Capitol Fax.com - Your Illinois News Radar » Today’s number: $2.1 billion
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s number: $2.1 billion

Wednesday, May 20, 2015 - Posted by Rich Miller

* The problem, according to the Taxpayers’ Federation and the Center for Tax and Budget Accountability in a new report

According to the Illinois Comptroller, the state has run a deficit in its General Fund every year since at least 1991. The causes of these annual deficits vary, as do the potential solutions, but the data make one thing clear—antiquated tax policy is one of the significant contributors to Illinois’ long term fiscal shortcomings.

* So, what to do? One route is looking at the sales tax

For a sales tax to play its role of generating stable revenue for a fiscal system, it needs to apply broadly to most transactions that occur in the consumer economy. The reasons for this are easy to understand. First, consumer spending is the largest segment of both the nation’s and Illinois’ respective economies, accounting for nearly 70 percent of all economic activity. Second, consumer spending usually does not decline substantially—even during major economic downturns. For instance, during the Great Recession, consumer spending remained relatively constant, with real personal consumption expenditures declining by less than one percent from 2007 through 2010. Hence, if a sales tax base broadly applies to most transactions in the consumer economy, that sales tax will have the capacity to provide some stability to a state’s fiscal system, even when other more volatile/responsive revenues are declining rapidly. In addition, a broadly applicable sales tax is efficient—it does not distort consumer decision-making by exempting, and thereby favoring, one business sector over another.

* The case for the sales tax on services

Illinois’ sales tax applies to fewer service industries than do the sales taxes in all of Illinois’ neighboring states. Nationally, Illinois ranked 45th (out of 45) in the number of service industries identified as subject to its general sales tax. Because Illinois does not apply its sales tax to most services, it has what is considered a narrow sales tax base. This is problematic because research shows that a narrow–based tax is more volatile than a broad-based one. Volatility is not desirable in a sales tax, which is supposed to generate stable revenue for a fiscal system. Hence, broadening Illinois’ sales tax base to include more services than are currently taxed should decrease this volatility. This, in turn, should enable the sales tax to do a better job of generating stable revenue for the Illinois fiscal system. […]

in 1965, the sale of services accounted for 51 percent of the total Illinois economy, while the sale of goods accounted for 41 percent. Over the next half century, the Illinois economy greatly changed. By 2012, the sale of services increased to represent 72 percent of the state’s economy, while the sale of goods declined significantly, accounting for just 17 percent of the Illinois’ economy. Put another way, the base of the Illinois’ sales tax lost more than half of its value as a share of Illinois’ economy over the last four decades. […]

By leaving the majority of the largest and fastest growing sector of the state’s economy out of its sales tax base, Illinois has effectively ensured that its sales tax cannot perform the stability function needed for its fiscal system to be sound.

* What should be avoided

To modernize its sales tax, Illinois should expand its base to include consumer services, like pet grooming, haircuts, country club membership, health clubs, and lawn care.

The focus on consumer services is intentional. There are a number of service industries that should not be included in the state’s sales tax base for a variety of reasons. For instance, regardless of the service, business-to-business transactions should not be taxed, because taxing such transactions creates economic distortions and inefficiencies. Indeed, taxing business-to-business transactions typically results in “tax pyramiding,” which occurs when essentially one economic transaction is taxed multiple times during production and distribution, rather than just once upon final sale to the end-user. Tax pyramiding artificially increases the cost of a product or service as it flows through the economy, by taxing various stages of production.

* Bottom line

Based on COGFA’s analysis, an estimated $2.105 billion in additional revenue could be generated if the sales tax base was expanded to include primarily consumer service industries while excluding business-to-business transactions and professional services.

Coincidentally, that’s almost the entire amount of Gov. Rauner’s phony “savings” from pension reform next fiscal year.

* Greg Hinz

Local governments, which get at least an additional 1.25 cents on the dollar, would net another $526 million—money that would help Chicago, Oak Park, Schaumburg and other cities and towns throughout the state deal with budget problems including a proposed cut in state aid under Rauner’s budget.

The figure would be a lot higher if professional services were taxed, things such as legal and accounting fees. But the authors of the report say taxing such business-to-business charges are a bad idea. […]

Taxing construction services—such as carpentry, plumbing and painting—would net an estimated $795 million a year. Cable TV and other “program distribution” would get $11.6 million, data processing and other computer services $81 million, maintenance and janitorial services $28 million, and health clubs and tanning salons $11.3 million. A full list is at the end of the report.

To reach its $2.1 billion number, the groups took old estimates by the Commission on Government Forecasting and Accountability—the Legislature’s fiscal research unit—and adjusted them for inflation.

Thoughts?

       

62 Comments
  1. - Norseman - Wednesday, May 20, 15 @ 1:15 pm:

    It’s an adult idea that requires adults to discuss. We have yet to find some adults in the Capitol.

    Obviously, nobody wants to pay more taxes but something is required. This is a reasonable approach to consider.


  2. - facts are stubborn things - Wednesday, May 20, 15 @ 1:16 pm:

    For many years, the citizens of Illinois have been receiving state services - the cost of which - exceed the tax structure revenue. That gap, often referred to as the structural deficit, has been filled by skimping on pension payments and using the pension fund as a way to pay for services without actually paying for them….helps to get you re-elected. Taxing services is one way to start dealing with that structural deficit. Our economy has changed over the years and is more of a service economy then it use to be and it makes sense to modernize the tax system to achieve revenue from the economic growth that we have.


  3. - Cold - Wednesday, May 20, 15 @ 1:16 pm:

    Maybe you can send that memo to Toni Preckwinkle. She lowered the sales tax and is pushing her pension bill in the legislature right now. For the price of a whopping quarter cent boon to taxpayers, current employees will suffer pension cuts far beyond those inflicted in SB1.


  4. - facts are stubborn things - Wednesday, May 20, 15 @ 1:20 pm:

    The ISC ruling that forcefully declared SB 1 unconstitutional, is starting to change the political landscape and a large slow pivot can now be seen as starting to occur. The pension debt caused by our structural deficit may now have to be dealt with because the SC made it crystal clear that all promised benefits must be paid — pension system will no longer be a way to pay for things without raising taxes. Time will tell, but it looks like higher revenue is going to have to arrive and everyone is trying to figure out how to do that and blame the other guy.


  5. - Commonsense in Illinois - Wednesday, May 20, 15 @ 1:20 pm:

    I’ve read the report. Norseman is correct that people don’t want to pay more in taxes. However these two highly respected organizations make the case for me. I wouldn’t object to this as part of an overall approach. I don’t think anyone believes the gap between revenues and spending can be closed simply by cutting or by sole raising taxes - it will take a combination of the two. And looking only at sales tax isn’t the end-all either. As I said, it’s part of the solution and gets us moving in the right direction.

    Frankly, I wouldn’t mind seeing professional services added to this mix.


  6. - Carroll County - Wednesday, May 20, 15 @ 1:22 pm:

    Not opposed to fixing the service tax, but with Illinois’ total tax burden (2011 report) rank being #13 from the highest, it should try to moderate any increases to make sure it stays competitive and ahead of the highly taxed northeast.

    http://taxfoundation.org/state-tax-climate/illinois

    It hopefully will stay as a great sweet spot of better tax rates and highly skilled workforce (and plentiful water supply!).


  7. - dupage dan - Wednesday, May 20, 15 @ 1:22 pm:

    Doesn’t require a constitutional amendment that a graduated tax, or a surcharge on the evil rich would need. The more services you pay for, the more tax you would pay. Rich people generally pay for more services.

    I am not a fan of raising taxes. Fact is, there have been many cuts to state gov’t in the past 10 years - as a state employee, I have witnessed it.

    Too bad this tax has no chance.


  8. - Bill White - Wednesday, May 20, 15 @ 1:23 pm:

    = = Based on COGFA’s analysis, an estimated $2.105 billion in additional revenue could be generated if the sales tax base was expanded to include primarily consumer service industries while excluding business-to-business transactions and professional services. = =

    My objections:

    Sales taxes are regressive and are not tax deductible. Illinois already sends more to the US Treasury than it gets back.


  9. - nixit71 - Wednesday, May 20, 15 @ 1:32 pm:

    An expanded sales tax that reflects a more service-based economy makes sense.

    But IL already has the 10th highest sales tax rate: http://taxfoundation.org/article/state-and-local-sales-tax-rates-2014

    And “Tax Freedom Day” for IL residents comes later than all but 7 otter states: http://taxfoundation.org/article/tax-freedom-day-2015-april-24th

    So what else is going to give?


  10. - The Whole Truth - Wednesday, May 20, 15 @ 1:40 pm:

    Along with Carroll County and nixit71, Illinois already leads in property taxes both in terms of dollars and as percent of home price.

    http://www.taxpolicycenter.org/UploadedPDF/412959-Residential-Property-Taxes.pdf

    Seems we should be able to figure out some sort of tax relief to get in line with the rest of the country.


  11. - Robert the Bruce - Wednesday, May 20, 15 @ 1:41 pm:

    Yes, expand the sales tax. $2b doesn’t solve the budget, but is meaningful.

    It’d be nice to figure out a way to tax law firms/management consulting/accounting/auditing firm revenue, but I imagine they’d just do billing via out of state offices to avoid it.


  12. - not right - Wednesday, May 20, 15 @ 1:43 pm:

    The report states since 1991 Illinois has run in the red. Wait a minute was not the first year of the greatest modern financial accountable Governor Jim Edgar? Say it is not so….. .


  13. - nixit71 - Wednesday, May 20, 15 @ 1:45 pm:

    That said, I’m still waiting for one report from the CTBA - a group that receives over two-thirds of its funding from organizations (SEIU, AFT, NEA, AFSCME) entirely dependent on tax revenue - that does not call for something beyond needing more tax revenue. We get it…your benefactors like higher taxes.

    A process improvement or redundancy elimination suggestion would be nice. After all, those are Budget related and address Accountability in our elected leaders.


  14. - Arizona Bob - Wednesday, May 20, 15 @ 1:47 pm:

    These seem to be pretty sound ideas if additional revenue is needed, and it likely will be to make up for decades of overspending and fiscal malfeasance in Springfield.

    The Tax Foundation lends some credibility here as opposed to Martire’s group who just wants ever increasing burdens on the people of Illinois to feed his union sponsors coffers.

    It’s especially smart not to tax “business to business” transactions and focus on consumers since that spending is the most stable, and it doesn’t disadvantage employers in Illinois. The fact that neighboring states are already doing it adds to the argument.


  15. - Tone - Wednesday, May 20, 15 @ 1:48 pm:

    Yep, nixit71, the solution is always more tax revenue from these people. Freeze every state agency budget is a great way to start this, actually, better yet, cut each state agency budget by 10% at a minimum.


  16. - Rich Miller - Wednesday, May 20, 15 @ 1:50 pm:

    Tone, why would someone in JP Morgan Chase’s NYC office be commenting here?


  17. - The Whole Truth - Wednesday, May 20, 15 @ 1:52 pm:

    We need to be careful how “cutting the budget” is defined. Most in state government consider a lesser increase than requested in a budget from one year to the next a “cut”. Less of an increase than what was wanted is not really a cut.


  18. - Rich Miller - Wednesday, May 20, 15 @ 1:54 pm:

    ===the solution is always more tax revenue from these people===

    Since you appear to commenting from a major bank in NYC, you may not know that the Taxpayers’ Federation isn’t exactly pro tax hike. Far from it. The other group is, for sure, though.


  19. - Bill White - Wednesday, May 20, 15 @ 2:01 pm:

    “IL already has the 10th highest sales tax rate” and “Illinois already leads in property taxes both in terms of dollars and as percent of home price.”

    Q: Which Illinois tax comparatively low?

    A: The income tax


  20. - The Whole Truth - Wednesday, May 20, 15 @ 2:08 pm:

    Bill: With Illinois 13th highest already in total tax burden, how much higher on the list would you like to see Illinois get?


  21. - The Muse - Wednesday, May 20, 15 @ 2:10 pm:

    From a competitive standpoint, I doubt Illinois has anything to lose if all we would do is get more in line with neighboring states… 24 years of deficits, it’s time we get our act together.


  22. - The Whole Truth - Wednesday, May 20, 15 @ 2:16 pm:

    Agreed…we need to get more in line with other states. Most have less taxes, smaller deficits/debt, and better credit ratings. Her’s a look at how far we need to go…
    http://www.disclosurenewsonline.com/2015/04/17/wallethub-illinois-worst-state-to-be-a-taxpayer/#sthash.E2NiNEfD.WhpSeOan.dpbs


  23. - Bill White - Wednesday, May 20, 15 @ 2:17 pm:

    @TheWholeTruth

    Taxes are higher in Illinois because there is more wealth in Illinois.

    Among URBAN states, Illinois is a low tax state.

    Yes, we pay more in taxes than folks in poor rural states but we also have more income and more property.

    When tax burden is correlated with income and wealth, Illinois is NOT a high tax state despite the propaganda paid for by some wealthy people.


  24. - Bill White - Wednesday, May 20, 15 @ 2:18 pm:

    @TheWholeTruth

    Rubbish! Pure and simple.

    Cheers!

    :-)


  25. - The Whole Truth - Wednesday, May 20, 15 @ 2:25 pm:

    Bill-
    A quick look around the internet will tell you the same things as above to slightly different degrees. While you may not like reality, merely dismissing it doesn’t make it disappear, only harder to deal with. Do you have a link that shows Illinois ranked even at the midpoint of the states for taxing/debt/credit rating criteria?


  26. - archimedes - Wednesday, May 20, 15 @ 2:25 pm:

    Do it. Not only do these two groups advocate extending the sales tax to services, but the Civic Federation does as well.


  27. - Big Joe - Wednesday, May 20, 15 @ 2:29 pm:

    Taxing those mentioned services makes sense to me. That should be included in whatever revenue fix that comes about. That said, it probably won’t happen with this administration.


  28. - Precinct Captain - Wednesday, May 20, 15 @ 2:30 pm:

    ==- The Whole Truth - Wednesday, May 20, 15 @ 1:52 pm:==

    Where is your polling or survey data to back up that assertion?


  29. - Bill White - Wednesday, May 20, 15 @ 2:34 pm:

    Lots of money has been spent filling the internet with astroturf about Illinois being a “high tax” state despite it not being true.

    Also, is that #13 ranking with the 5% income tax or the 3.75% income tax?


  30. - Bill White - Wednesday, May 20, 15 @ 2:35 pm:

    Check out where Illinois ranked BEFORE the 5% income tax was passed a few years ago.

    Well below 13th place.


  31. - Philo - Wednesday, May 20, 15 @ 2:37 pm:

    This won’t do a thing for FY16. A complex base expansion like this will take many months to implement. By FY17 is probably pushing it.


  32. - The Whole Truth - Wednesday, May 20, 15 @ 2:37 pm:

    Precinct Captain-
    Thirty plus years of dealing with various levels of state budgeting in different capacities. From what I have seen and in conversations with Feds, the nomenclature concern is just as valid at the federal level. Anyone involved in the process will tell you the same thing if they are honest.


  33. - The Whole Truth - Wednesday, May 20, 15 @ 2:39 pm:

    Bill 2:35-
    Do you have a link to that information?


  34. - Bill White - Wednesday, May 20, 15 @ 2:44 pm:

    The Tax Foundation records go back many years.

    I argue this right here at Cap Fax from time to time.

    As I recall, Illinois ranked somewhere in the 20s before the 5% lame duck tax increase was enacted.

    Also this link does include IL at 5% not 3.75% and is therefore now obsolete given the expiration of the 5% tax.

    http://taxfoundation.org/state-tax-climate/illinois


  35. - Bill White - Wednesday, May 20, 15 @ 2:45 pm:

    == Illinois’s state and local income tax collections per person were $1206 in 2012 which ranked 11th highest nationally. ==

    In 2012, the income tax was at 5%, right?

    http://taxfoundation.org/state-tax-climate/illinois


  36. - RNUG - Wednesday, May 20, 15 @ 2:53 pm:

    == cut each state agency budget by 10% at a minimum. ==

    That’s already been done each of the last 3 years; most of the waste has been cut out.


  37. - Anonymous - Wednesday, May 20, 15 @ 3:02 pm:

    ==But IL already has the 10th highest sales tax rate==

    The proposal isn’t to raise the tax rate, just apply it to a broader base.


  38. - facts are stubborn things - Wednesday, May 20, 15 @ 3:04 pm:

    RNUG,

    Agree, most of the low hanging fruit has been picked. We are down to eliminating programs if cuts are to go much further. Perhaps with the recent ISC ruling that pension promises must be kept, the political landscape can shift and the structural deficit can finally be addressed. As you well know, it is the structural deficit that is at the root cause of the our pension debt.


  39. - Illinois law - Wednesday, May 20, 15 @ 3:06 pm:

    Let’s tax services provided by small businesses like lawn care where the service provider’s hourly wage is $15 to $20 per hour before expenses. It’s not so much the tax as the reporting and payment of these taxes to the state. Those bookkeeping expenses will be extremely costly for many small businesses. Sam’s lawn services bills at $20 per hour compared to Mr. Attorney who bills at $200 per hour. Another blow for the middle class.


  40. - facts are stubborn things - Wednesday, May 20, 15 @ 3:07 pm:

    instead of raising taxes the GA has used the pension fund to allow citizens to enjoy services without paying for them directly through higher taxes. Now the ISC has made it clear the GA can not welch on those pension promises by creating an emergency of their own making. The structural deficit, the pension debt and the so called pension crisis are all the same thing……people getting something for nothing and now the bill is coming due.


  41. - John Parnell - Wednesday, May 20, 15 @ 3:09 pm:

    If I have to pay a tax to Comcast I am transferring to the Dish network! At 5% I would be paying $1400 more per year.


  42. - Rich Miller - Wednesday, May 20, 15 @ 3:10 pm:

    === At 5% I would be paying $1400 more per year. ===

    You pay $28K a year in cable bills? Lotta pay per view there dude?

    Yikes.

    But the sat tax may be coming, too. Haven’t you seen the ads on this website?


  43. - facts are stubborn things - Wednesday, May 20, 15 @ 3:14 pm:

    The fix is easy, tax services and put the income tax rate back to 5% and make the required pension payments either as is or after re-amortizing the debt…what is left over gives you the dollars which to make a budget with. The trick is doing this so that if you are the majority party you stay that way and if you are the minority party so that you don’t stay that way. Oh yes, and along the way each member needs to make sure they get reelected.


  44. - The Whole Truth - Wednesday, May 20, 15 @ 3:21 pm:

    Bill-
    State income tax is only a part of the tax burden, and looking at it only does not give an accurate measure of the total tax burden. State, Federal, local, sales, and property taxes all have to be considered.

    That said, for 2009, your link indicates we were 8th highest for state/local tax burden. Previous years show 20th highest or so depending on the year. The more interesting comparison is the per capita income in specific years and as a trend, decreasing about 10% from 2007 to 2011.

    At the end, they list Tax Freedom day for Illinois as 7th worst for both 2014 and 2015. The methodology explanation indicates the 2015 date represents 2015 taxes, which would not include the 5% rate. Whether the date is accurate or not, we will continue to be among the highest total taxed whether the 5% is reinstated or not. Its only a matter of to what degree.


  45. - The Whole Truth - Wednesday, May 20, 15 @ 3:26 pm:

    Anon- 3:02
    It doesn’t expand the tax base…there will be the same number of taxpayers after passage as now, if you ignore the out-migration. The difference is you will be paying taxes you didn’t pay before. That’s a tax hike, not expansion of the tax base.


  46. - Hit or Miss - Wednesday, May 20, 15 @ 3:59 pm:

    Expanding the sales tax to services used by most people, for example haircuts and auto repairs, will be rather regressive. If there is an expansion of the sales tax it should be only on services that are optional and which are used mainly by the rich. Some services that I think should be for consideration for having a sales tax applied to them include things such as: private country club memberships, CPA services for individuals, private jet plane rentals, tanning salons, and private yacht rentals.


  47. - facts are stubborn things - Wednesday, May 20, 15 @ 4:01 pm:

    DEFINITION of ‘Tax Base’

    The assessed value of a set of assets, investments or income streams that is subject to taxation, or the assessed value of a single asset that is subject to taxation. Anything that can be taxed has a tax base.

    In all debates you must first define your terms or you end up talking past each other. If you tax services that have never been taxed before then you are increasing the tax base. Tax hike vs tax rate are two different things. It is true that taxes are being hiked ie. more taxes, but it is also true that the tax rate the percentage may not be going up it is just applied to more things.


  48. - facts are stubborn things - Wednesday, May 20, 15 @ 4:05 pm:

    The bottom line is until now, assuming taxes go up, citizens have been receiving services that they have not been fully paying for because pension dollars were used instead. If the GA had gotten there way the retirees that were on state pensions would have subsidized all the citizens for services received that were not fully paid for by loosing promised benefits. Now after the ISC ruling all tax payers will one way or another be paying for the pension debt that was ran up like a credit card to pay for these services. Either we will start to pay the taxes needed for the services we have or we will have to live with less services. Many of these services just don’t go away because you remove the line from the budget — they are moved to someone else’s line in their budget. The old adage there is not free lunch applies here.


  49. - The Whole Truth - Wednesday, May 20, 15 @ 4:05 pm:

    Facts-
    Your definition is different than I learned in Econ 101, but that was some time ago. You are right, it is easy to talk past each other. But from the individual’s standpoint, he would be paying a tax not paid before, a new tax, but still an increase in his tax burden with no additional taxpayers created.


  50. - David Starrett - Wednesday, May 20, 15 @ 4:24 pm:

    It’s been pretty clear for sometime that the State’s revenue structure has been based on a manufacturing economy in decline compared to the service and financial sectors which are largely untaxed. If we want to maintain an acceptable level of services (especially with an aging population) our tax structure needs to recognize those realities.

    I think an expanded service sales tax makes some sense, though taxing legal services could run into constitutional problems, particularly in criminal cases.

    Imposing a mere one-tenth of one percent financial transaction surcharge on commodities trades would make our fiscal problems evaporate. Does anyone really think that the CE or CBOE would actually relocate?


  51. - David Starrett - Wednesday, May 20, 15 @ 4:47 pm:

    CBoT.


  52. - Maxi27 - Wednesday, May 20, 15 @ 5:03 pm:

    IL sales tax is based on taxing tangible personal property, TPP. You have to touch it to tax it. Currently, IL doesn’t tax rental receipts, other than vehicle rentals. It would be a small and simple start.


  53. - Last Bull Moose - Wednesday, May 20, 15 @ 5:07 pm:

    David S. In a heartbeat. Online activities are extremely mobile.
    People try to tax things or activities that are immobile and unavoidable. Hence property and estate taxes.
    Taxing retirement income is more risky than taxing salaries because retirees are more mobile than workers.
    Excise taxes are not always regressive. I remember paying a 10 percent luxury tax on a present for my Mom. That was a Federal tax left over from WW2.
    In our mixed Federal/State system the State is encouraged to tax property and income because these taxes are deductible at the Federal level.


  54. - Anon - Wednesday, May 20, 15 @ 5:14 pm:

    Compared to surrounding states, the private-sector working and middle classes in Illinois are hit relatively hard by taxes, fees, fines, fares, tolls, etc.
    The average top marginal income tax rate in surrounding states is 6%, which is 60% higher than in Illinois.
    Public employee compensation is significantly higher in Illinois than in surrounding states.
    Expanding the sales tax would further burden the private-sector middle class in order to protect the rich and fund public retirements that are typically two to three times those of private-sector retirees.


  55. - Anonymous - Wednesday, May 20, 15 @ 5:18 pm:

    ==Does anyone really think that the CE or CBOE would actually relocate?==

    Yes.


  56. - Wordslinger - Wednesday, May 20, 15 @ 7:04 pm:

    Just like the pension “crisis” hysteria/fiasco, this is another salvo in the plutocrats long game against the movement toward a progressive income tax like those Bolshies have in Commisar Walker’s Wisconsin.

    There’s an obvious bias in this analysis in that it wants to tax consumer services and not b-to-b services, supposedly because a b-to-b taxes result in “pyramiding” (whatever that means).

    Give that a think.If you add a service tax on of the overall price of hiring a carpenter, or a plumber, or a painter, there’s a chance that some consumers will choose to do it themselves or go without.

    If you put a service tax on what a law firm charges an accounting firm, or what an accounting firm charges a law firm, or they going to go without? Are they going to do it themselves? Of course not.

    Now someone will say those businesses will pass the tax on to the consumer. Maybe they’ll try, the tax will be just one of many costs of doing business.

    But they have competitors. They can’t set price in a vacuum. And there’s a lot more to landing business than just price. Asparational value, perceived value are huge.That’s why you get your coffee at Starbucks instead of the gas station; that’s why you buy Nike instead of Keds.


  57. - Last Bull Moose - Wednesday, May 20, 15 @ 8:19 pm:

    Wordslinger, if you tax business to business sales you encourage businesses to bring the function in house to avoid tax. European value added taxes are structured to pass the business to business taxes forward to the domestic consumer. The VAT is also refunded on exports. That keeps jobs in Europe.


  58. - Wordslinger - Wednesday, May 20, 15 @ 8:30 pm:

    LBM, that’s too broad and I don’t think reflective of business reality.

    I think the trend for most businesses is to reduce to core function, and contract out for services.


  59. - cats - Wednesday, May 20, 15 @ 8:37 pm:

    An economic truism is that when something is taxed, you get less of it, so unless the services are critical to consumers’ lifestyle, they will use less or move to an area of lower taxes.


  60. - Salty - Thursday, May 21, 15 @ 12:12 am:

    Wordslinger - I would just say that CTBA is generally considered a lefty organization and they receive a fair share of funding from unions. So since they say taxing B2B is bad, I would assume they are correct or at least have some good reasons for it. I doubt their funders would allow them to carry the water for the ‘plutocrats.’


  61. - CharlieKratos - Thursday, May 21, 15 @ 8:11 am:

    Everything on here seems to be focused on what “can be done” and “what should be done”, but you’re leaving out one very important factor: “what Rauner will allow to be done”. BR isn’t interested in what will be good for the people of this state. He’s interested in RTW, busting unions, and driving down middle class wages in general. If it doesn’t have anything to do with those three goals, forget it. He’s not interested. He’s already proven this. You can’t argue logic with someone like that.


  62. - John Parnell - Thursday, May 21, 15 @ 4:15 pm:

    Oops, sorry. Fat finger on the decimal point.


Sorry, comments for this post are now closed.


* Let's help these kids! (Updated)
* Once again, a Chicago revenue idea would require state approval
* Lion Electric struggling, but no state subsidies have yet been paid out
* Question of the day
* Madigan trial roundup: Solis faces first day of cross-examination
* Open thread
* Isabel’s morning briefing
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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

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


Loading


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

Archives
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
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




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