September 28, 2022
  • September 28, 2022

Higher corporate tax will hurt the economy

By on March 13, 2022 0

As policymakers in Washington look to find additional revenue streams to fund government spending, the business community is once again being unfairly targeted to fund these programs in the form of additional taxes.

As gas prices skyrocket and the cost of food in our grocery stores continues to rise, it’s disturbing to see “everything is still on the table” when it comes to taxing manufacturers, to launch ideas such as increasing Global Low Intangible Tax Income (GILTI) and corporate tax rates.

If Congress goes ahead with increasing the GILTI rate, it could put manufacturers at a competitive disadvantage against their international competitors in global markets due to increased operating costs. A mere 10.5-15% increase could cost our country more than $10 billion in lost economic activity.

Illinois manufacturers generate more than $304 billion in economic output, contributing 12% of the state’s gross domestic product, the largest share of any industry in Illinois. Manufacturers employ 555,300 women and men in Illinois at an average salary of $88,691, providing $52 billion in wages and benefits.

At a time when we cannot afford to disadvantage our business community on the world stage, it is concerning to see these international tax hikes being considered in both Springfield and Washington. The impact of a corporate tax hike would impact business owners of all sizes. Make no mistake about the damage this could cause to our economy as we are all working to recover.

Here at home in Illinois, we will not be immune to the impacts that decisions like these in Washington will have. Now more than ever, we need our community to stand together and protect our Illinois businesses and those they employ.

Mark Denzler, President and CEO

Illinois Manufacturers Association