* The governor’s grasp of reality, or lack thereof, was on full display yesterday when asked about the overwhelming House vote against his gross receipts tax…

“There’s ups and downs, but (I) feel good about it,” Blagojevich said after an appearance in Chicago. “Things went pretty well today.”

* And…

“Today, I think, was basically an up … I feel good about it,” he said.

* And…

Blagojevich spokeswoman Rebecca Rausch said her boss’ tax remains alive despite not getting a single vote of support.

* My Sun-Times column takes a look at the alternative realities that both the governor and President Bush have constructed for themselves and have attempted, without much success, to impose on the rest of the world.

Both men appear to have constructed their own realities, where all results are predestined to succeed because they fervently wish it so, regardless of the actual “real world” realities where the rest of us reside.

* But, like with Bush, things are changing fast around Blagojevich, despite his insistence that everything is fine and dandy. The Tribune and I both reported this morning that Senate President Emil Jones met with House Speaker Michael Madigan yesterday to discuss the tax situation. The Tribune also offers up this tidbit from Senate Majority Leader Debbie Halvorson, which is a big signal that the ground has shifted…

Afterward, a top Jones deputy, Senate Majority Leader Debbie Halvorson (D-Crete), suggested it is time to consider a “Plan B,” which might be a mixture of other taxes.

* But the governor says he isn’t budging…

Blagojevich told the crowd that big business lobbyists in “Gucci loafers” were trying to kill his plans for expanded health care. And he warned that a final deal on the state budget may be “even months” away.

* Jay Hoffman, however, signaled a possible alternative…

Rep. Jay Hoffman, D-Collinsville, a close Blagojevich ally, said lawmakers also could look at closing business tax loopholes or imposing a minimum corporate income tax to ensure large companies pay some income tax in Illinois.

“I wouldn’t say that a modified revenue increase on the largest corporations is off of the table,” Hoffman said.

* And Speaker Madigan plans to ask his members next week for new ideas…

Madigan later announced a House Democrat caucus on Tuesday morning to discuss a different tax plan, but no details were available today.

More GRT news, compiled by Paul…

* House rejects governor’s GRT plan

* Governor’s tax proposal suffers resounding defeat

* No surprise as tax plan voted down

* House unanimously turns down GRT

* Sun-Times Editorial: Uplifting ideas alone won’t raise needed state revenue

* Tribune Editorial: Debating what Illinois needs

* Eric Krol: Governor gets his Armageddon but loses first battle

*** UPDATE *** Halvorson more fully explains “Plan B”…

Senate Majority Leader Deborah Halverson says Democrats know there’s a health care crisis, and schools need more money. Halvorson says it’s time for the egos and testosterone to be put aside. She says Governor Blagojevich should recognize there’s little support for his Gross receipts Tax and consider plan B. And the Crete Democrat says that doesn’t have to be a hike in the state income tax. She says there are gambling proposals and a plan to lease the Illinois Lottery among those that should be considered.