Governor Pritzker and The Illinois General Assembly have passed a budget this year providing $1.8B in tax relief from many things including property and gas taxes. The problem is that these gimmicks, designed to sway voters in an election year, are only temporary.
In the last four years of Governor Pritzker’s tenure, the average Illinois family has seen a net tax increase of $2,165. This is due to 24 tax and fee increases which included a gasoline tax which was doubled.
During this period, our neighbors have pursued real tax relief.
Indiana passed a law reducing its income tax rate from 3.23%, which was already the third-lowest in the nation, to 3.15%. This rate is scheduled to further decrease to 2.9% in 2029 as long as certain economic and fiscal conditions are met.
Iowa is phasing in a single income tax rate of 3.9%. Its current system is a graduated system on income tax rates that top out at 8.9%
Kentucky’s legislature passed reforms over the veto of their Democratic Governor to reduce their current flat income tax rate from 5% to 4.5%. The new law will also trigger automatic .5% income tax rate reductions as long as state funding reserves are maintained and their revenues exceed expenditures.
What does all of this mean? Illinois will suffer re-election campaign gimmickry while our neighbors are providing real and lasting tax relief. This will only further reduce our competitiveness in the business and job marketplace.
Illinois has been struggling to recover jobs and broke a record last year for population loss. I can only see these appalling and abhorrent trends continuing.
Voters will always vote with their feet.
Let me leave you with this.
We’ve seen a substantial uptick in new clients coming to us for the Employee Retention Credit (ERC) . In the past two weeks we’ve signed eight new agreements, with many others still on the way.
The ERC is the Last of the Mohicans, in that it’s the only stimulus money that’s still available. PPP Loans ended in the middle of last year and the EIDL stopped taking new applications on December 31st.
We have up to three years from the original due date of the 941 to complete and submit an amended form claiming the ERC. Since the credit was only available from the 3rd Quarter of 2020 through the 3rd Quarter of 2021, that still gives us some time to claim this money.
If you or any of your friends haven’t yet signed up for our Employee Retention Credit Consulting and Preparation Program, I’d suggest you get to it today. The current lag times on the credit are ranging from 9 to 12 months from submission of the form to receiving a payment.
This means that if we file the amendments today, that money would be arriving just in time for the next recession. It might be the only thing that keeps you or your friends open.
Further information and a sign up form can be found at
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.