IVCA Member Alert! Update on Re-introduced "Privilege Tax"

Member Alert! Update on Re-introduced "Privilege Tax"

February 14, 2018

HB 4293 (Welch) is the bill to watch (at least so far) in 2018 for the 20% “privilege tax” on capital gains income earned by investment managers.  The bill was introduced 1/19/18 and referred to the House Committee on Revenue and Finance 2/5/18.  It was posted for a hearing today, but was not called.  Please take two minutes to submit a witness slip against HB4293. Witness slip can be found HERE.  Anyone in your firm, your family, your friends are all invited to fill out a slip and establish a record of opposition to this bill. Please forward this witness slip to all your friends and family.

Unlike the privilege tax bills in 2017 (SB 1719 and HB 3393) HB 4293 has no additional cosponsors.  IVCA is joined by a coalition of business interests opposing the bill and we are meeting one-on-one with members of the Revenue Committee as well as with an identified group of House members we believe are likely to join us and our coalition in opposition.  You may help by contacting your House and Senate member and letting them know why this would be unwise and help them explain the impact it would have on Illinois businesses we help finance and grow, and how it would drive away IVCA members from the state of Illinois.  Contact Maura O’Hara for background information you may use and for how to contact your legislator if you need any further assistance.

You may follow this link to see the complete information on the bill and its status:

http://www.ilga.gov/legislation/BillStatus.asp?DocTypeID=HB&DocNum=4293&GAID=14&SessionID=91&LegID=108804



Please engage your House Representative on this existential issue for our industry in Illinois and ask him/her to actively oppose this industry-killing measure.   Illinois cannot afford to be the least attractive State in the Union for investment managers. 

Members should explain this bill would:

  • Destroy high-paying tech job growth in our state
  • Drive high net worth tax payers out of the state
  • Reverse the progress Illinois has made growing a vibrant technology economy
  • Restrict capital opportunities for Illinois growth companies.
  • Make Illinois an outlier on how Investment Managers are taxed relative to EVERY other state in the Union

Please, take action on this issue!  We know that constituents have the strongest opportunity to influence Representatives.


 

SAMPLE EMAIL:

Subject: Vote “no” on HB 4293


Dear Rep.______;

The incredible growth of the technology ecosystem and high-paying entrepreneurial jobs in Chicagoland over the last 10 years is directly attributable to the availability of venture capital funding backing great entrepreneurs.

Between 2013 and 2017, 1211 companies located Illinois received $6.7 billion in venture funding. The Chicago Entrepreneurial Ecosystem is finally hitting on all pistons.

If HB 4293 passes, it is virtually guaranteed that all Illinois-based venture funds will move. Illinois needs more investors in private companies, not fewer.  Why would a single VC stay in Illinois when ANY other location in the country is 20% less expensive?

As a constituent in your district and a citizen who recognizes our state needs to encourage businesses to stay here and continue to provide great jobs to citizens in Illinois – particularly recent graduates; I respectfully request that you vote no on HB 4293.

Please feel free to call me if you'd like to discuss this issue.

Yours,
 
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