Prairie State Wire

When Elliot Richardson of the Small Business Advocacy Council (SBAC) was informed of Illinois Gov. J.B. Pritzker’s plan to close corporate tax loopholes as a way to balance the state budget, he decided to monitor the situation.

“I'm concerned about small business owners every day right now in the midst of this pandemic,” said Richardson, president and co-founder of SBAC Illinois. “We’ve got to really look at what the governor proposes in terms of what loopholes he's advocating to close and take action if it's going to negatively impact the small business community.”

Pritzker announced he will close corporate tax loopholes to unearth $900 million in yearly revenue, according to media reports.

“An increase in any sort of tax burden at this time could be the final straw that puts a business out of business,” Richardson told the Prairie State Wire. 

As previously reported, Pritzker’s announcement comes three months after voters rejected a proposal to raise $3 billion a year through a graduated income tax.

“For a local business of 10 to 15 employees to see their tax burden increase right now, you're not closing a loophole,” Richardson said. “You're just hurting a small business. It’s what loopholes the governor is talking about that's going to make all the difference.” 

Pritzker’s budget proposal was released Wednesday. 

“Now more than ever, especially with COVID-19, small businesses need a more-level playing field as they struggle to keep their doors open during the economic crisis that we have,” Geraldine Sanchez Aglipay, director of Small Business Majority, said.

The state’s COVID-19 dashboard reports 1,155,833 coronavirus cases statewide and 19,841 fatalities as of this week.

“What we do know from our polling is that small business owners, including the self-employed and those who employ five to 100 workers, consistently feel that the tax code unfairly benefits big businesses and multinational corporations over small businesses like theirs,” Aglipay told the Prairie State Wire.

The Illinois General Assembly will have the final say on approving funding allocations.

“A lot of small businesses have been struggling since the onset of this pandemic, and it’s going to take a very long time for a lot of businesses to recover from the pandemic with a vaccine,” Richardson said. “There's a lot of work that needs to be done.”