Letter to the Editor | Clearing up facts on doing business

Letter to the Editor | Clearing up facts on doing business

Your editorial "Illinois is running in place" indicates that Chief Executive magazine perceives that Illinois is rated as one of the worst places in the U.S. to do business.

Those chief executives may want to reconsider their position or change their perception.

True, Texas does not have an income or corporate tax. Instead, it has a gross-receipts tax. The News-Gazette editorialized against that type of tax for Illinois in 2007 when it was proposed: news-gazette.com/opinion/editorials/2007-04-24/gross-receipts-tax-creates-penalty-illinois-business.html.

Additionally, gross-receipts taxes " ... are generally thought to be more economically harmful due to tax pyramiding and nontransparency," according to the Tax Foundation: taxfoundation.org/state-corporate-income-tax-rates-brackets-2017/.

Illinois' corporate tax rate is lower than Iowa's (12 percent), Minnesota's (9.8 percent) and Wisconsin's (7.9 percent) — states all better ranked than Illinois by the magazine. North Carolina's rate is a very low 3 percent.

The myth that Illinois' personal income tax rate is exceptionally high is further promulgated: North Carolina's income-tax rate is 5.49 percent, over 0.5 percentage points higher than Illinois' 4.95 percent. For further comparison, Iowa's rate ranges from 0.36 to 8.98 percent; Minnesota's, from 5.35 to 9.85 percent; and Wisconsin's, from 4 to 7.65 percent): kiplinger.com/tool/taxes/T055-S001-kiplinger-tax-map/compare.php.

Chief Executive's perception doesn't necessarily line up with the facts.

Gov. Bruce Rauner could have chosen to work with the General Assembly to change policies in Illinois to improve the business climate rather than taking a hard-line, "my way or the highway" approach with his so-called "Turnaround Agenda."