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
* SUBSCRIBERS ONLY - Today's cable TV buys
* *** UPDATED x1 - Griffin gives another million *** Rauner giving more cash to state GOP
* Question of the day
* Schimpf trying to raise money to air radio spot
* This is what you'd call a "tell"
* #QsforQuinn
* Frerichs wants Cross to call off the state party dogs
* Rauner Internet ad pairs Quinn with Blagojevich
* Bost claims poll shows him up by 4
* More than just unclear on the concept
* Quinn: "Everybody in? I'm driving"
* The sleep gap
* DCCC releases second Bost "rant" ad
* 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

          
        * Dropping the iPhone 6, reviewing the Moto X, and drooling over HTC Rumors | Pocketnow Weekly 114
        * iPhone 6 Plus tear down, Gear payments, Google’s Active Watching & more – Pocketnow Daily
        * iPhone 6 and 6 Plus Out-Of-Warranty Repairs Cost Up to $299/$329
        * Verizon Will Be Getting iPhone 6-Friendly Wi-Fi Calling In 2015
        * Apple iPhone 6 unboxing: it’s about the feels (Video)
        * Tintag rechargeable item tracker hits Indiegogo
        * Microsoft’s new Windows app videos might hint at that no-more-Phone rebranding

        * Inside Alibaba’s Lavish IPO After-Party — Video! Audio! Photos! Shrimp!
        * Swatch’s Co-Inventor Thinks Swiss Watch Industry Might Have Missed The Smartwatch Boat
        * Apple Hit With Lawsuit Over FaceTime Patents
        * NVIDIA GPU & Physically Based Lighting Show “Moon Landing Was Real”
        * iPhone 6 Currently Outselling The iPhone 6 Plus
        * Apple Watch Charging Stands Already Up For Pre-Order
        * Companies Reportedly Rushing To Get In On Apple Pay

        * Konerko back in action for final 10 games
        * Offense helps Quintana overcome early lapses
        * Noesi tries to block Rays at Tropicana Field
        * White Sox 4, Rays 3: Fifth-inning outburst enough for Jose Quintana
        * Offense helps Quintana overcome early lapses
        * Konerko back in action for final 10 games
        * Updates: Former White Sox playing meaningful September baseball


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

        Archives
        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


        * Mayor Emanuel, Governor Pat Quinn, Secretary Of.....
        * Jobless Rate Down Sharply..
        * Illinois Governor Candidates Trade Jabs..
        * Rauner announces endorsement from Illinois Cham.....


        * Spokane's Cupich to be next Chicago archbishop
        * Quinn: No pension 'plan B' before court ruling
        * 4 charged in shooting death of Chicago 9-year-old
        * Ind. Toll Road operator plans to file bankruptcy
        * Charges announced in shooting death of 9-year-old
        * Illinois awards $25.8M in health outreach grants
        * Elgin police aim to recruit Spanish-speakers
        * Fallon to pay up, broadcast show in Chicago
        * Prostitution sting leads to 13 arrests in Paducah
        * Board chairman defends UI job denial to professor

        * Quinn: No pension ‘Plan B’ before court ruling
        * Sangamon Co. judge: Libertarian candidate for governor can stay on ballot
        * Illinois’ jobless rate continues 6-month decline
        * GOP’s Rauner no fan of gambling, airport slots
        * GOP’s Rauner no fan of gambling, airport slots
        * Jeb Bush headlining Chicago fundraiser for Rauner
        * Rochester resident to lead State Board of Elections
        * GOP appeal seeks to knock Libertarian gubernatorial candidate off ballot
        * Jesse White to focus on technology, highway safety if re-elected
        * Rauner’s ethics reform plan targets lobbyists, lawmakers

        * AP: Spokane bishop to replace Cardinal George
        * Illinois awards $25.8 million in health outreach grants
        * Flight attendants reach tentative deal with American Airlines
        * Options Clearing Corp. CEO to retire
        * Fallon to pay up, broadcast show in Chicago


        * AP: Bishop Blase Cupich of Spokane will be Cardinal Francis George successor
        * Reports: Bishop Blase Cupich of Spokane will be Cardinal Francis George successor
        * Jesse White Tumbler shot to death
        * Four charged in shooting death of 9-year-old
        * Seminars, fairs aimed to help with ‘confusing’ CPS enrollment process
        * Apple fans answer the iPhone’s call
        * Hey, Mayor Rahm Emanuel, lend us your ear
        * Why Chicago excites Jimmy Fallon


        * At least 8 wounded in city shootings
        * Reports: Spokane bishop to succeed Cardinal George as Chicago archbishop
        * Police: Gang members thought boy, 9, was warning rivals and killed him
        * Evanston man diagnosed with West Nile virus
        * Former Harvey schools chief gets probation for misconduct, theft of $78,000
        * Chicago River fall bridge lifts start Saturday
        * Day after appearance at Native American group, Rauner won't say if Redskins' name should change
        * Boy, 16, fatally shot in Old Town was member of Jesse White Tumblers
        * Prosecutors want to try as adult girl charged in Endia Martin's slaying
        * Girl rescued from retention basin near Plainfield middle school


        * Cupich to be next Chicago archbishop
        * Treasurer Candidate Tom Cross Says He Would Sue The Legislature To Force A Balanced Budget
        * Listen to State Week - September 19, 2014
        * Quinn Defends Public Education, Though He's A Product of Private Schools
        * Chris Mooney: More Evidence-Based Policymaking Needed
        * African Drumming At Southwind Park On Saturday
        * Investors gather in Chicago seeking cannabis businesses
        * Climate, Space Create Challenges For Local Food
        * Can A Governor Really Create Jobs?
        * How do you find high school dropouts?


        * Deborah Davis: NFL sends mixed messages over Ray Rice case
        * Charles Krauthammer: The jihadi logic
        * Quinn: No pension ‘Plan B’ before court ruling
        * Sangamon Co. judge: Libertarian candidate for governor can stay on ballot
        * Our Opinion: Anchor’s cancer struggle hits home
        * Bob Gilligan: Advisory questions seek voter input — sort of
        * Illinois’ jobless rate continues 6-month decline
        * GOP’s Rauner no fan of gambling, airport slots
        * Esther Cepeda: Pity the vanishing bobolink
        * Jeb Bush headlining Chicago fundraiser for Rauner


        * Upcoming Services (Sept. 20, 2014)
        * Looking Back (Sept. 20, 2014)
        * Police reports
        * Undercover minors aid alcohol, tobacco compliance
        * Men rally to make difference in city
        * Milford/Cissna Park trounces Westville
        * Rantoul can't build off strong half
        * Tri-Valley routs Ridgeview/Blue Ridge
        * Broncos cruise to win
        * Purple Riders shut out A-O


        * Second-half surge lifts Zion-Benton past Round Lake
        * Victory smells sweet to Glenbard North
        * Police: Palatine woman held burglar at gunpoint
        * Big plays power Addison Trail past Leyden
        * Special teams put Glenbard South in position for win

        * 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...
        * Representative Jan Schakowsky Statement on...
        * Rep. Jan Schakowsky discounts threat from ...
        * Representative Jan Schakowsky Statement on...
        * Schakowsky backs striking workers at Juno ...
        * U.S. Rep. Schakowsky Gearing Up For Novemb...

        * Senator Durbin Announces More Than $2.7 Mi......
        * Northwestern receives federal grant to fig......
        * Northwestern receives federal grant to fig......
        * Northwestern receives federal grant to fig......
        * Northwestern receives federal grant to fig......

        * Durbin, Oberweis See Eye to Eye on Obama's......
        * Senate unanimously confirms John Bass as t......

        * The Weekend Desk Report
        * Cubs pick up yet another ex-Sox minor league affiliate for organization
        * Addressing Mental Illness in the Justice System Cook County Sheriff Tom Dart
        * Common Core Math Standards Add Up To Big Money For Education Companies
        * The Beachwood Radio Sports Hour #18: Return To Bear Mountain!
        * Hooray for cartoonists.
        * Swiffers. My days as a custodian.
        * GCA community forum with Karen Lewis
        * Illinois Job Creators: Do-Rite Die & Engineering's Alan Szymanski
        * UPS to hire 8,700 in Chicagoland


        * Illinois Chamber of Commerce Endorses Rauner for Governor
        * Rauner Web Ad: “Cut from the Same Cloth”
        * Illinois Department of Human Rights Commemorates International Day of Peace
        * Quinn Misleads Public on IDOT Again
        * Governor Quinn Visits Chicago’s Hydro, Inc. as Illinois’ Unemployment Rate Continues to Drop - State Jobless Rate Reaches Lowest Level in Six Years




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