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CAT Tracks for December 15, 2011
IL BLINKS...SEARS WINS |
Sears threatened to move out of IL unless IL reduced its taxes.
Hence...newly passed legislation.
But, hey, I'm good...
...just trying to decide where to spend my $2.50.
Does Sears even sell anything for $2.50?
(Actually, I am good...as long as the legislators keep their paws off my pension!)
From the WSIL TV Channel 3 Website...
How The State Tax Changes Affect You
By Fanna Haile-Selassie
WSIL TV -- The tax relief package just passed by Illinois lawmakers will bring changes for many Illinois residents in the next couple of years. Besides offering big breaks to businesses, it's meant to help some families, too.
There are four areas where the majority of southern Illinois residents might see changes in their taxes. However, the changes you could see will vary tremendously, from as little as two dollars to two million.
"I insisted that this not just be tilted one way towards business and corporations," explains Governor Pat Quinn.
Technically, the two tax bills now sitting on Governor Pat Quinn's desk do have tax breaks for the little guy as well, but are they as balanced as some lawmakers say?
The package includes a $50 increase in the personal exemption for everyone in the state. That means any earnings above $2,050 during tax year 2012 will be subject to the state's five percent income tax. Sounds like a $50 refund, but for a person who earns $35,000 a year, he or she would only save $2.50.
A bigger change will come through the increase in the Earned Income Tax Credit, a federal and state tax break for low wage workers. In two years, it will double from five percent to ten. So let's say that person who makes $35,000 a year has one child, that person would see about $80 more from the state in 2012 and about $160 more 2013.
Then there are the small business owners.
"Now the net operating loss being targeted up to $100,000 is a direct benefit to small business. And It's directly targeted towards small businesses," says Representative John Bradley.
Businesses will get a tax break on any operating losses up to $100,000. Bradley says this will affect up to 36,000 businesses in the state.
And if you're a farmer, the increase in the estate tax exemption is meant to help you, by raising the cap to four million dollars from two million.
All these changes will begin during the 2012 tax year, so people will start seeing a change in their refunds in 2013.
Sears is getting a tax break through the EDGE tax credit program. Mt. Vernon's Continental Tire received the same credit earlier this year. Sears would save money on the income tax owed by its employees.
By Jared Roberts
Story Created: Dec 14, 2011 CST
(Story Updated: Dec 14, 2011 at 9:28 PM CST )
