SCHAUMBURG, IL – The Technology & Manufacturing Association (TMA) is sounding the alarm on HB 5412, warning that it will increase the cost of doing business in Illinois. Small business contractors will lose business as the bill disincentivizes subcontracting—a concept that will likely lead to effects on the manufacturing industry. The bill supposedly intended to protect against wage theft is actually a punishing blow to the “little guys” who are the heart of the Illinois economy.
The leading sponsor of the bill refers to it as a “[T]ax on the big guys,” but the “little guys” vehemently disagree with his characterization. The Hispanic American Construction Industry Association, the Black Contractors Owners and Executives, the Federation of Women Contractors, and others all stood together in opposing this bill on the grounds that it would create a de facto incentive for large contractors to avoid utilizing small shop subcontractors, many of which are woman and minority-owned businesses. This bill would also drive up costs for small subcontractors and non-union shops.
TMA Executive Vice President, Dennis LaComb, said, “Manufacturers are concerned what this could mean for our industry moving forward because this bill incentivizes large contractors to offer a full umbrella of in-house services which means small business sub-contractors are left holding the bag. In the end, it’s the customers and end users who will be asked to pay more. This is yet another tax on small businesses and Illinois consumers.”
The cost of doing business in Illinois is already higher than any of our neighboring states, and our regulations and tax climate have chased Illinois employers to more business-friendly states. Yet this bill somehow manages to make Illinois an even less attractive place to do business.
“The hypocrisy of Illinois politicians isn’t even surprising anymore,” LaComb said. “This bill specifically exempts union projects and projects funded by government. So not only are these politicians exempting themselves from this bill, it’s yet another effort to support their union benefactors and punish non-union labor. They don’t even care they’re hurting small businesses, family manufacturers, and consumers in the process.”
TMA is asking those concerned about Illinois' construction and manufacturing industries to file a witness slip online HERE.
