State Senator Dave Koehler and Representative Mike Smith were able to pass legislation that will save Keystone Steel and Wire a bundle of money in taxes that had threatened to shutter the struggling business. Koehler’s office issued a press release that explained:
Senate Bill 328 allows Keystone to continue to benefit from a tax exemption it has long enjoyed. Illinois provides a tax exemption to businesses in enterprise zones that employ more than 1,000 full-time workers. Due to the recession, Keystone has had to cut back on employee hours and no longer qualifies. The legislation allows Keystone to
continue to take the exemption as long as it maintains at least 500 full-time employees and gradually works back up to 1,000 full-time employees by 2013. The potential effect of losing the exemption could amount to a monthly financial loss of $140,000 per month for the company and threaten its financial viability.
Keystone’s enterprise zone was established in the mid-1980s.
AWESOME! Is there any corporation that taxpayers aren’t supporting? That is soooooo kewl.
I am currently considering refusing to pay my property tax because the bank holds my mortgage which makes them the owner of the property… Shouldn’t the bank pay the tax on the property they own?
Just curious.
How much did Keystone contribute to Koehler and Smith’s political campaigns?
Tax break…not subsidy. There’s a difference.
David: What is the difference? Are the taxpayers financing this taxbreak?
If I give you money it is a subsidy, and if I tell you not to give me money it is a tax break. Either way you have the money and I don’t… yeah David, what is the difference?
But they do employ local folks – that’s a consideration for lawmakers and, I would think, for us.
The difference, Charlie, is that you’re not entitled to proceeds from Keystone Steel & Wire’s sales anymore than Keystone Steel & Wire is entitled to your income. You each should be able to keep more of your own money.
I’m not in favor of this tax exemption anymore than the next person, but let’s face it, a portion of KS&W’s annual payroll amounting to far more than $1,680,000 annually ends up in county coffers. KS&W keeping more of THEIR own money benefits the region more than if they paid $1,680,000 in extra taxes annually, because, well…they wouldn’t pay it because the plant would probably have shut down.
If and when the economy improves and KS&W’s sales return to healthy levels, I’d be the first to vote to end the exemption.
…and then if this corporation ever makes a profit the democrats will cry that the corporation is exploiting its workers in some manner.