In his recent contribution to Wednesday Journal, Jack Crowe [Are Democrats the problem in Illinois?] made the erroneous assumption that since Illinois’ corporate income tax rate is 9.5%, corporations actually pay that rate. Nothing could be further from the truth. 

Three-quarters of Illinois corporations pay no state corporate income tax whatsoever! What about the other quarter? According to one study, 22 Illinois corporations with pretax income of $5 billion or more had an average effective tax rate of 1.9% (the highest effective tax rate, Exelon, was 4.4%; the lowest was Allstate, 0.00%). 

The tax deal for Motorola Mobility, Navistar International, Ford Motor and other huge Illinois corporations is even sweeter in that they get to retain the state income taxes paid by their employees. Money that would otherwise fund schools, roads, etc. are added to their bottom line. 

Therefore, Mr. Crowe need not lament the fate of Illinois corporations. They are doing very well. 

Al Popowits

River Forest

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