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.


* *** UPDATED x1 *** Get ready for more heated rhetoric
* Rauner wants fewer managed care companies to serve lots more Medicaid clients
* Question of the day
* What's with the secrecy?
* Pawar on Madigan
* It's just a bill
* "I don't know what else they can do but go on strike"
* Trib defends Rauner's tenure
* Biss to decide on bid soon
* Rauner skips White House dinner attended by 46 governors
* Emulate Trump at your peril
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

...............
<


Loading


* Chance the Rapper to discuss Chicago education .....
* Chance the Rapper, Rauner to talk Chicago schoo.....
* Chance the Rapper, Rauner to talk Chicago schoo.....
* Chance the Rapper, Rauner to Talk Chicago Schoo.....
* Gov. Rauner wants more Medicaid clients on mana.....
* Trump Targets Chicago Crime After Rauner Skips .....
* Rauner, Chance the Rapper to talk Chicago schoo.....
* Rauner, Chance the Rapper to talk Chicago schoo.....


* Illinois town in Trump territory backs detained immigrant
* Chance the Rapper, Rauner to talk Chicago school funding
* Chicago schools continue effort in court to get more funds
* Cairo housing complex residents report poor conditions
* Judge: Probation for Cook County clerk's office employee
* United adds Denver, Chicago flights at Columbia
* Gov. Rauner wants more Medicaid clients on managed care
* Illinois town in Trump territory backs detained immigrant
* Doctors warn against teen pot use amid looser marijuana laws
* United Airlines' new destinations include Champaign

* Rauner, Chance the Rapper to talk Chicago school funding
* United announces plans for more flights, new destinations
* Gov. Rauner wants more Medicaid clients on managed care
* Sanctuary issue draws dueling demonstrations to Capitol
* Rauner's office: Gov spends 55% of Illinois nights at Mansion
* Report: State senator's law firm dealings under scrutiny
* Durbin wants open look at Russian involvement in election
* Trump puts moderate GOP governors in awkward spot
* Economic stakes high for Springfield in labor showdown
* AFSCME authorizes strike, but still wants to bargain with Rauner

* Oscars oops could spell lasting brand damage for PricewaterhouseCoopers
* Trump promises 'something special' on health care before speech
* CPS might end school year weeks early: reports
* Rauner scraps Medicaid managed care, outlines new plan


* Tankers beware: Copying Cubs process ain’t cheap – or guaranteed
* 2 men shot in East Garfield Park
* Brown: Jesse Jr. a mix of confidence, confusion, anger, self-pity
* Home care aide providers convicted for defrauding Medicaid funds
* DCFS investigating death of 2-year-old boy in Rogers Park
* SpaceX says it will fly 2 people to moon next year
* Chicago murder suspect mistakenly released by IDOC in Will County
* Cub game report: Important step for Anderson in spring debut
* Rauner wants more Medicaid clients on managed care
* Tag, you’re not it: Bears prepare for Alshon Jeffery’s farewell


* Duckworth: I'll work with Trump on transportation spending plan
* By not tagging Alshon Jeffery, Bears opt to play receiver market
* 1 dead, 5 injured as small plane crashes into two homes in California
* White Sox rebuild hinges on strong, young arms
* Joe Maddon says Cubs have more young talent on the way
* NFL combine storylines to watch: Start with quarterbacks
* 'Gary from Chicago' won't appear on 'Jimmy Kimmel Live' on Monday
* Rick Renteria's return to Cubs complex sparks talk of a beer with Joe Maddon
* Weeks before fire killed 2 children, complaint about lack of heat filed
* Trump budget seeks $54 billion defense increase while cutting domestic programs


» Rauner, Chance The Rapper To Talk Chicago School Funding
» Advocates: Caps On Charter Schools Are 'Bad For Our City'
» CPS: School Year May End Early If State Doesn't Provide More Money
» Doctors Warn Against Teen Pot Use Amid Looser Marijuana Laws
» Illinois Town In Trump Territory Backs Detained Immigrant
» Chicagoans Rally To Support Trans Rights After Trump Rescinds Student Protections
» Rauner Has Plan To Keep Government Running In Case Of Strike
» Congressman Rush Declares His Offices As Sanctuaries
» Weekend Funerals For Young Victims Of Chicago Violence
» CPS Relents, Returns $15 Million to Poorest Chicago Schools


* Scott Reeder: AFSCME needs to understand the necessity of sacrifice
* Rauner, Chance the Rapper to talk Chicago school funding
* United announces plans for more flights, new destinations
* Gov. Rauner wants more Medicaid clients on managed care
* Sanctuary issue draws dueling demonstrations to Capitol
* Angie Muhs: It's time to name another Reader Advisory Board
* Bernard Schoenburg: Duckworth names 'thoughtful' former boss to downstate post
* Statehouse Insider: It's not the money, it's the appearance
* Our View: It's time for penance at the Capitol
* Rauner's office: Gov spends 55% of Illinois nights at Mansion


* Cubs World Series trophy coming to Decatur
* Suspect uses track hoe to steal $50 in coins — and did thousands of dollars worth of damage
* Peoria career fair aims to diversify construction trades
* South Peoria homeowners look for city help for home repairs
* Student of the week Alex DiGiovanni
* Iowa Utilities Board approves water rate increase
* Church invites public to Tuesday forum on race
* PODCAST: News Gazette Sports Page 02-27-17
* Crews work 90-acre brush fire in Dupo
* Upcoming Services


* Des Plaines man gets probation for lying in probe of Cook County court clerk
* Constable: Oscars serve sweet slice of Americana
* Wheeling incumbent trustee candidates support Argiris
* Elgin police not changing stance on immigration
* Police searching for inmate mistakenly released from prison

* Hultgren criticizes immigration ban, Roska...
* Hultgren to join veterans' forum at Geneva...
* Hultgren to participate in veterans forum ...
* Majority of IL Congressional Delegation Op...
* Group upset with Trump wants Town Hall mee...
* US Rep. Randy Hultgren talks veterans' iss...
* Protesters converge on U.S. Rep. Randy Hul...
* GOP congressman appears to distance himsel...
* US Representative Randy Hultgren visits ne...
* Hultgren posts comments on health care ref...

* Senator accuses GOP of using secretive int......
* Dick Durbin Warns Failure to Investigate T......
* Dems bringing young undocumented immigrant......

* Duckworth says she'd work with Trump on a ......
* Duckworth visits Western - Western Courier......

* The immigration debate: What does the Catholic Church teach?
* Rauner to meet with Chance the Rapper
* Illinois’s only true meadery is riding the current wave of interest in the fermented honey beverage
* The One-Minute Festival offers a takedown of the entire Trump administration in just 60 seconds
* A tiny takeout joint in a Wilmette strip mall serves some of the most lovingly made Pakistani food in the Chicago area
* Hundreds gather for ‘Not My President’ rally outside Trump Tower, and other Chicago news
* Bit Bash’s Filthy Pixels, Taco Fest 2017, and more things to do in Chicago this week
* Mardi Gras shrimp boil, Wayne's World live reading, and more things to do in Chicago this week
* Does Rauner plan to "PATCO" state employees?
* The Weekend In Chicago Rock


* Governor Announces Medicaid Managed Care Reboot
* Returning Illinois Products Expo Offers 'Taste of Illinois Agriculture' - Supporting Illinois agri-businesses creates boost to Illinois economy
* Governor Celebrates Black History Month
* Governor Bruce Rauner Honors Carnegie Hero From Buffalo Grove
* Governor Addresses State Board of Education to Emphasize Importance of Strong Accountability Standards

  
* You’re watching 1 billion hours of video on YouTube daily
* Mozilla buys Pocket, looks to leverage its 10 million users
* How to update the Google Play app on your Android phone or tablet
* [Deal] Get a free third line from T-Mobile
* Nokia to eliminate Withings brand starting this summer
* Hater, an app for finding someone who dislikes the same things as you, to expand beyond dating
* Mozilla Acquires Read-it-Later App Pocket

* Abreu slugs first Sox homer; Giolito debuts
* Giolito: 'A lot to work on' after White Sox debut
* Abreu slugs first Sox homer; Giolito debuts
* Abreu slugs first Sox homer; Giolito debuts
* Moncada flashes defense in first spring start
* Moncada flashes defense in first spring start
* Facing Cubs, Renteria 'really happy' with Sox


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

Archives
February 2017
January 2017
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




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