As I told you yesterday, Lt. Gov. Pat Quinn has come out in opposition to the governor’s gross receipts tax on business. There’s more today…
Quinn said he cannot support the governor’s proposed gross receipts tax, a lynchpin of Blagojevich’s 2008 state spending plan, because it is “regressive,” unfairly targets the working class, and provides no tax relief.
“I really don’t think this is a fair approach,” Quinn said.
Instead, Quinn proposed a competing plan that would target untapped “corporate loopholes” that he said could generate as much as $2 billion a year to be split equally between schools, health insurance and tax relief.
“I’d hope we could go to Plan B, and come up with a tax fairness plan that incorporates some of the ideas I’ve expressed,” the lieutenant governor said during an interview with the Chicago Sun-Times.
More from the AP…
“The businesses pass it on. The ultimate consumer at the store suffers the burden,'’ [Quinn] said in a telephone interview. “The notion that everyday people will be exempt from this levy is not correct at all.'’
The Daily Herald has a bit of history…
The debate creates the somewhat unusual situation of a governor and his running mate publicly feuding over tax policies, something not seen since the mid-1980s when then-Republican Gov. James Thompson pushed an income tax increase and his lieutenant governor, George Ryan, came out against it.
Phil Kadner has the best lede…
Lt. Gov. Patrick Quinn shouted that the governor of Illinois isn’t wearing any clothes.
And then ends his column this way…
So now we have two school funding reform plans.
The income tax plan and the gross receipts tax plan.
It’s looking more and more like the House will pass one version and the Senate another.
If that happens, the governor won’t have to sign or veto anything.
All of the state’s elected leaders will be able to claim they did something, when in fact they accomplished nothing.
That’s called political cover in the state capitol.
Quinn has chosen to expose the governor.
But the opposition didn’t come from just Pat Quinn. Comptroller Dan Hynes and Treasure Alexi Giannoulias both expressed strong reservations yesterday…
Comptroller Dan Hynes and Treasurer Alexi Giannoulias say they’re concerned about the Democratic governor’s desire to tax nearly all business transactions in the state. Hynes also criticized one of Blagojevich’s proposed uses for the revenue - universal health insurance - saying the state needs to first fix problems with the existing Medicaid system.
The Blagojevich administration said the officials are reacting to pressure from the business community. […]
“I think there is some sense of a lack of fairness in our tax structure as relates to how much corporations or businesses pay versus the individual,” said Hynes, comptroller for the past eight years. “I don’t think it’s quite as dramatic or drastic as it’s being portrayed.” […]
“I’m concerned they’ll end up leaving the state or going out of business, frankly,” Giannoulias said. “I understand the governor’s desire to help the working class and middle-income people, but I think … businesses are only going to take a certain amount of hits before they start passing these things on to consumers.”
But, wait, there’s more. Sen. James Meeks (D-Chicago) is also not a happy man…
In another development that could complicate passage of a state budget, a top leader of the Illinois Legislative Black Caucus told the Sun-Times that his group will withhold support for a budget unless it has four full days to review its details prior to a vote.
“We don’t want a middle-of-the-night vote,” said Sen. James Meeks (D-Chicago), joint chairman of the caucus.
Meeks had a lot more to say than that. Check out this audio clip, supplied by our good friends at Metro Networks. It’s pretty harsh and is a must-listen…
[audio:Meeks3-21.mp3]
Comptroller Hynes’ comments can be heard here…
[audio:Hynes3-21.mp3]
Treasurer Giannoulias’ comments are here…
[audio:Giannoulias3-21.mp3]
More…
* Blagojevich tax plan takes hits from both sides
“‘Lie’ is a strong word, but it’s a great mystery as to what happens over there,” [Hynes] said at a Statehouse news conference.
* Governor pushes “Tax Fairness”
Key Democrats oppose governor’s tax hike plan
*** UPDATE *** Here’s a snip from Quinn’s press conference today, supplied by Metro Networks…
[audio:Quinn322.mp3]
- Councilman Sinnock Online - Thursday, Mar 22, 07 @ 9:36 am:
Illinois is officially a solid blue state. The Republicans have taken themselves out of the future electoral equation. The Dems have started to position themselves for a future primary against the Gov. Whoever wins the Democratic primaries will be the favorites in the General Elections. There is now a little less reason for the others to play nice with the Governor.
- Just Wonderin' - Thursday, Mar 22, 07 @ 9:50 am:
So, it’s beginning to look as though the only ones in favor of GRT is GRod, Filan, and…Bill! LOL
- Carl Nyberg - Thursday, Mar 22, 07 @ 10:04 am:
It’s hard to take the GRT plan seriously if Blagojevich didn’t obtain more support prior to going public.
At best it looks like proposing something radical to facilitate passing something more moderate.
At worst it looks like a political move so Blagojevich can endear himself to Lefty activists who want to implement universal health care and increase money available for schools.
- Jim in Accounting - Thursday, Mar 22, 07 @ 10:19 am:
Has anyone asked Jack Lavin what he thinks? Should be interesting. “Opportunity Returns”, indeed.
Perhaps they should change that to “Opportunity Returns, Gets Beaten With the Tax Stick, and Heads to Indiana.”
- VanillaMan - Thursday, Mar 22, 07 @ 10:22 am:
What we are seeing is how a guy who knows how to campaign, but not govern, try to create policy.
Even after four years, Blagojevich still hasn’t grown into his job - or even shown up to work.
Once elected, most governors govern. Blagojevich hasn’t been interested in doing that. He likes campaigning.
So he shows up with an Annual Budget Address with no government team to get his budget passed. He shows up instead with his inner circle of campaign cronies and newly cut TV ads and mailers, denouncing his perceived opposition and calling for “fairness”.
He obviously spent more time coming up with a campaign strategy than a governing one.
We can’t do this, people! We are not in a position to have a governor fail. In times like these, we have to have a winner, regardless of party. Blagojevich can’t do his job!
It is so blantantly obvious his own party leaders are turning to one another to circumvent him after only four months into his second term.
Blagojevich makes Dan Walker look like a genius, doesn’t he? This is not a good thing for anyone.
- Siyotanka - Thursday, Mar 22, 07 @ 10:46 am:
Ok…so we get on with indicments…and the Lt. Gov. becomes Gov. We get a compromise (hopefully) through the Legislature…thanks to cooler heads…and Gov. Quinn looks like the Knight in Shining Armor…bye-bye…Rod
- Dieter - Thursday, Mar 22, 07 @ 10:46 am:
Illinois will remain a blue state, unless an indictment changes things, just like it did with George Ryan.
This GRT is foolish. Companies will re-locate or cut their employee base. How do you think the former employees will vote in the next election?
- Levois - Thursday, Mar 22, 07 @ 10:54 am:
Hmmm, I wonder if the governor is going to waiver if he is going to insist that nothing else is on the table unless his tax fairness, health care and education plan is voted in the affirmitive?
- leigh - Thursday, Mar 22, 07 @ 11:05 am:
Am I alone in being kind of shocked that the gov doesn’t really have the support of anyone except Jones? Sorry to reuse a tag line, but “what was he thinking?”
- RMW Stanford - Thursday, Mar 22, 07 @ 11:20 am:
So are Quinn, Hynes, Giannoulias and Meeks all agents of big business and the Chamber of Commerce? Some how I doubt it, they just have enough common sense to see that this is bad for the state. For Democrat party the danger is if the Governor goes throe with his threat not to let anything else get done and there is a backlash against all Democrats
- Tom - Thursday, Mar 22, 07 @ 11:40 am:
I think the GRT is just a ruse to get legislators and businesses behind HB750/SB750. With greater political cover Rod can back off his no income tax increase pledge.
- Oops! - Thursday, Mar 22, 07 @ 11:58 am:
It’s about time somebody started to thinking clearly!
Milarod: TICK! TICK! TICK!
- Bill, of Goods - Thursday, Mar 22, 07 @ 12:41 pm:
These greedy people need to have a moment of silence and realize what our great Governor, praise his name, is actually doing for them.
He is pushing for education, health care, and will tackle those evil guns next. Then we will be right for Kingdom and the second coming.
Amen. I can’t wait.
To those who doubt the wisdom of this, understand we are talking about the state here. Remember, the state is as God walking on the earth. Rod is just using the state government to do God’s work in preparing the Kingdom.
Didn’t you learn in school that’s what this country was founded for? Yes, to do what God wants. But you didn’t learn that in school. That’s why Rod wants to fix education.
We should also expand the moment of silence in schools to s couple of hours, ideally just after lunch. The pious can pray, the atheists can have a siesta and the teachers can get overtime.
Like the book says, let the church roll on. The gates of hell shall not prevail against the Governor.
Amen and amen!!!!
Pingback ArchPundit » Blog Archive » The Kid is All Right - Thursday, Mar 22, 07 @ 1:31 pm:
[…] And today, he pushes back against the Governor’s really stupid idea. […]
- Willowbrook - Thursday, Mar 22, 07 @ 1:58 pm:
Bill, of Goods - Thursday, Mar 22, 07 @ 12:41 pm
Does God support the corruption that is and surrounds Governor Blagojevich? I think not!
- Decatur Dave - Thursday, Mar 22, 07 @ 4:07 pm:
Vanilla- This is truly LOL: Blagojevich makes Dan Walker look like a genius!!! You don’t hear Danny Boy’s name often anymore, but people forget he was considered the Worst Governor Ever. Now it appears he has some competition. Maybe Blago could walk across the state to promote Tax Fairness??
- A Citizen - Thursday, Mar 22, 07 @ 4:30 pm:
A constant though subtle subtheme running through comments here since the GRT proposal is that it is so outrageous that the huge smokescreen it generates allows for a significant behind the scenes development of legislation to raise Sales and Income Taxes. That, in the closing hours, will race through both chambers and be a fete accompli before you know what hit you. Blago, with no alternative but to shut down state government for lack of a budget will be seen being perp walked into the Autopen chambers and pushing the On button. And SO against his every fiber he will reluctantly and apologetically bend to the will of the people as represented in their legislature. There you have it! NO leadership required, and mission accomplished.
- Papa Legba - Thursday, Mar 22, 07 @ 5:29 pm:
The GRT did what Blago wanted it to do. It got him positive press with the common people.
People on the street, the ones who don’t really follow these things, believe this has happened. The good things that is. You know, health care, more money for education, blah, blah.
Rod now looks like a champion for the people for what he has *done* for the little people of Illinois, but this fantasy will never come to fruition.
- Buck Naked - Thursday, Mar 22, 07 @ 6:38 pm:
Rich, what would a gross receipts tax meanto your business?
- stateworker w/ MBA - Thursday, Mar 22, 07 @ 7:59 pm:
Not GRt related but yesterday we were deliveried brand new HON 2 shelf bookcases. Probably close to 100 in our area. Problem is none of the people actually doing the work want them.
In order to fit into our cubicles we had to stack them on top of bookcases we already have. They stand a good foot taller than the partition and now we can not even see the person sitting in front of us.
Today we get an email telling us that if we list items for sale on the bulletin board by the entrance to the building (seen only by employees) we can not use our work phone number because it is mis-use of state property and resources. Come on give me a break.
Also if I email a friend who works in the building and ask a none work related question (Like - going to the gym tonight after work?) it is considered a mis-use of property and resources subject to discipline.
Crazy man Crazy.
- Rich Miller - Thursday, Mar 22, 07 @ 8:17 pm:
BN, the tax only hits gross receipts over a million dollars. I ain’t there yet. Far from it.
- A Citizen - Thursday, Mar 22, 07 @ 8:22 pm:
Sounds like the OIEG is com’n to visit. Watch your arrival, departure, and break times and for sure triple check your travel voucher! The GOONS have arrived and are on a witch hunt. Good Luck
- Proverb - Thursday, Mar 22, 07 @ 10:19 pm:
Meeks, you knew he was a snake when you took him in, silly. You should have run when you had the opportunity; whatever the result of that, it would have been better than what we have now. But you blew it, and really, what good are you to anyone but your congregation now?
- mean people suck - Thursday, Mar 22, 07 @ 10:54 pm:
Ever since Dawn Clark Netsch ran for governor the chattering classes have been moaning that the state is underfunded and needs more revenue to right structural imbalences. GRod wins big (all u whiners did see the vote totals didn’t u?) & then Stands up tall takes a breath and preposes a large tax increase. the tax has a very broad base and a relatively low rate (classic good tax policey) and now the Governor doesn’t have a friend in Springfield. Eden Martin where are u? several months ago on WTTW u took John Filan to task for not raising taxes!
- Mark Stanley - Friday, Mar 23, 07 @ 6:28 am:
Congratulations to Illinois Lt. Governor Pat Quinn, Illinois Comptroller Dan Hynes, and Illinois State Treasurer Alex Ginannoulis, for publicly raising questions about the Governor’s current Business Tax Plan and the negative impact that it may have on poor people. I am upset that so many Minister’s that have reputations for being advocates for the least of God’s people who so aggressively support the Governors Business Tax plan without having any major forums or discussions with the people who may suffer from the result of current plan, the consumers.
I am a longtime advocate for education funding, but at the same time there is currently too much talk about the positive influx of education funding, but not at the expense of poor people who may lose their jobs or the consumers from low and very low income communities on fixed incomes. It is a serious leadership mistake not to publicly discuss the fact that that no matter what tax loopholes that the tax plan covers, businesses will raise the price of their products that ultimately hit the consumers, and no one is making this poor constituency aware and prepared for the impact of what happens when prices for goods and services go up in poor neighborhoods. Without preparation, far too many poor people will be forced into the area of illegal economies trying to make ends meet. The Governors tax plan must be addressed to make sure that while we get new money for education, that it is not also creating more unemployment and even worse, directing more poor people at environments that will make them a part of the criminal justice system.
The Black Leadership Development Institute, BLDI has been in contact with several activists and will be contacting a number of agencies and advocates for the poor and we will plan a poor people’s campaign as it relates to how the Governor’s Business Tax plan in its current form will negatively impact poor people. It’s hard to believe that the fears of the poor consumers that has already been publicly expressed have not been heard by the supportive ministers and the Governor’s various liaison’s to the poor communities. Well, I have heard them clearly and so have others and we will develop this poor peoples campaign to balance this current debate over the Governors Business Tax plan and the possible negative impacts on the poor consumers of this city and state. Business has always paid for their increases in taxes or operating expenses by passing it on to the consumers, and it will happen now. This poor people’s campaign will seek to lift up the fears of the poor and balance this current debate over this Business Tax proposal.
Thursday, March 22, 2007
Mark S. Allen
Founder/President
The Black Leadership Development Institute, BLDI
www.bldi.pacnetsites.com
773-776-8353 or direct 773-392-0165
Associate Editor
The South Street Journal Newspaper (55,000 Chicago weekly)
773-373-7000
- IveBeenThere - Monday, Mar 26, 07 @ 6:36 pm:
Quinn, the wannabe so bad it hurts, Hynes the perennial loser and the new kid………great folks to follow on this issue.
- Mark Stanley - Monday, Mar 26, 07 @ 8:13 pm:
The record will reflect that I and other community leaders were on this poor people’s piece but did not get the media attention, so if these person got the matter before the public in a better way than we were able to do, then I’ll publicly commend that. Now the matter is being discussed at the grassroots level in my community that was not before, but it’s unfortunate that the Black leadership that used to be the advocates for the poor were already endoirsing the governors original plan.