Governor Rod R. Blagojevich today welcomed the support of Chicago Cubs legend and broadcaster Ron Santo for his historic plan to give every Illinoisan access to affordable, quality healthcare coverage.
Santo stood with the Governor in front of Wrigley Field to voice his support of the Governor’s “Illinois Covered†proposal to make sure Illinois’ 1.4 million currently uninsured adults have access to affordable health coverage – and to help millions of middle-class families who already have insurance afford the high cost of premiums.
There’s no Santo quote in the press release endorsing the governor’s gross receipts tax, but that’s mostly how the health insurance proposal will be financed.
This isn’t the first time that Santo and Blagojevich have done a joint public appearance. Santo and Blagojevich (a major Cub fan) did a press pop on behalf of the Diabetes Research Tax Checkoff Fund a while back.
*** UPDATE *** John Beydler takes a look at the gross receipts tax and comes up with this logic…
Forbes’ Magazine’s ranking of the best states for business doesn’t indicate a gross receipits tax is a problem. Texas is No. 2 best state for business; Delaware is No. 8; Washington is No. 12. (Illinois is No. 44.)
Taxfoundation.org’s rankings track closely: Texas is No. 6 best state; Delaware is No. 9; Washington is No. 11. (Illinois is No. 25).
The problem may be less a gross receipts tax than the rates being proposed and the dollars it would it would put in the hands of a state government that often spends neither wisely nor well.
The updated franchise tax levies a 1 percent tax on the gross receipts of businesses in Texas (retailers pay a .5 percent rate), but exempts sole proprietorships and general partnerships. Businesses can elect to deduct either the cost of goods sold or employment costs.
That’s quite a bit different from the one proposed here. There are no exemptions (except for those grossing under $2 million) and no deductions in Gov. Blagojevich’s plan.
Washington state’s plan is somewhat similar, except for the GRT on retail and most other service businesses, which would be much higher under Blagojevich’s plan…
The major B&O tax rates are: .0471% for retailing, 0.484% for manufacturing, wholesaling and most other business, and 1.5% for selected business services. In the case of manufacturing, this means that $4.84 is collected for every $1,000 of gross sales. Businesses with gross receipts of less than $1,000 per month are exempt from B&O tax payments. Some cities also apply a B&O tax to sales made by businesses physically located within the city, and on sales to customers located in cities that have a B&O tax.
I’m having some site issues this morning. The thing just isn’t loading very fast, if at all. I’ve contacted the hosting company and they say they have their top people working on it. We’ll see what happens. [Update: The problem appears to be fixed for now.]
Anyway, here’s the setup, from an Illinoize post by OneMan…
OneMan and OneDaughter (the third grader) are going to be in Springfield next week on Wed for an educational/lobby event (they are not calling it a lobby event, but I know that is part of it). They have some stuff planned for us including talking to a legislator or two along with some of the classic Lincoln stuff.
Since we have family down in Springfield she has seen the Lincoln stuff before, I am open to suggestions on what we can see/do that will give her a better idea of the legislative process without gaining the cynical edge that her dad has at times.
Now, the question: What suggestions would you have to help OneMan’s daughter understand the legislative process while she’s in Springfield?
* Congressional Quarterly’s online service reports that Dan Seals is gearing up for a rematch with Congressman Mark Kirk.
Illinois Democrat Dan Seals, who ran a respectable losing campaign against Republican Rep. Mark Steven Kirk last year, appears to be gearing up for a 2008 rematch in the state’s 10th District north of Chicago.
Seals, a marketing executive who took 47 percent against Kirk in 2006, filed a statement of candidacy last December with the Federal Election Commission (FEC) that allows him to raise money for a 2008 bid. Seals’ still-active campaign committee reported to the FEC last week that it raised $12,800 in the first three months of this year — an indication that he is preparing for a second campaign. Seals has about $37,000 in his campaign account.
Lauren Beth Gash, a Democratic activist and former Illinois legislator who lost narrowly to Kirk as the 2000 Democratic nominee, told CQPolitics.com that it appears Seals will wage a rematch campaign.
* And somebody sent me a link to this site, which is run by people who hope to draft Air Force Lt. Adam Kinzinger to run as a Republican against GOP Congressman Tim Johnson next year.
* This is a 2008 congressional open thread. Have at it…
* Word is that the Chicago Tribune was handed this story about alleged Ed Vrdoylak ties to an apparently sham candidate in the 32nd Ward race three weeks ago, but the paper didn’t do anything with it. Inside Publications followed up, however…
The revelation of alleged ties between a defeated 32nd Ward aldermanic candidate, Catherine Zarycny, and former 10th Ward Alderman Ed Vrdolyak raises questions about whether she was a reformer or simply someone slated to split the opposition vote in February’s municpal election in order to protect Ald. Ted Matlak from defeat.
Inside has obtained copies of cashier’s checks that paid for $13,764.75 worth of glossy, five color advertising for Zaryczny at Alta Vista Graphics, flyers that then were delivered to every door in the 32nd Ward. One check for $2,124.00 was remitted by Modern Business Consultants (MBC), a business owned by Paul Foxgrover. The other, for $11,640.75, was purchased by Foxgrover himself.
Who is Paul Foxgrover? He is a former Cook County circuit court judge convicted of taking money in the Operation Greylord era and sent to prison for six years. At the time the cashier’s checks were drawn, his headquarters were in Ed Vrolyak’s office at 9618 S. Commercial Ave.
Back in the day, Vrdolyak secured backing for Foxgrover from then 32nd Ward Alderman Terry Gabinski, who is now the ward’s Dem committeeman.
Zaryczny ran as a “reformer” in the first round and scored 14 percent, ensuring a runoff. She then made a quick turnaround and endorsed embattled Ald. Ted Matlak over Scott Waguespack.
According to the article, Zaryczny didn’t file any campaign finance reports during the election season.
* Here’s more local election coverage, compiled by Paul Richardson…
* I noticed a lack of coverage of a few tax and spend-related issues when I returned from vacation.
* The first example really isn’t a surprise, but it’s the first time that House Speaker Michael Madigan has come out and directly said that Illinois is heading for a tax increase, one way or another…
“Before we finish the budget in May or June, Illinois is going to need a tax increase,†said Madigan, a Chicago Democrat, during an appearance this week at the College of Lake County’s Lakeshore Campus in Waukegan. “You’ve heard it many, many times: We need more and better education. That takes money.â€
Madigan contends a state budget relying solely on the current tax structure would be unable to garner enough votes for approval. It’s projected that the state will have an additional $1 billion in the budget to spend if no changes are made to state taxes. But nearly $600 million of that is legally obligated to the state pension system.
The remaining $400 million likely isn’t enough to appease lawmakers who want to see meaningful increases in education spending, health care, law enforcement and other programs and projects.
“The notion you could find a majority in the House or Senate to vote for a budget under those circumstances, I think the speaker feels is pretty remote,†Madigan spokesman Steve Brown elaborated Thursday.
* Last Monday, AFSCME executive director Henry Bayer sent a memo to his local presidents announcing that the governor had backed off his plan to lay off 203 Department of Corrections employees. The initial layoff decision followed the recommendations of a year-long study of staffing levels, at a cost to taxpayers of $450,000. AFSCME has long complained about low staffing levels throughout many important state agencies.
* AFSCME won’t endorse the governor’s budget, however. The union wants to see much more money spent on frontline staff. But, as YDD notes over at Illinoize, AFSCME’S favorable nod for the GRT could finally bring in the Illinois AFL-CIO, which has been sidelined while AFSCME worked out a deal.
As Capitol Fax reported earlier, AFSCME’s lukewarm reception to the GRT was standing in the way of an AFL-CIO endorsement of the GRT. That obstacle appears to have been removed now. I doubt an all-out push from the AFL-CIO is all that far behind, especially since former AFL-CIO head Margaret Blackshere chairs the committee paying for all of the Governor’s t.v. ads. […]
Although it’s a small step, the AFSCME endorsement could result in a giant leap if the leash comes off the AFL-CIO. Full engagement of the AFL-CIO means it will be difficult for Speaker Madigan to act as the lone stopper for the Governor’s plan, sans a viable alternative.
* Capitol Fax subscribers heard about this development a couple of weeks ago, although the publication wasn’t credited in last week’s SJ-R story…
llinois State Police removed the security detail assigned for more than a year to state Comptroller Dan Hynes and denied state Treasurer Alexi Giannoulias protection he requested for a Chicago event within days of the two officeholders criticism of Gov. Rod Blagojevich’s business-tax plan.
Spokespeople for Hynes and Giannoulias question the timing. But a spokeswoman for the governor strongly denied that security decisions by state police - who are under the control of the governor - have anything to do with policy positions taken by the statewide elected leaders. […]
Cmdr. Mark Piccoli, head of the executive protection unit within the state police, said that for constitutional officers other than the governor, protection is “based on threat assessment.” […]
But Scott Burnham, spokesman for Giannoulias, said the treasurer twice received police protection for large events in the past when no threats were involved.
* Meanwhile, you probably heard about these developments because they are nepotism items…
Soon to marry one of Illinois’ most powerful politicians, Lorrie Rickman Stone was promoted to a new state job in September 2005.
Two months later, she wed Senate President Emil Jones. And two months after that, her salary had soared by nearly $70,000.
The Blagojevich administration created a special salary class for her position alone, so the psychologist - now Lorrie Rickman Jones - saw her pay rise from $116,460 to $186,000, a 60 percent increase, The Associated Press found after a review of state documents.
And…
The Blagojevich administration rescinded its rule that the state’s mental health chief be a medical doctor just before the wife of Senate President Emil Jones got the job.
A top Jones aide and the state Department of Human Services insist the promotion of Lorrie Jones, a psychologist, was legitimate under state law. But a government watchdog called the move “curious” given that the job was tailor-made for the spouse of Blagojevich’s top legislative ally.
And…
Gov. Blagojevich’s administration hired Senate President Emil Jones’ son for a $57,360-a-year state commerce job at the same time Jones emerged as the chief legislative advocate for a contentious new business tax pushed by the governor.
Emil Jones III began as the Department of Commerce and Economic Opportunity’s manager of real estate development April 3.
* More tax and spend stories, compiled by Paul Richardson…
* Report: $466 million could be saved by shifting health insurance burden
*** UPDATE *** Aaron Chambers tells us that the Senate will have a hearing on the GRT this Wednesday, but there will be no vote…
Senate President Emil Jones Jr., D-Chicago, backs the governor’s plan. And at 1 p.m. Wednesday, Jones will convene a hearing on it.
Committee members are not expected to vote Wednesday, however. Jones spokeswoman Cindy Davidsmeyer told me Friday that senators need more time to soak up the governor’s plan.
Judging from the chilly reception that Blagojevich has received from lawmakers since he announced his concept in early March, I’m guessing that the committee won’t be voting simply because Jones has not mustered enough support among his Democrats to win committee approval.
On March 29, Cross offered a good amendment that creates a higher burden of proof for law enforcement: Prosecutors would have to prove that a defendant intended his or her sexually explicit online conversation to lead to illegal sexual contact.
* Governor Blagojevich had heard during the statewide tour last week that y’all were giving me a bit of grief here about getting on the bus. So, at the beginning of an on the record interview he played a little practical joke on me for your benefit…
I was probably more surprised than anyone when I was invited to tag along on Gov. Rod Blagojevich’s road trip last week. The governor toured the state to push his universal health insurance plan and his gross receipts tax on business. I was on the bus with him for three days, and we talked for countless hours.
I had a cordial relationship with Blagojevich back when he was in the Illinois House, but that was a long time ago. Over the years, the governor granted interviews to almost every other news bureau in the Statehouse, but I was excluded. He has visited the editorial boards of every major, and quite a few minor, newspapers in the state — but I was kept away. During one press conference a few years ago, Blagojevich refused to answer any questions from me at all, so I whispered my questions to a couple of willing Chicago TV reporters who relayed them on my behalf, knowing he couldn’t ignore them.
That’s not unusual. I wasn’t given much access to George Ryan. One of Ryan’s top aides once threatened to put my political newsletter out of business. I was granted almost no access at all to Jim Edgar, and one of his former aides once helped draft a piece of legislation designed to put the company I wrote for back then out of business.
And also includes this bit…
He does seem to grasp the political dangers of the gross receipts tax. He admitted he knew that his proposed $7 billion tax hike could make him another Richard Ogilvie, the Illinois governor who was ousted in the 1972 election after imposing a brand new income tax. Blagojevich said he was willing to “wear the jacket” and take all the blame for his tax increase.
If Blagojevich’s approval rating was higher, that would be a much easier task. Legislators could simply hide behind his political skirts. But since his ratings are so low, particularly downstate, he can’t provide legislators much, if any, cover. He may be willing to lose his job over this tax hike, but most of them aren’t.
* And the Tribune’s John McCarron has a thumb-sucker today about how Pat Quinn ought to negotiate a tax hike compromise…
So who is going to step up and unravel this mess? Not any of the obvious candidates. The governor appears satisfied to star in his own road show, indifferent to whether anything actually gets accomplished. Speaker Madigan is a master poker player, but that doesn’t help when the other players are dealing their own games. President Jones, unlike Madigan, at least communicates with the governor, but his veto-proof Senate majority exists mainly on paper. When the heat gets turned up for a tax increase, his Senate soldiers from swing districts likely will run for cover.
That leaves Quinn, who as the “lite” governor, has no votes or vetoes, but whose populist credentials are unassailable. He just might relish the role of peacemaker as he burnishes his record for a possible run at the governorship in 2010. Like former President Richard Nixon going to China, Quinn might be able to convince business Republicans that they do, indeed, need to pay a bit more. Not the $7 billion sought by the governor’s mega-gross receipts tax plan, but maybe half that.
Quinn has no vote, no veto and, therefore, no seat at the table. The legislative leaders and the governor won’t let him into the back room. And it’s wishful thinking, to say the least, that the business groups will somehow try to work through him.
Knowing Madigan and Jones as I do, I seriously doubt they’ll listen to him. And after spending a few days with Blagojevich last week, I can tell you that he’s in no mood to bring Quinn in, either.
Anything can happen, of course, but Pat Quinn negotiating the final tax deal is probably not something you should bet your house on.
*** UPDATE *** Completely off-topic, but I’m trying to avoid work, so I’m putting it here. Ald. Joe Moore has a new TV ad that takes some big whacks at his opponent Don Gordon.
