GOV, Gov. Blagojevich wants to pitch you on a new tax [D209]
Gov. Rod Blagojevich invites you to attend a community hearing on his Investing in Families Plan.
When? Thursday, May 10 4-6 PM
Where? PMSA, 8601 W. Roosevelt
Click here to RSVP.
Blagojevich has a proposal to significantly increase taxes on multi-million dollar businesses and using the money for schools, health care, property tax relief, funding pensions, etc. The new tax is called the "Gross Receipts Tax" (GRT). According to Wikipedia a GRT is used in the following states: Arizona, Delaware, New Mexico, Ohio, Texas and Washington.
Critics say the tax will have a variety of negative consequences. Businesses that have high volumes and low margins will leave Illinois. Businesses that can't leave Illinois will pass along costs to consumers.
Supporters of the GRT argue that some form of revenue enhancement is needed and the GRT hits the poor and middle class less than increasing other taxes, e.g. income tax, property tax and sales tax. (The Illinois Constitution prohibits charging wealthier citizens a higher income tax rate.)
Rich Miller (Capitol Fax Blog) wrote:
I think I like the GRT from the perspective of tax fairness. The United States has been shifting the cost of government onto the middle class and working poor. This trend should be reversed.
However, I'm not wild about Blagojevich's spending priorities.
As part of increasing the money for school districts we need to increase accountability for misspending money and we should really reflect on what constitutes a quality education in the modern era.
I am also skeptical of spending more money on health care at the state level. I think health care is too expensive a problem to be fixed at the state level. It really needs to be addressed at the national level.
What questions should defenders of Blagojevich's plan be asked?
When? Thursday, May 10 4-6 PM
Where? PMSA, 8601 W. Roosevelt
Click here to RSVP.
Blagojevich has a proposal to significantly increase taxes on multi-million dollar businesses and using the money for schools, health care, property tax relief, funding pensions, etc. The new tax is called the "Gross Receipts Tax" (GRT). According to Wikipedia a GRT is used in the following states: Arizona, Delaware, New Mexico, Ohio, Texas and Washington.
Critics say the tax will have a variety of negative consequences. Businesses that have high volumes and low margins will leave Illinois. Businesses that can't leave Illinois will pass along costs to consumers.
Supporters of the GRT argue that some form of revenue enhancement is needed and the GRT hits the poor and middle class less than increasing other taxes, e.g. income tax, property tax and sales tax. (The Illinois Constitution prohibits charging wealthier citizens a higher income tax rate.)
Rich Miller (Capitol Fax Blog) wrote:
Eric Zorn hits it right on the head today with a column about the governor’s gross receipts tax and business opposition. It all boils down to who you trust, Zorn writes. Do you trust that Blagojevich has come up with a reasonable, fair plan, or do you trust big business to take care of the uninsured and assume that their arguments against this “job killing” proposal are valid?
I think I like the GRT from the perspective of tax fairness. The United States has been shifting the cost of government onto the middle class and working poor. This trend should be reversed.
However, I'm not wild about Blagojevich's spending priorities.
As part of increasing the money for school districts we need to increase accountability for misspending money and we should really reflect on what constitutes a quality education in the modern era.
I am also skeptical of spending more money on health care at the state level. I think health care is too expensive a problem to be fixed at the state level. It really needs to be addressed at the national level.
What questions should defenders of Blagojevich's plan be asked?
Labels: Capitol Fax Blog, Eric Zorn, Gross Receipts Tax, Rod Blagojevich
posted by Carl Nyberg at
2:13 PM
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