State Senator Win Stoller says a simple tweak in the tax code signed into law Monday will bring tremendous relief to small businesses.
The law enacts a method for avoiding the $10,000 cap on the State and Local Tax deduction, also known as the SALT deduction.
Currently, owners of pass-through entities report their share of business income on their individual federal income tax returns. This means that they are subject to the $10,000 deduction cap on SALT taxes.
The first-term Republican calls it revenue neutral for Illinois while providing relief to businesses. It won’t affect state revenue or expenses whatsoever. It only reduces the amount paid on federal taxes.
Stoller says there’s a lot more work to do in alleviating taxes but is thankful to support on both sides of the aisle to get this bill passed.
400,000 small business owners will be able to benefit according to Stoller. He says coming from a small business background opens his eyes to these kinds of issues in the state.
He adds that 14 other states have passed or are in the process of passing similar laws.
Region: Northern,Feeds,News,Region: Galesburg,City: Galesburg
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August 31, 2021 at 04:50AM