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


No Comments

Be the first to comment.

Sorry, comments for this post are now closed.


* Harris wants budget working group reinstated
* There are only two "sides" to pick from
* Because being governor apparently isn't enough work
* Yingling's second inartful Madigan dodge
* It's time to start taking this threat seriously
* "Personal economic coercion" harshly denounced
* Emanuel wants Rauner to publicly side with him on sanctuary cities issue
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

  
* Deal: Save $100 on the Asus Chromebook Flip, the laptop that turns into a tablet
* Mophie Launches Juice Pack Air Battery Case With Wireless Charging for iPhone 7 and 7 Plus
* Google Pixel Review: Android at its best, on mixed hardware
* Google Pixel XL Review: Successfully Succeeding the Nexus
* Google updates its search app, makes your personalized feed the main screen
* Instagram Will Soon Let Users Turn Comments Off Completely
* Uber Faces Negative Reactions After Update Introduces Background GPS Tracking

* Nationals shopping for big Sale?
* White Sox dismiss concerns about Sale
* White Sox contribute 3 items to Play Ball auction
* Nationals shopping for big Sale?
* For Hahn and White Sox, patience a virtue
* Interest swirls around Sale, but price is high
* Quintana commits to World Baseball Classic

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


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

Archives
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
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


* Mendoza sworn in as Illinois comptroller - Sauk.....
* Rauner to sign energy bill in Pt. Byron - OurQu.....
* Long Time Political Observer Doubting Any Long .....
* Emanuel wants Rauner to publicly side with him .....
* With automatic voter registration bill dead, ma.....
* The Latest: Rauner urges Mendoza to fight lawma.....
* Rauner Urges New Comptroller to Fight Lawmaker .....


* New Cook County prosecutor promises to reshape office
* Arrest made after man on Chicago rail tracks disrupts trains
* Chicago newspaper suing city over Laquan McDonald emails
* Fraternity backs Indiana State chapter probation after death
* Spokesman offers few clues on Trump's pipeline stance
* EXCHANGE: First black woman is Illinois State Police colonel
* Wisconsin woman, 78, dies in wrong-way crash in Illinois
* Spokesman offers few clues on Trump's pipeline stance
* Oil industry urges Trump to approve Dakota Access pipeline
* Could Dakota Access pipeline move after permit is denied?

* Mendoza on state's financial crisis: 'We're going to get out of this'
* State employee's friends, coworkers rally after stroke
* Labor board formalizes AFSCME ruling; union will fight
* Mendoza sworn in as Illinois comptroller
* Another year of financial uncertainty looms for Illinois
* Lawmakers sue comptroller for not paying them
* Electronic road signs are dark near Effingham due to budget
* State lawmakers vote to spare 2 nuclear plants
* Legislature OKs Exelon subsidy plan, goes to Rauner
* Rauner: No more stopgap budgets without property tax freeze, term limits

* Here's where Illinois hospitals rank in patient safety survey
* Trump jabs Boeing on Air Force One deal
* Thoma Bravo to sell software firm for $2.8 billion
* These rising stars occupy all corners of the tech world
* DRW's Wilson faces industry ban in CFTC showdown


* Former Fed official Edward W. ‘Mike’ Kelley Jr. dead at 84
* Man charged with shooting victim during robbery in Little Village
* Trump: Cancel Boeing order for new Air Force One jets over costs
* Tuesday rolls around: Contest week of Beat the Champions
* Complete list of 2017 Grammy Award nominees
* Ask Doctor K: Preventing sleep apnea also helps your heart
* CTA resumes L service on Green, Pink lines; man was on tracks
* Beyonce, Adele, Chance the Rapper, Kanye up for Grammys
* ‘Chicago Fire’ cast ‘in awe’ as NBC hit reaches 100 episodes
* Crafting a new ‘The Nutcracker’ for the Joffrey Ballet


* Supreme Court sides with Samsung in $399 million patent dispute with Apple
* Bob Odenkirk spills tequila recalling Disco Demolition Night on 'Drunk History'
* Will the White Sox complete a Chris Sale trade this week?
* Citing cost overruns, Trump says Boeing's contract to build Air Force One should be canceled
* Joe McKnight shooting: Man who shot ex-NFL player charged with manslaughter
* Grammy nominations 2017: Chance the Rapper, Beyonce lead the way
* Groupon co-founder Eric Lefkofsky sells Glencoe mansion
* Posters of Hitler, swastikas found on University of Chicago campus
* Germany's Merkel calls for widespread ban on 'full veil' Islamic coverings
* 'Game of Thrones' actor Peter Vaughan dies at 93


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* Our View: Time to tear down the YWCA building
* Our View: Time to tear down the YWCA building in downtown Springfield
* Kathleen Parker: Trump's demagogic illogic strikes again
* Mendoza on state's financial crisis: 'We're going to get out of this'
* State employee's friends, coworkers rally after stroke
* Labor board formalizes AFSCME ruling; union will fight
* Mendoza sworn in as Illinois comptroller
* Our View: Susana Mendoza, be a voice of reason for the state’s finances
* Lisa Madigan: Illinois needs to protect children from lead exposure
* Another year of financial uncertainty looms for Illinois


* Update: Missing elderly Herrin man found in Tennessee
* Sharply colder air on the move
* Warrant issued in Urbana homicide
* Bourbonnais manufacturer plans to close, lay off 86
* Factory orders up 2.7 percent in October
* Productivity up 3.1 percent in third quarter
* Trump: Cancel order for new Air Force One planes
* Grammy nominations: 9 for Beyonce, 8 each for Drake, Rihanna, Kanye
* Iraqi troops enter another IS-held neighborhood in Mosul
* Trade deficit widens in October from nearly 3-year low


* How DraftKings, FanDuel hope to woo the feds
* Grammy noms: 9 for Beyonce, 8 each for Drake, Rihanna, Kanye
* Captive Resoruces to move from Schaumburg to Itasca
* Musicians react to their Grammy nominations
* Oklahoma Supreme Court orders release of Joe Mixon video

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* A dream not to be deferred - New York Dail......

* SEIU leaders say planned Monday strike by ......

* Trump fans celebrate: "It's the most wonderful time in 8 years"
* Rauner to sign Exelon bailout bill Wednesday
* From and Chougule: Right-to-Work Zones in Deep-Blue Illinois?
* Rauner vetoes $215M deal for Chicago Public Schools, citing broken agreement
* Akin: Downstate voters send clear message: Stop lawsuit abuse in Illinois
* Good Fences Make Good Neighbors
* Holiday Goodies Now Available At Baker & Nosh
* Exelon: Guilty Of Cronyism Across State Lines
* Durbin working on bill to grant legal status to DACA immigrants
* The kingdom of heaven.


* Rauner calls on Democratic legislators to withdraw lawsuit seeking paychecks
* Illinois Department of Labor Moves Registrations to Online Format - Another step in the Rauner Administration’s efforts to modernize government
* Illinois Student Assistance Commission Announces 2017-18 Illinois State Scholars - More Than 19,300 high school students recognized for outstanding academic achievement
* Get Your Flu Shot During National Influenza Vaccination Week And Stay Healthy For The Holidays
* Thanksgiving Holiday Travel Brings Lowest Fatality Rate In Six Years




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