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.


* Reader comments closed for the weekend
* Afternoon updates
* Stop the satellite TV tax!
* *** UPDATED 1x *** Twitter suspends parody account @peoriamayor
* Lesson learned: Don't 'Leave'
* Fitch affirms Illinois GO Bond rating
* BGA: Rauner firm holds state contracts; political round-up
* Question of the Day
* CAPTION CONTEST!
* Morning Shorts
* 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

          
        * Nokia Lumia Instagramer of the Week: Sigrid Sohm
        * Incomparable
        * The Week in iPad Cases: Big grip, small hands
        * Google Nexus mid-ranger, Google Glass trials, iOS 8 features & more – Pocketnow Daily
        * 'Beats Music' Updated With In-App Subscriptions, Offline Mode and More
        * Nike Fires Majority of FuelBand Team, Plans to Stop Making Wearables
        * iBeacons Are Ready for Showtime at the Tribeca Film Festival

        * Watch the Astounding Dexterity of Honda’s Dancing Humanoid Robot
        * Twitter Real-Time Notifications: This Week in Social Media
        * Nike has reportedly fired most of its FuelBand team and is getting out of the hardware business
        * iiyama MN5040-A10-VGB Mini Tower Desktop PC
        * Spire Ridge 6602 Mid-Tower PC Case
        * Maxell MPC-CLT6600 Mobile Battery Charger
        * EIZO ColorEdge CX241 24.1-Inch LCD Monitor

        * Felipe Paulino awaits bad news after bad start
        * White Sox turn to focused Quintana vs. Rangers
        * Ramirez extends season-opening streak to 17
        * Paulino struggles in opener against Rangers
        * Rangers 12, White Sox 0: Martin Perez and Felipe Paulino, a study i...
        * Paulino struggles in opener against Rangers
        * Refreshed Abreu set to make adjustments


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

        Archives
        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


        * Reducing money's influence in politics..
        * Medicaid paid $12M for dead Illinoisans..
        * Pass sign and drive..
        * Schools could face major cuts..
        * Illinois Governor Grants 43 Clemency Requests..
        * Investigator wants tougher legislative ethics laws..


        * Boeing to give California workers $47M in back pay
        * APNewsBreak: Medicaid paid $12M for Illinois dead
        * Democrats: Illinois schools could face major cuts
        * Illinois approved for No Child Left Behind waiver
        * Cook County issues 1,000th gay marriage license
        * Investigator wants tougher legislative ethics laws
        * Illinois prisons to use costly hepatitis C drug
        * Clock ticking for states to adopt health exchanges
        * Federal lawsuit over western Md. wind farm ends
        * University: Ill. pension reform had costly mistake

        * U of I officials seeking to prevent retirement rush
        * U of I asks state legislators to prevent retirement rush; could affect 200 at UIS
        * 2015 tax rates still far from settled
        * Strip club tax brings in much less than expected
        * Quinn grants 43 clemency requests
        * Illinois approved for No Child Left Behind waiver
        * University: State pension reform had costly mistake
        * House bill urges schools to make digital emergency plans
        * Illinois Medicaid paying for dead clients
        * Rutherford's lawyers ask judge to dismiss sexual-harassment lawsuit

        * Census: People are leaving all six Chicago-area counties
        * Illinois Medicaid paying for dead clients
        * Medicaid paid $12 million for Illinois dead
        * Cook County issues 1,000th gay marriage license
        * Emanuel names task force to find site for Lucas museum


        * 2 dead, 9 wounded in shootings since Friday evening
        * 1 dead, 7 wounded in shootings since Friday evening
        * Part of man’s ear bitten off by underage girlfriend’s brother
        * City sends bike cops into high-crime neighborhoods
        * Illinois schools get waiver from No Child Left Behind progress mandate
        * Rapper Big Glo laid to rest; father vows better life for children
        * Analysis: Pension reform to cost workers $55 million by 2025
        * Painful North Side CTA bypass is right move for the future
        * Cardinal’s  exemplary courage, grace
        * PAINFUL N. SIDE CTA PLAN IS RIGHT MOVE FOR THE FUTURE


        * Man hit by car on Near North Side dies
        * West Town car chase ends in shooting, 9 others shot across city
        * Woman who suffered stroke awarded $14 million in birth control case
        * Lake County Jail inmate commits suicide
        * Past government mole arrested on federal charges
        * Mom: 15-year-old son killed in North Chicago
        * Boston Bound: Chicago couple determined to run and remember
        * Illinois legislative watchdog recommends greater transparency
        * Illinois legislative watchdog recommends greater transparency
        * Boy, 15, pulled from pond in Woodstock dies


        * Illinois Finally Gets 'No Child Left Behind' Waiver
        * U Of I: Illinois Pension Overhaul Had Costly Mistake
        * Fish fry dinners bring food, community to Catholics during Lent
        * Listen To State Week - April 18, 2014
        * Murray Center Advocates Win Appeals Decision
        * Employment Improves, But Illinois Still Lags U.S.
        * Nine Illinois lawmakers vote to fund Obama library - but only five members in attendance
        * WBEZ's Student Stories
        * Interview: John Tinker & The Landmark Case On Students' Right To Free Speech
        * State Legislation Hints At Marijuana Legalization


        * U of I asks state legislators to prevent retirement rush; could affect 200 at UIS
        * Quinn grants 43 clemency requests
        * Illinois approved for No Child Left Behind waiver
        * Illinois Medicaid paying for dead clients
        * Democrats: Illinois schools could face major cuts
        * State prisons to use costly drug for hepatitis C
        * University: State pension reform had costly mistake
        * DNR mining-oversight official fired
        * Clock ticking for states to adopt health exchanges
        * GOP lawmaker objects to 9-0 vote for Obama library


        * Dunn gets four years for involuntary manslaugther
        * Good Friday marked with Way of the Cross
        * Three Tilden residents face meth charges
        * Sugary drink tax bitter for some
        * Two Pomona residents face meth charges
        * UI-Carle med school partnership urged
        * Who lives here? April 19, 2014
        * Woman kept positive spirit after being hit by drunk driver
        * Nothing wrong with a little 'tree bling'
        * 'Insurgent educator' to talk urban farming


        * The 10th District money race
        * Aurora Democrat calls out IHSA
        * Lawyers: Ill. hazing law vague, unconstitutional
        * Ill. House OKs lower-cost hunting bill for seniors
        * Quinn’s running mate takes new consulting job

        * Aaron Schock selfies from the audience at ...
        * Susan G. Komen Global Race for the Cure® A...
        * Schock Praises Illinois Counties for Top N...
        * GOP House Dinner boosts Rep. Aaron Schock ...
        * Rep. Aaron Schock in Japan, China, South K...
        * Lewis lauds Dirksen's role in civil rights...
        * Schock opponent Darrel Miller speaks to te...
        * Congressman Wants IRS Official Prosecuted ...
        * Representative Aaron Schock on Tax Reform ...
        * Schock: IRS official should be prosecuted ...

        * Loading Koch Industries Website Too Many T......
        * Maryland and DC among worst for food aller......
        * Cleveland State University to reestablish ......
        * Convicted political boss Al Sanchez runnin......
        * Candidates make last filings for local, st......

        * Illinois Lt. Gov. Simon opposes pension le......
        * Dillard Odd Man Out on Pension Deal Reaction...
        * Sen. Mark Kirk sides with Rauner on pensio......
        * Governor's race infighting threatens pensi......
        * SCHOONERS - Home of Everyone's Favorite Be......

        * ComEd seeks another rate hike to help pay for its "Smart Grid"
        * 1000th same sex couple marries in Cook County
        * East Chicago Blues
        * The Weekend Desk Report
        * Ben Joravsky tells us where the pension money went. And who spent it.
        * Keeping retirement weird. Stopping the Tom Foolery.
        * Three Marquette University fraternities facing sexual misconduct charges
        * Sen. Durbin's e-cig restrictions 'For The Children' could be deadly for adults
        * The [Wednesday] Papers
        * Joel Quenneville's Horse Just May Make It To The Kentucky Derby After All


        * Governor Pat Quinn Takes Clemency Action
        * Proposed Rules for Compassionate Use of Medical Cannabis Pilot Program Act Filed
        * Adopt-A-Highway Spring Cleanup Begins Today - Annual Event Honors Earth Day, Tackles Roadside Litter After Harsh Winter
        * Illinois Schools Win No Child Left Behind Waiver - Federal Government Approves Flexibility Needed for Successful Implementation of State Strategies to Improve Student Learning
        * Illinois filmmakers invited to enter state’s Shortcuts competition - 7th year for Illinois Film Office contest honoring local talent




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