Illinois lawmakers have introduced a plan to require corporations to pay the state a cut of profits earned in offshore tax havens.
The legislation lists 48 countries that are known as tax havens. Under the proposal, the state would get a cut of the profits if a company doing business in Illinois makes money in one of those countries. Supporters of the bill estimate that it would result in $343 million in additional corporate tax revenue every year.
Another report said the state could net more than $1 billion annually with the change in tax law.
Sponsor Greg Harris, D-Chicago, said the state needs money and this would be a way to make businesses pay what he called their fair share.
“The bill that I am introducing is a step toward reclaiming some of that revenue and being sure that it is being paid fairly to the state of Illinois to support much-needed programs,” he said.
The bill would also remove exceptions that a percentage of a corporation’s assets have to be in the country to require filing in order to entitle Illinois to more taxes.
Sen. Heather Steans, D-Chicago, stressed that the proposal would assist in closing the budget gap and providing funding for services that have been reduced.
“We’re going to have to be taking many steps to address our budget problems in the state of Illinois, but this, I think, is a critical one to ensure that corporations in Illinois are paying their fair share,” she said.
Several other states have similar taxing structures.
Oregon’s worldwide reporting law was repealed in 2018 after lawmakers found diminishing returns and raised concerns about lawsuits.