Community Events

CircEsteem 11th Annual Winter Circus at Alternatives

4730 N. Sheridan

Saturday, December 17th at 1 and 5 p.m.

Sunday, December 18 at 2p.m. Click here for more details.

Insight Arts Adult/Senior Program

Offering free programs on Thursday December 15th 1-4pm
and Saturday December 17th 1-4 p.m. at 1505 W. Morse. Requesting donations of art
supplies like water color painting sets, drawing supplies like crayons,
markers and related supplies, beads and broken/unwanted costume jewelry,
yarn and knitting needles , easel pad paper, no salt added food items for nutrition program. Contact Anita
Alcantara @ 773-409-4678 or click here for more details

TPAN (Test Positive Aware Network)

5537 N. Broadway St.

Chicago, IL 60640

773-989-9400

Contact: Lorraine or Derek

Open: M-Th: 9am-9pm and Friday: 9am-4pm

Need:  Toiletries, soap, shampoo, toothpaste, toothbrushes, razors-or other personal care items, as well as unused children's toys.

Dear Neighbor,

Yesterday the Senate reconvened in Springfield to vote on two proposals. Both bills passed and are outlined below along with an explanation of my vote.  These bills will be sent to the Governor for signing.   It is unlikely the General Assembly will meet again before the start of the spring legislative session on January 31, 2012. I wish you a wonderful holiday season!

Personal Exemption and Earned Income Tax Credit (EITC)

SB400 helps the working poor by increasing the EITC from 5% of the federal credit to 7.5% in 2012 and 10% in 2013 and thereafter. This bill also increases the standard exemption on the Illinois personal income tax from $2,000 to $2,050 per person in 2012 and subsequently ties it the Consumer Price Index. Together these changes will keep $55 million of earnings in struggling families' pockets in FY12 and $110 million in FY13.

I voted for this bill since it adds a measure of progressivity to our state income tax, which is one of the most regressive in the country (Illinois low-income families pay a much higher share of their income in state taxes than the national average while high-income families pay a much lower share of their income than the national average).   We have not changed the EITC since it was enacted in 2000 and it is currently very low compared to other states (Midwestern states range from 7-33%). If the personal exemption had kept pace with inflation since it was created in 1969 at $1,000 it would currently equal $6,170.

Tax Breaks and Relief for Corporations

SB397 includes the following components:

• CME Tax Relief. The bill establishes a new apportionment method for federally regulated exchanges (Chicago Mercantile Exchange and Chicago Board of Options Exchange). Currently all electronic orders are taxed as if parties are based in Illinois, although under 30% of transactions are attributable to Illinois. The new method will apportion the revenue based on being sourced in Illinois.
• Sears EDGE Tax Credit. Sears is enabled to use EDGE tax credits against their tax liability for 10 years, for an estimated reduction in tax payments of $15 million a year.
• Champion Labs EDGE Tax Credit. Champion Labs in Albion, Illinois is enabled to use EDGE tax credits against their tax liability for 10 years, for an estimated reduction in tax payments of $350,000 a year.
• Live Theater Production Tax Credit. The State Department of Commerce and Economic Opportunity can award up to $2 million of this new credit to a production company. A production company is eligible for an amount up to 20% of the production's labor cost and 20% of the show's Illinois production spending.
• Research and Development Credit. The bill extends the current R&D credit through 2015.
• Net Operating Loss. Corporations can use up to $100,000 in net operating losses in 2012 and 2013. In 2014 the net operating loss suspension ends and there will be no cap.
• Estate Tax. Currently the estate tax exemption is $2 million, meaning estates valued under $2 million do not pay any Illinois estate tax. This bill increases the exemption to $3.5 million in 2012 and $4 million in 2013.

While I agree we need to create a climate in which businesses can thrive in Illinois, I voted against this bill for two primary reasons. First, it costs $200 million/year, thus adding significantly to the state's budget challenges.   Second, I believe we need broad tax reform to enable all businesses to grow in the state rather than continuing to provide target breaks for a select few companies. I am encouraged that the General Assembly will take up broader tax reform in the spring session and look forward to this discussion.

If you have any questions, concerns or suggestions, please contact me at 773-769-1717 or at heather@heathersteans.com.

Best regards,

Heather A. Steans