This has been mentioned before in at least one other place I think, but Crain’s fleshed it out a bit more last night. On top of the gross receipts tax, Gov. Blagojevich also wants to impose a payroll tax on business to help finance his universal health care plan.

Illinois business would face a second major new levy — a payroll tax of about 3% — under the proposed fiscal 2008 state budget that Gov. Rod Blagojevich is scheduled to unveil Wednesday.

A spokeswoman for the governor confirmed Friday that “a tax based on some portion of payroll” of most companies that do not now offer health insurance to their workers will be included in the new budget proposal.

Proceeds would be used to subsidize a new universal health care system that Gov. Blagojevich is expected to roll out as early as this weekend.

As previously reported, Mr. Blagojevich also is expected to propose a new tax on gross corporate receipts that would net as much as $6 billion for health care, schools and other needs and which would replace the state’s existing corporate income tax. […]

Sources familiar with the governor’s plan say the new payroll tax would technically be levied on all companies, but companies would receive full, dollar-for-dollar credit for expenditures they already make for worker health insurance. Also exempt would be companies with 10 or fewer employees each, insiders say.

* Meanwhile, also in Crain’s, another tax is being proposed

The Senate’s point man on electric rates is floating the idea of a tax on Illinois power generators to produce revenue for rebates to utility customers reeling from higher electric rates.

Sen. James F. Clayborne Jr., D-Belleville, a close ally of Senate President Emil Jones, has asked power plant owners including Exelon Corp., Ameren Corp., Midwest Generation LLC and Dynegy Inc. to meet with him Wednesday to discuss a tax or revenue-raising alternatives they could offer. […]

The development is seen in Springfield as evidence that Sen. Jones, a staunch backer to date of Commonwealth Edison Co. in its opposition to reducing or rolling back the rate hikes, won’t support the utility unconditionally in the face of customer outrage over the increases. Springfield erupted last week as Downstate consumers told their stories of electric-bill increases in some cases exceeding 200% and 300% during an unusual hearing before the full House. […]

“The (tax) mechanisms that are being talked about are an elegant solution to the problem,” says David Kolata, executive director of the Citizens Utility Board, a consumer watchdog group. “What’s happened (with the rate hikes) has been a tremendous transfer of wealth from consumers to Exelon, Ameren and Wall Street.”

*** UPDATE *** The Tribune mentions the payroll tax in a Monday story. This is, at the moment, the most underreported story of the upcoming budget fight.

Sources have said that in addition to the $6 billion tax on business gross receipts, which would require businesses to pay the state each time they got paid for a product or service, the governor intends to propose a new payroll tax to generate money from businesses that do not provide health insurance to their employees.

The governor is expected to detail both taxes Wednesday during his budget address to the General Assembly. The governor’s administration has been promoting the speech, going so far as to send out e-mails to an array of Illinois groups and residents encouraging them to gather to watch it. The e-mails ask recipients to RSVP to 15 pre-selected locales around the state where his budget address will be aired and where staffers from his office will be on hand to answer questions.