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.


* New Quinn ad sparks Dem criticism
* Beware October
* Question of the day
* Quinn signs millionaire's tax referendum
* Today's map
* Thanks, but I'll pass
* Roberts appointment questioned
* Poll: Rauner has 14-point lead
* Today's rant
* *** UPDATED x2 *** Quinn campaign goes up with first TV ad of the season
* 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

          
        * Facebook only wants you to chat using its messenger app from now on
        * Atheer Labs Releases A First Enterprise Developer Kit For Its 3D, Wearable Glasses
        * Facebook pushing mobile users to use Messenger app
        * SwiftKey update brings enhancements, new languages, more themes
        * ExaGear Strategies is an emulator for classic RTS games
        * Kindle for iOS Updated With Syncing and Navigation Improvements
        * Samsung Galaxy Alpha now leaked with 4.8-inch HD screen

        * How "Fatal Attraction" Negatively Affects Your Relationships
        * Microsoft and Intel Team Up to Launch a Raspberry Pi-Like Windows PC
        * Spotify (iOS) Gets an Equalizer to Give You Sonic Control
        * Police are Replacing Ads on Some Torrent Sites With Warnings
        * Nokia tinkers with the idea of turning LTE into a TV broadcast network
        * Privacy advocates want regulators to go after Facebook
        * Better Open With Improves Android's App Chooser with Delayed Defaults

        * White Sox trade rumors: John Danks-Yankees rumors persist
        * Podcast: Big Hurt, HOF
        * Frank Thomas lets it out, lets everybody in during Hall of Fame speech
        * This Week in White Sox Minor League Baseball
        * White Sox Minor League Update: July 27-Aug. 2
        * New draftee Rodon tops White Sox updated Top 20
        * White Sox focused on long-term at Trade Deadline


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

        Archives
        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


        * Illinois to ask voters about taxing millionaire.....
        * CHART: Top contributors to governor's race by t.....
        * Chicago telephone tax to rise by 56 percent to .....
        * Firefighter jobs: What returning vets must know.....
        * Quinn debuts first television ad touting state'.....
        * Poll shows power of message on global warming -.....
        * Should A Controversial Oregon Timber Harvest Be.....
        * Playing the ‘gotcha’ game in Springfield..


        * NIU, San Diego State set games in 2016, '17
        * Illinois to ask voters about taxing millionaires
        * Rock Island official wants probe of allegations
        * Illinois warns insurers of discrimination ban
        * NCAA settles head-injury suit, will change rules
        * Summary of NCAA head-injury settlement
        * Lawsuit against Quinn back in court in October
        * NDSU picked to win Missouri Valley football crown
        * Excavation finds courthouse where Lincoln worked
        * Stories of athletes named in NCAA lawsuit

        * Emails raise questions of politics in Quinn's anti-violence program
        * Quinn OKs ballot question on tax hike for incomes over $1M
        * Lawsuit against Quinn back in court in October
        * Illinois to ask voters about taxing millionaires
        * Illinois patients to docs: 'What about marijuana?'
        * Illinois State Fair manager fined by ethics commission for accepting free beer tickets
        * Sangamon County on its own for road salt
        * Sangamon County on its own for winter road salt
        * Lawyers will push to speed up pension reform ruling
        * Quinn says state EPA will block PCBs from Clinton landfill

        * McDonald's: Regulator says it's a 'joint employer'
        * JPMorgan cuts hundreds of tech workers
        * JPMorgan cuts tech worker jobs, including in Chicago
        * Introducing Woof, the warm and fuzzy app for adopting stray pets
        * Uniqlo opening store on the Magnificent Mile


        * City to pay $1.2M to family of prep sports star fatally shot by cop
        * Watchdog needs independence
        * West Side alderman rips Emanuel for missing Shamiya Adams’ funeral
        * Architectural team for Lucas museum includes woman behind Aqua Tower
        * Despite DUI convictions, ex-deputy keeps job, could retire with full pension
        * State Police: Ald. Rey Colon pulled over on Ike, accused of DUI
        * Ethics panel raps fair directors for violating ban on gifts
        * Police marine unit plucks woman from lake after watercraft flips
        * Addison woman, 2 daughters shot during robbery in Hammond
        * $2 million bail for man charged in fatal shooting of cabdriver


        * 'Millionaire tax' question to appear on fall ballot
        * Chicago aldermen endorse higher phone fees
        * 2 held on $1.5M bail in killing during botched drug deal
        * Man fights Wisconsin lottery over misprinted tickets
        * 2 wounded in separate shootings
        * No bail for 15-year-old charged with killing another teen
        * Body found on Whiting beach may be missing boater
        * Chicago aldermen endorse higher phone fees
        * NCAA reaches $75 million settlement in concussion lawsuit
        * Water Tower park to be be renamed for Jane Byrne


        * Excavation Finds Courthouse Where Lincoln Worked
        * State Fair Officials Fined For Violating Gift Ban...For Beer Tickets
        * Inspector General Finds Old Metra Practice Could Lead To Fatigued Conductors
        * Exoneree Diaries: "You've got anger issues, Dad."
        * Clout On The Business Side of Medical Marijuana
        * So, when is it Jane Byrne's turn?
        * State Police Cancels New Trooper Training, Citing Budget
        * Feds' Immigrant Numbers For Illinois May Not Tell Whole Story
        * Listen to State Week - July 25, 2014
        * Inspector General Discloses Political Hiring Investigation


        * Lawsuit against Quinn back in court in October
        * Quinn OKs ballot question on tax hike for incomes over $1M
        * Sangamon County on its own for road salt
        * Illinois State Fair manager fined by ethics commission for accepting free beer tickets
        * Me Inc. offers plenty of dividends
        * Quinn says state EPA will block PCBs from Clinton landfill
        * Regulators say Illinois doctor faked pot paperwork
        * Illinois communities scramble to find road salt
        * New law expands state Holocaust Commission
        * Quinn, Rauner budget plans debatable


        * St. Clair County brings legal settlements into the open
        * Nominees sought for Illinois distinguished seniors
        * Ex-Urbana High star ordered to repay $16,578
        * Shorewood man's love of TV began at village hall
        * Officer shot, suspect killed near Pana
        * Workers sever gas line in east Belleville
        * Fire destroys Sullivan restaurant
        * Illinois boy to meet Coast Guard rescuers
        * Davis, Enyart support deal to fix VA health care system
        * Road closure for part of 22nd Street


        * Palatine man charged with murder after punch victim dies
        * New uses for 2 former restaurant sites in Bloomingdale
        * Senate confirms McDonald as VA secretary
        * Looking back on 50 years of the Hoffman Estates Park District
        * First Fridays returns to downtown Aurora on Aug. 1

        * Congressman wants to end CHA “supervoucher...
        * A Bipartisan Argument for Full-Service Com...
        * Republican congressman seeks to end Chicag...
        * Schock Calls for Investigation into Chicag...
        * Was Rauner consultant behind anti-Schock a...
        * Hoyer, Schock Op-Ed: A Bipartisan Argument...
        * Full-service schools could benefit from le...
        * Schock helps introduce 'full-service schoo...
        * Scaletta Armoring Hosts Congressman Dan Li...
        * Congressmen Hoyer and Schock introduce Com...

        * Inversion opponents want federal contracts......
        * Inversion opponents want federal contracts......
        * Inversion opponents want federal contracts......
        * Durbin introduces bill to curb corporate i......
        * Durbin introduces bill to curb corporate i......

        * How Partisanship Could Save Iran Diplomacy......
        * Kirk optimistic about new plan to fix the VA...

        * Stantis: Obama's focus
        * Pension crisis and proposed solutions discussed on Chicago Tonight [video]
        * Over 7,800 state employees made over $100K last year, up by 1,200
        * Oberweis inches closer to Durbin
        * Report Says Surveillance Is Hampering Journalists
        * Chicago Community Meeting On Future Of Dyett High School
        * Lawsuit Against Quinn Back In Court In October
        * Illinois To Ask Voters About Taxing Millionaires
        * Despite violating gift ban, Illinois state fair manager keeps government job
        * Never be late for a job interview...


        * Pat Quinn’s Reality Check
        * Governor Quinn Signs Legislation to Give Public a Voice Regarding Millionaire Tax for Classroom Education - Law Establishes a Statewide Advisory Referendum on Nov. 4 Ballot
        * DOI Calls for Health Insurers to Bar Discrimination Based on Transgender Status or Gender Identity - Insurers Are Instructed to Remove Exclusions of Coverage Based on Gender Identity in Plans Offered Under ACA
        * Hoy Op-Ed on Immigration
        * Governor Quinn Reminds Drivers to Take Caution in Work Zones, Directs State Agencies to Redouble Efforts to Protect Public and Workers - Encourages Public to Increase Vigilance Following I-55 Tragedy




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