DAVENPORT, IOWA (September 29, 2020) — The Quad Cities Chamber of Commerce joined other business groups in opposition to the proposed State of Illinois Constitutional amendment raising personal and corporate income-tax rates from a flat rate to a graduated rate. The amendment is on the ballot for the upcoming November 3 election. 

Illinois currently taxes income using a flat-tax structure mandated by the Illinois Constitution. A flat-tax structure means all individuals and all corporations pay the same rate regardless of income. If voters approve this constitutional amendment, the state will not be required to tax at a flat rate enabling the legislature to implement a graduated income-tax structure. Based on income levels, proposed legislation would increase corporate tax-rates up to 10.49% (7.99% income tax + 2.5% Personal Property Replacement Tax) and small-business (S-Corps) tax-rates could increase up to 9.49% (7.99% income tax +1.5% Personal Property Replacement Tax).

Last week, the Quad Cities Chamber surveyed business members to solicit their feedback. Eighty-two percent of respondents opposed the change.

“Raising the corporate tax rate would be detrimental not just to Illinois businesses but to our region’s economy as well,” said Paul Rumler, president and CEO of the Quad Cities Chamber. “Many are already struggling with decreased revenues and increased expenses due to the pandemic. The timing of this measure could further strain these companies.”

According to Rumler, implementing the proposed amendment would increase the tax rate without providing much-needed tax-relief elsewhere that puts Illinois businesses and communities at a competitive disadvantage.

“Our Illinois businesses are hurting already, and this would be one more thing putting them at a competitive disadvantage. As the regional business voice serving the entire bi-state Quad Cities region, our role is to elevate and amplify area business,” said Rumler.

About: The Quad Cities Chamber facilitates business growth and is dedicated to building a prosperous regional economy where all can thrive.

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