To show that a guy with nine homes can be a man of the people and not just another corporate frontman, Republican Bruce Rauner last month offered up his ideas for closing special interest tax loopholes.
Topping Rauner’s list, which was indeed somewhat unusual for a GOP candidate for governor, were two tax loopholes Gov. Pat Quinn had previously advocated closing.
Noticeably missing from Rauner’s proposal, however, was a loophole Quinn and other Democrats have argued would sensibly save the state $100 million a year — as much money as the other two combined.
As it happens, that’s a loophole from which Rauner personally benefits.
It’s called the domestic production activities deduction, and it’s right there on Line 35 of your federal 1040 form, not that I’d ever had any reason to notice until now.
Over a three-year period, Rauner claimed more than $671,000 in deductions using this loophole, which in addition to the federal tax savings also reduced his state income tax bill by more than $29,000.
I realize that’s a drop in the bucket for somebody who made $53 million in 2012 alone, but from such drops are born big budget deficits.
