GRT roundup *** Updated x1 ***
Thursday, May 3, 2007 - Posted by Rich Miller
Finally, somebody else tackles the issue of the Illinois Press Association’s unusually strident opposition to the governor’s gross receipts tax and its impact on press coverage…
(T)he IPA’s position has been troubling for reporters, including myself, and potentially calls into question whether newspapers are covering the governor’s proposal fairly. […]
And then [the IPA press release] adds this: “Consequently, the IPA board is encouraging member newspapers to write news stories that focus on ‘the community or local impact of GRT.’”
That sure sounds to me, and many others, like the IPA was trying to direct news coverage.
The problem with that is that straightforward newspaper reporting that points out real problems with the governor’s proposal could be called into question if the governor or anyone else thinks a corporate agenda, not just the facts, are behind that coverage.
That’s exactly right. The IPA, in its zeal to oppose this tax increase, has seriously undermined the work of every reporter who works on the GRT story.
* Meanwhile, the State Journal-Register called for a compromise today…
Gov. Rod Blagojevich’s gross-receipts tax - he prefers calling it the tax fairness plan - has been sitting for a long time now on the legislative launching pad.
After House Speaker Michael Madigan’s announcement on Wednesday, we suspect this tax rocket is likely to fizzle. Madigan is calling for a special meeting of his chamber as a “committee of the whole†to discuss Blagojevich’s plan that seeks to tax business transactions for all firms doing $2 million or more in annual commerce. The plan would garner $7.6 billion, most of which would go to education and health care.
Blagojevich’s plan may not be dead, but its pulse is hard to find at this point. On Wednesday, 61 House members signed a resolution opposing the tax. That’s not a good legislative start to say the least. Blagojevich so far seems to have taken an “it’s my way or the highway†approach†to the GRT.
We suspect Madigan’s call for the full House meeting next week is sending a strong message that the governor needs to consider compromise. We hope he gets the message.
* The Daily Herald had some comments from Speaker Madigan in its story today…
I said that I think we’re going to need a tax increase, and that’s as far as I’m going to go,†Madigan told reporters Tuesday after speaking to a gathering of business owners.
“I don’t think that any tax increase is popular. If I walk my block in Chicago, people don’t say to me, ‘Oh, Mr. Speaker, please raise the tax.’ They don’t come out of their house and say, ‘Would you please raise the tax,’†Madigan said. “Just the idea that you are prepared to raise a tax or impose a tax is not an easy thing to do.â€
* Gatehouse had this one from Madigan…
“I think, when we get down to budget-making, that a majority of the legislature is going to recognize that we need a tax increase.”
* More tax and spend stories, compiled by “C” (aka Paul Richardson)…
* Educators rally to improve school funding
* Educators rally ‘as one voice’
* Majority in house hit governor’s tax plan
* Lawmakers voice opposition to Governor’s tax plan
* State lawmakers voice to oppose Blagojevich plan
* Madigan to convene entire House on GRT
* Governor’s tax plan to get full hearing
*** UPDATE *** You can download Speaker Madigan’s speech to the business groups yesterday by clicking here [mp3 file].
- A. Potter - Thursday, May 3, 07 @ 10:17 am:
The state needs more revenues, even the Trib admits it, and the residents and businesses that benefit from state services will need to ante up. I hope the testimony at the committee of the whole hearing next Wed. will measure the grt option not against the status quo, but against possible increases in some or all of the other taxes that fall on people and businesses, including property taxes, utility taxes, fuel taxes, sales taxes, payroll taxes, and unemployment taxes–in addition to the corporate and personal income tax. No tax looks palatable when isolated from the big picture, but some options are more attractive than others if you know there is no way around the need to pay the bills.
- Rich Miller - Thursday, May 3, 07 @ 3:54 pm:
You’ve gotta be kidding me. A huge tax hike on the horizon and this gets one comment?
- Bill - Thursday, May 3, 07 @ 4:49 pm:
I take the lack of comment as a sign that most agree that a tax increase is needed, wanted, and inevitable. Now, even Madigan is on board.What kind of tax increase is pretty much an argument for the experts as long as it yields enough revenue to adequatly fund state gov’t,health care and education. I would estimate a 2 point increase in the income tax along with extending sales tax on services with no swap would render about the same amount of revenue as the Gov’s tax fairness program and would still let big business off the hook. Maybe the Alt min tax on corporations would alleiviate that inequity. Take your pick Chamber and IMA. I hope that your members have deep pockets.
- leigh - Thursday, May 3, 07 @ 6:08 pm:
Site is slow, but nobody except the gov., Bill and Jones wants the GRT.
- Policy Wonk - Thursday, May 3, 07 @ 7:29 pm:
It’s a difference in philosophy, Bill. I would agree that a tax increase is probably needed, but I want to see some real restraint in spending coming out of Springfield first. Stopping the legislative add-ons and MOUs would be a good first stop. Killing off all fluff programs would be a second move. I doubt there is much more on the operations side that can be cut - Filan’s done a good job with that.
The problem is that GRT is a disaster waiting to happen. There are other options out there that would be better alternatives.
Want to take bets on whether the Gov shows up for the Committee of the Whole on Wednesday? Oh wait - they don’t even know the details of their own “plan” yet…
- Holdingontomywallet - Thursday, May 3, 07 @ 7:46 pm:
I’m not sure a tax increase is needed. This administration has cut the state workforce, but there still seems to be plenty of money for pet projects and raises for the chosen few. I keep hearing how bad the schools are and that may be true for some districts. Some districts are doing quite well and I have a problem giving teachers and administrators big raises when they are already making good money for 8 months of work. Having said that, some teachers in poorer school districts need a raise. Everyone knows that if the schools get a large boost, alot of that $$$ will go to the richer school districts and alot of it will be for big raises. I have a problem with that. I have no problem providing money for school construction projects in districts that need it. This is just one example…
Also, aren’t the state revenues way up? Someone needs to demonstrate to me that they have eliminated all of the pork and that they will have some accountability on what the tax increase will be used for - I have absolutely no confidence in this bunch of robbers in our legistlature to be responsible with OUR $$$. If we are in such bad shape, how on earth did they vote themselves a raise? I want to see some details; something this bunch doesn’t seem to be able to produce.
- Holdingontomywallet - Thursday, May 3, 07 @ 9:17 pm:
Bill,
I knew in 2002 when Governor Blagojevich was elected that a tax increase was “inevitable”. Not exactly a “news flash”…..
- Mr. Wizard - Thursday, May 3, 07 @ 11:53 pm:
The only reason a tax increase is “needed” is because the GA has refused for many years to make its pension contributions, while EVERY state employee made his or hers. The rest is only “needed” by the lobbyists.