IVCA Member Alert! "Privilege Tax" Re-introduced

IVCA Member Alert!  "Privilege Tax" Re-introduced

January 31, 2018

Targets on capital gains earned by investment managers.

On Friday January 19, 2018, Rep. Chris Welch introduced HB 4293, the House version of Senator Daniel Biss’ 20% “privilege tax” on the capital gains income earned by investment managers. As you know, this bill has already passed the Illinois Senate as SB1719.  We were successful last year in defeating HB 3393.

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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