Privilege tax on investment services would do more harm than good for state, banker association exec says
Debbie Jemison, vice president of communications/marketing at the Illinois Bankers Association (IBA), said proposed legislation involving a privilege tax on investment services would have a negative impact on the state.
As stated on the Illinois General Assembly website, HB4293 “imposes a privilege tax on partnerships and S corporations engaged in the business of conducting investment management services. (And) provides that the tax shall be imposed at the rate of 20 percent of the fees calculated by reference to the performance of the investment portfolio funds and not from the investment itself.”
“In today’s interconnected world, billions of dollars travel across the globe in less than seconds,” Jemison told Prairie State Wire. “HB4293 and SB3189 would both put Illinois’ vital financial service sector and the tens of thousands of jobs it employs at risk.”
House sponsors of the bill are Reps. Emanuel Chris Welch (D-Hillside) and Ann Williams (D-Chicago); the Senate sponsor is Sen. Daniel Biss (D-Evanston).
“Illinois has benefited from being a top 10 globally recognized financial hub,” Jemison said. “These bills would hurt our state’s global reputation and would force investors to look to less hostile cities such as Boston, Dallas and Charlotte.”
Jemison has served as vice president at the IBA since 1999. The full-service trade association is dedicated to creating a positive business climate that benefits the entire banking industry. Members include state and national banks of all sizes, savings banks, savings and loan associations, financial services firms, securities brokers, trust companies, insurance companies, and payments industry organizations.