Brady: Tax cuts, credits will boost Illinois economy

CHAMPAIGN – Republican gubernatorial candidate Bill Brady wants to enact a package of tax breaks, tax credits and reforms to help improve the Illinois business economy and boost employment.

Among his ideas: repealing the sales tax on gasoline purchases, eliminating the $250 million a year state inheritance tax and offering a two-year, $3,750 tax credit for each new job created.

"Our governor and our government fails to realize the impact government has on business in this state and the effect that it's harder for Illinois businesses to survive in these challenging times than businesses in other states," Brady said.

The candidate made his remarks at HL Precision Machining in northwest Champaign, a plant that employs 42 people, said owner Steve Hillard. Brady is on a tour of manufacturing facilities following his endorsement Monday by the Illinois Manufacturers' Association.

Meanwhile, the GOP gubernatorial contender appeared to back away from what had been a centerpiece of his campaign: a 10 percent across-the-board cut in state spending.

"It's a mathematical equation that we have to reduce at least a dime in every dollar of state spending. But I'll hire real professionals to examine the audit that we will provide and then reprioritize where we're going to spend. Every dollar will be examined. Some programs likely will go by the wayside. Some will be expanded. Some will be reduced."

Brady's remarks Tuesday were at odds with comments he made at least twice in Champaign County before the February gubernatorial primary election.

Last December he said in Savoy, "I have called for a 10 percent cut across the board in every area of state government. We've got to rein in government spending."

He repeated that theme at a GOP candidates debate on Jan. 20.

"Everyone's going to have to do with 10 percent less," he said then.

Asked Tuesday if he was suggesting that some state programs would be cut 3 percent, some 20 percent and some eliminated, Brady gave a one-word answer:

"Likely."

And Brady appeared to suggest that he hoped most of the 10 percent in cuts could be made without hurting what he called "our highest priorities."

"The dime in every dollar ... much of it is hopeful that we can root it out by eliminating waste, fraud, abuse, corruption, mismanagement," he said.

Other details of Brady's business plan:

– The state inheritance tax, he said, "has forced many of our retiring baby boomers to leave" Illinois.

"When you tax them for the privilege of living out those years in this state they move and when they move they take their spending. And our economy suffers," Brady said.

– The 6.25 percent state sales tax should be removed from gasoline sales, he said.

"We're one of the few states in the nation that double taxes gasoline. On top of a motor fuel tax we impose a sales tax," he said. "Those taxes push purchases to neighboring states, but not just gas purchases but also bread and beverages and cigarettes."

– A tax credit for jobs would offer businesses $2,500 the first year and $1,250 the second year for each job created. Brady said the state would still come out ahead because each new job brings $4,200 to the state in its first year.

– He will commission a border community task force, led by his 28-year-old running mate, Jason Plummer, to "research what we need to make our border communities competitive."

– Evaluating fees and other costs on Illinois business "in comparison to other states" on medical malpractice, workers' compensation and health care costs.

The cost of workers' compensation, he said, is twice as much in Illinois as in Indiana.

"It needs to be retooled and turned into a win-win, a win protecting injured workers, but also a win for employers, making it more affordable," Brady said.

A spokeswoman for Gov. Pat Quinn, Brady's Democratic opponent, called the Republican's proposals "just the typical assortment of right-wing talking points."

"This recession was created by the reckless ideas of people without strategic vision," spokeswoman Mica Matsoff said. "Bill Brady's plan is to throw taxpayer money at the corporations and individuals that need it the least. That's how we got into this recession."

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William_D wrote on September 01, 2010 at 11:09 am

Another typical Republican politician trying to buy votes with our money and our state's bond rating. I wonder how long Brady's company would keep building those cheap vinyl dollhouses if he didn't pay his bills...oh...wait....

aantulov wrote on September 19, 2010 at 10:09 am

The role of a reporter is not to repeat like a parrot or employee what the job applicant has stated but to ask direct questions about a variety of topics that directly affect those paying his salary. This article DOES NOT do that.
State programs that help locally owned businesses and citizens set for cuts need to be identified in this piece.
Revenue to replace the money 250million in inhertance tax and gas tax needs to be addressed before it is cut. Who currently pays this tax totaling 250 million a year? Those with 1 billion to leave someone? Where are the facts to back up what this implies? Why not give a gas tax credit for taxi businesses giving those doing w/o a rentalcar, second car and a small IL business a tax break instead?
So this guy wants to give business $3730 for any job that might bring in $4200? What kind of jobs? Should it be a percentage of salary? Giving a credit like this for minimun wage just means I could fire my long term employee w/ insurance and hire three at minimum wage and make a profit from our tax dollars. IS THAT WHAT HE MEANS? IT SURE SOUNDS LIKE WHEN YOU DO THE MATH.

Andrea Antulov