Small Businesses are Drowning Under Taxes, Mandates
Small businesses are the lifeline of our communities. In fact, nearly 48% of Americans are employed by small businesses. Despite the importance of the employers, the State of Illinois continues to make it harder for them to operate.
The unbalanced budget that was passed in 2021 included $600 million in tax increases, many of those on our smaller job creators. A few of the blows to these entities include:
- The reinstatement of the burdensome franchise tax on any business making more than $1000
- Capping the amount of losses businesses can deduct
- Stifling immediate investment in the economy by backloading when business can depreciate purchased assets
I voted against this budget, as did my Republican colleagues. But the majority prevailed and dealt another blow to our small businesses. This on top of the hardships brought on by COVID and Pritzker’s seemingly endless executive orders.
It’s sad to see this trend return, as progress had been made in 2019, with the Blue Collar Jobs Act, a bill that I was proud to support and see signed into law. This law was a great start to bringing jobs back into Illinois, instead of the exodus we’ve seen for many years. But provisions of that bill were already targeted for removal by Democrats in the Illinois House. Two steps forward, one step back, it seems.
While there were some smaller bright spots, such as the bill that helps bring electric vehicle manufacturing jobs to our state, the overall climate for small businesses is poor. Changing that climate is one of my main objectives as we return to Springfield for the Spring legislative session. As our family businesses and smaller enterprises struggle to find and retain employees, while fighting off the impact of the pandemic, taking a more pro-small business approach is absolutely essential to support this vital part of our economy.