SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
“Matlaked Again”

Saturday, Mar 31, 2007

If this video isn’t the best of the Chicago runoff season, I don’t know what is…


- Posted by Rich Miller   Comments Off      


Weekend Extra - GOVERNOR CHANGES HIS GRT PLAN *** Updated x4 ***

Saturday, Mar 31, 2007

[Password removed because others have caught up. See updates below, including links to the actual amendments.]

The governor’s office has agreed to change his proposed gross receipts tax, according to a memo obtained from his budget office.

After complaints by Senate Democrats about the number of businesses that would be hit by the GRT, the governor has agreed to raise the minimum taxation point on the gross receipts tax from $1 million to $2 million, which will impact fewer businesses.

However, the gross receipts tax rate will rise. The GRT on services will go from the initially proposed 1.8 percent up to 1.95 percent, while the rate on goods will rise from the initial 0.5 percent to 0.85 percent. The revenues the gross receipts tax will now bring in will increase from $6.3 billion to $7.6 billion.

That extra money raised by the revised GRT will be mostly used for $1 billion in property tax relief, which was not in the original plan.

The following was e-mailed to me late yesterday from the governor’s office and was slightly revised for style. All emphasis added…

Today the key components of the Governor’s Investing in Families budget plan were filed in the Senate. Thought you’d want to know the bill numbers for tracking purposes.

Senate Bill 1 contains the education funding plan, the gross receipts tax revenue plan, and a property tax relief plan. The bill language reflects a few revisions worked out with the Senate:

Gross Receipts Exemption: increases from $1 million to $2 million – 85% of all businesses in Illinois now exempted

GRT services rate: increases from 1.8% to 1.95% (increases from $1.85 on every $100 to $1.95)

GRT goods rate: increases from .5% to .85% (increases from .50 cents for every $100 to .85 cents)

Total net revenue: increases from $6.3 billion to $7.6 billion ($1.3 billion increase, rounded)

$1.3 billion covers: $250 million bonded road program; $1 billion in property tax relief

Additional highlights:

Education – stays the same/$10 billion over 4 years

Healthcare – stays the same/all uninsured get access to affordable health care

Senate Bill 2 contains bond authorization for the Governor’s $1.5 billion school construction plan, $150 million for school maintenance grants, and $30 million for early childhood capital expansions.

Senate Bill 5 contains the Governor’s Illinois Covered plan to provide every Illinoisan with access to affordable health coverage.

Senate Bill 1090 contains language eliminating road fund transfers for SOS and ISP that cover health care and pensions for employees on our state roads (which started during the Edgar administration); these funds will instead be dedicated for bonded road construction projects. This legislation will allow the state to dedicate up to $3 billion more for the bonded road program.

*** UPDATE *** The AP has react on the plan, which they report was “forged in discussions with Senate President Emil Jones“…

Proponents say the tax would do a better job at gathering revenue as the state economy shifts from manufacturing to services.

‘’The package dramatically boosts education spending, gives every person in Illinois access to affordable health care, ensures property tax relief for homeowners around the state, invests in important infrastructure projects — and makes all of that possible by asking wealthy corporations to finally pay their fair share,'’ said Blagojevich spokeswoman Abby Ottenhoff.

But business groups say the new plan will drive up consumer prices and discourage companies from doing business in Illinois.

Gregory Baise, the president and CEO of the Illinois Manufacturers’ Association, called the new proposal ‘’unbelievable.'’

‘’The kind of negative reaction to this tax hike will only be compounded by this lunacy,'’ Baise said. ‘’This governor wants to tax too much. He wants to spend too much on his way to ruining the Illinois economy.'’

*** UPDATE 2 *** YDD has a comparison over at Illinoize of the revised GRT and HB 750

At the end of the day, the Governor’s plan calls for $8.6 billion in new taxes, with only $1 billion in tax relief, for a net increase in taxes of $7.6 billion. Funding for K-12 classrooms will increase $1.5 billion the first year, bringing foundation level funding to schools 6% below recommended levels. Higher education will see a meager $50 million increase.

House Bill 750 generates $9.05 billion in new taxes, but provides $3.6 billion in tax relief, for a net tax increase of only $5.45 billion, or 30% less than the Governor’s plan. House Bill 750 provides $3.9 billion for K-12 classroom instruction in the first year — 260% more than the Governor’s plan, bringing the foundation level funding for schools up to 100% of recommended levels. In addition, HB 750 provides $300 million more for higher education, 600% more than the Governor’s plan.

In the final analysis, only 20% of the net new spending in the Governor’s plan goes to education, while 72% of House Bill 750’s net new spending goes to education. Granted, this doesn’t include new spending on school construction, and I’ll post comparisons of both school construction plans as soon as they are available.

*** UPDATE 3 *** Full text of pertinent amendments

* (GRT) SB1, Amendment 1

* (Illinois Covered plan) SB 5, Amendment 1

* And the synopses for all amendments can be found here.

[Hat tip: AR]

*** UPDATE 4 *** Dan Johnson-Weinberger has a post at Illinoize on a very unfavorable look at the governor’s gross receipts tax by the “progressive” Institute for Taxation and Economic Policy. Dan’s post is here. The two-page study [pdf file] is here.

- Posted by Rich Miller   Comments Off      


PREVIOUS POSTS »
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Samsung Galaxy Note 4 release dates revealed
        * Garmin’s Forerunner 920XT is tracker for the fitness-minded
        * HealthKit app Lark talks to you to help you stay active
        * Our most powerful portable charger yet
        * Get to know iOS 8: Five convenient new tricks in Safari
        * Verizon stops throttling,doubles data in shared plans
        * Samsung bends a Note 4, cause the iPhone 6 Plus can’t take it?

        * What's The Best Place to Buy Computer Parts?
        * Over 2 Million iPhone 6 And 6 Plus Units Have Been Reserved In China
        * Exynos Samsung Galaxy Note 4 Benchmarked In Multiple Tests
        * Trustworthiness Is Just as Important as Competence in Leadership
        * LG Could Be Working On webOS Smartwatch
        * Samsung Confirms They Will Produce Apple’s Next-gen A-series Chips
        * Net Applications: Windows 7′s Market Share Continues To Dominate

        * Third-base coach McEwing to interview for D-backs job
        * Guide to American League rooting interests for White Sox fans
        * Anderson, Edwards prospects to watch in AFL
        * Manager notes: How Robin Ventura and Chris Sale get along
        * Voting underway to decide Hank Aaron Awards
        * Development of young core in '15 can define Chicago's future
        * Improved White Sox take important step in 2014


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Major Person in Gov Quinn's Anti-Violence Progr.....
        * The Race for Attorney General Tightens Up in 9 .....
        * Chicago pension crisis balloons, underscoring n.....
        * Greater Chicago Fil-Ams set lots of History Mon.....
        * New Poll Shows Governors Race Is Close..
        * The 10 Most Vulnerable House Members..


        * Waukegan schools close as teachers' strike looms
        * 20-years in prison for hit-run crash that killed 2
        * Obama hits Chicago to stump for Gov. Quinn
        * AP PHOTOS: Lines linger for famed Chicago hot dogs
        * Official: Donations drying up for Lincoln library
        * Respiratory virus seen in 4 deaths; role unclear
        * Obama in Chicago for political appearances
        * Flight operations at Chicago airports improving
        * Governor candidates' views on Obama library evolve
        * Illinois Woman, son charged with meth conspiracy

        * Governor candidates’ views on Obama library evolve
        * Obama in Chicago for political appearances
        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * ALPLM at center of legislative hearing in Chicago
        * Former head of anti-violence program to testify
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act

        * Sears to sell most of Sears Canada stake
        * Blade runner: She took up hockey at 40
        * Accessorized for the office
        * Shrimp farming in Indiana: Believe it
        * 10 Things to Do


        * Tragedy demands review of DCFS
        * Ease up on school budgets permanently
        * Keep the heat on political corruption
        * Burge leaving prison, but a mess remains
        * Emanuel prods sister agencies to mandate $13-an-hour wage
        * The thug life runs deep
        * Vigil held for Skokie teens; two Niles North seniors shot, one killed
        * Taxi reforms steer in the right direction
        * Thunderstorms early Thursday could disrupt O’Hare, Midway flights
        * Northeastern Illinois University unveils flashy new building on NW Side


        * Waukegan schools closed because of teachers strike
        * Few red light camera refunds, spikes unexplained
        * 1 dead, 2 wounded in overnight shootings
        * 5 wounded in separate city shootings
        * Waukegan man, 58, charged in shooting
        * Coyote who got stuck in car grill expected to recover
        * Obama in Chicago area for fundraiser, speech
        * Storms may strain air traffic system still recovering from fire
        * Chicago, suburbs tell U.S. to tighten crude-oil train rules
        * Man dies in shooting incident at Des Plaines gun range


        * LLCC Announces New Ag Programs
        * Tim Landis: Bike Lanes, Medical Marijuana And Meat
        * Clock Ticking On Illinois Prison Crowding
        * Decatur Unemployment Shows Biggest Drop In Nation
        * Quinn Lauds Affordable Care Act, Backs Down From State Marketplace
        * A Redo On Redistricting
        * Polls Showing Illinois Governor's Race A Draw
        * Bruce Rauner, Before He Was A Candidate (Author Interview)
        * Listen to State Week - September 19, 2014
        * Clearing The Air On Clean Air Plan


        * Our View: Lawmakers, stay away from the IHSA
        * On Lincoln’s Side: Lincoln gambles on Nevada
        * Brian Gaines: Why Illinois needs redistricting reform
        * George Will: A new case for term limits
        * Eugene Robinson: Get the authorization
        * Bernard Schoenburg: The long, short of public perceptions of candidates for governor
        * Governor candidates’ views on Obama library evolve
        * Obama in Chicago for political appearances
        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * Former head of anti-violence program to testify


        * Hotels get warning about taxes
        * Markusen presents leaders with 'creative economy' ideas
        * Our View: Anti-violence probe questions rising again
        * LLCC students share cultures
        * Shakespeare’s women come out to play
        * Oktoberfest celebrates German heritage
        * Carbondale police looking for 'Pumpkin Patrol' volunteers
        * JHS band to perform in 33rd annual Classic
        * Police reports
        * Looking Back (Oct. 2, 2014)


        * Move over Mom: Pumpkin puree pumps up oatmeal cookies
        * Earmarks could return to pay for transit, Durbin says
        * Skies now more friendly for kids on autism spectrum
        * Gire: Local theaters screening classic horrors
        * Dour 'Men, Women' weaves somber suburban stories

        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...
        * Representative Jan Schakowsky Statement on...
        * Representative Jan Schakowsky Statement in...
        * U.S. House Passes Resolution Condemning An...
        * Representative Jan Schakowsky Statement on...

        * 2012 Predictions Revisited: What the Seers......
        * 2012 Predictions Revisited: What the Seers......
        * Illinois gets $19 million for justice prog......
        * Illinois gets $19 million for justice prog......
        * Illinois gets $19 million for justice prog......

        * Governor race focuses on labor, unemployment...
        * Israel On The Outs Over Iran?...

        * Karen Lewis. We can’t think in silos any longer.
        * Family friendly.
        * Ives and Connelly team up for forum on proposed changes to school funding
        * Starkehaus: Ebola is America’s lesson in why truth and integrity matter
        * The Week In Chicago Rock
        * Local Music Notebook: Doing The Jacksons
        * The Beachwood Radio Sports Hour #19: Rodgers Playing At Cutler-Like Level
        * The College Football Report: The Fighting Costanzi!
        * Fantasy Fix: Running For Their Lives
        * The Geek Guests On WGN Radio 720 AM Thursday Night


        * Screwed Up
        * Jobs Governor
        * Wake Up
        * Rauner Launches Three New TV Ads
        * Quinn must take lame duck tax vote off the table




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller