The Chicagoland Chamber of Commerce takes exception to the Oct. 21 editorial (“These tax breaks earned veto”) positioning tax climate issues and education reform as “either/or” propositions. Both must be accomplished to improve the state’s business climate and the effectiveness of our school system.
The single sales factor and lease taxes will improve the competitiveness of Illinois as a place in which to expand or locate a business. Both clearly give a competitive advantage to Illinois businesses, both large and small, selling to customers beyond our state’s borders and encourage job development throughout Illinois.
We argue that including property and payroll in the apportionment formula penalizes business expansion in Illinois. A University of Chicago study, commissioned by the Illinois Manufacturers Association, finds that the legislation will create more than 250,000 new jobs over the next three years, including 155,000 high-wage manufacturing positions. The study also suggests that such growth will boost annual state tax revenues by $200 million.
In addition, the chamber has long supported education reforms that will encourage accountability, deregulation, innovation and improved student performance, the ultimate test of any reform measures. The chamber supports a foundation level of quality-based school funding, which can be accomplished with existing state revenue.
In order to maintain leadership and economic growth, Illinois should move boldly on both tax reform and education reform. Combined, these initiatives will make Illinois not just competitive but attractive to current and future employers and give schools the power to improve student performance.
Illinois deserves nothing less than to move forward on both fronts. We encourage the General Assembly to support the tax changes mentioned above and the education reforms that will create a competitive and skilled work force for the future.
