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* The Pat Quinn story isn’t going away yet…
Gov. Rod Blagojevich suffered a very public rejection from within his own administration Thursday as Lt. Gov. Pat Quinn disparaged the tax and health care plans that Blagojevich has made his top priority.
Calling a news conference at the state Capitol, Quinn said the governor’s proposal for a new $6 billion business tax would end up hitting “ordinary people” in the pocketbook.
“That levy would be passed on to consumers, and I don’t think that’s the right way to go,” he said.
Quinn also said expanding health care and pumping new money into schools can be done over time and doesn’t have to be accomplished immediately, as Blagojevich has proposed
* More…
Whereas Blagojevich’s plan raises nearly $7 billion by taxing businesses, Quinn prefers to empower a panel to go through state tax breaks and eliminate those deemed unneeded. He predicted that would raise nearly $2 billion in its first year. […]
Quinn said all new tax dollars from his plan would be set aside to pay for property tax relief, education spending and health care. But there would not be enough money to finance the massive expansion of health care and education Blagojevich unveiled earlier this month.
A spokeswoman for the governor’s budget office blasted Quinn’s plan as unrealistic.
“We’ve pushed for four years to close corporate loopholes. The General Assembly has consistently opposed those efforts,†said Becky Carroll. “We don’t think it’s right to ask our schools and the uninsured to wait for years for those tides to change.â€
* The president of the Illinois Education Association, Ken Swanson, chimed in as well in a press release yesterday…
While we are pleased the lieutenant governor has entered the school funding discussion, his proposal is woefully inadequate.
The Illinois Education Association believes any school funding reform proposal must deliver adequate funding to public education through a revenue stream that is predictable and sustainable. The Lt. Governor’s proposal falls short on all counts. The projected revenue from this plan comes no where near the level needed to close the achievement gap in Illinois.
Thousands of students, in every part of the state, are being denied the resources necessary to get a high quality education. Changing this system demands a bold plan and that is why the Illinois Education Association supports the Gross Receipts Tax proposal. We are urging the members of the Illinois General Assembly to support this proposal.
* But just about every farm group is registering in opposition to the gross receipts tax…
Bart Bittner, spokesman for the Illinois Farm Bureau, said that regardless of their revenue, Illinois farmers will be hit hard by the tax thanks to the increased cost of supplies.
“It impacts all farms whether they generate $1 million in gross receipts or not because of the (cost) pass-on that comes from the input side of things,†he said.
Bittner said that because agriculture prices are driven in large part by commodities markets it would be difficult for producers to set their own prices to recoup their losses.
Illinois Department of Agriculture Director Chuck Hartke said opponents of the tax are neglecting the savings that it will create, particularly in the area of health care.
* And the Daily Herald takes a look at how one aspect of the governor’s health plan would work…
As part of a sweeping health-care proposal, Gov. Rod Blagojevich wants to give parents the option of including children age 29 and under on their policies, rather than 19 and under.
“They are the kids that are now grown-up,†Blagojevich said earlier this month. “They’re mostly healthy, but Mom and Dad are worried, understandably so, that God forbid, something happens and they don’t have health insurance.â€
Few details have been released and, at this point, it is unclear how many people would sign up or when the program would start. The only clear-cut condition is that it would apply only to families making less than $80,000. A Blagojevich spokeswoman said everyone within the age and parental income categories could be covered.
* Action for Children President: Governor’s health insurance plan must be Ok’d
* Tribune Editorial: Scale it back Governor
* Editorial: Take it slow on health care reform
posted by Rich Miller
Friday, Mar 23, 07 @ 9:24 am
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There’s going to be a huge sucking sound coming from the State of Illinois very soon. The Gross Revenue Tax is going to raise the costs of EVERYTHING.
To bad Governor Blagojevich doesn’t have a ship in a Chicago Harbor, Pat Quinn could host a real Tea Party.
Comment by Welfare State Friday, Mar 23, 07 @ 9:38 am
Someone should actually through tea bags at the governor!!!
Srsly though it’s starting to look like an even tougher fight already. So many groups in opposition. Having gripes about whether this new tax could hurt them.
Comment by Levois Friday, Mar 23, 07 @ 9:46 am
I would have loved to hear the comments when they found out that Quinn did this. I am sure smoke was coming out of people’s ears!!!
When is Patti coming out against it?
Comment by He Makes Ryan look like a saint Friday, Mar 23, 07 @ 10:01 am
If this plan is to close corporate loopholes, then go after corporte loopholes. Stop trying to make a company with $2M in revenue the same as Sears, AT&T, Jewel, WalMart, Ameren, or ADM. Plenty of local companies with good sales and equally high expenses where they barely get by.
Our local grocery store has sales of about $400,000 a week. Profit margin averages about 1.8%. They are far from a huge corporate entity. All these changes will raise the cost of hamburger, milk, and Q-tips locally through GRT pyramiding and increased health care costs. They will have no choice but raise prices, if they want to remain in business.
Comment by zatoichi Friday, Mar 23, 07 @ 10:49 am
The IEA sat out the Governor’s race last year, but now is slobbering all over itself to support G-Rod’s Tax. Huh? Deep down they are just a union, but they had made great strides in the past 15 years or so to come across as a professional and somewhat independent voice for classroom teachers and public education.
This embracing of the GRT with no regard to what it will do to the “customers” of education (the employers of this state) dumps them right back into the same category as the IFT: unquestioning lap dogs for Governor. What a turnaround: from a principled stand to unmitigated greed in a matter of a few short months!
Comment by Sarge Friday, Mar 23, 07 @ 11:22 am
It’s about time Patrick Quinn start speaking his own mind.
4+ years of being Governor Blagojevich’s lap dog is quite enough.
Now da Guv has two Patrick’s looking over his shoulder. Hee, Hee, Hee.
Comment by Sieze the Day Patrick! Friday, Mar 23, 07 @ 11:42 am
Quiin is making sense, which is more than I can say about Gov. Sleazy’s budget scheme.
Comment by fedup dem Friday, Mar 23, 07 @ 12:25 pm
Really Sarge? Or could it be that the IEA’s principled stand in the race has led Blagojevich to realize he needs them on his side?
And what’s wrong with deep-down being a union?
Isn’t part of the idea of unions to be a voice of advocacy for its members? Isn’t advocating for increased funding for public education doing just that? How is that any different than the state C of C advocating against a tax that will potentially cost its members money? Those seem like pretty similar tasks to me.
Comment by YNM Friday, Mar 23, 07 @ 12:30 pm
Governor Quinn needs to press beyond just corporate tax loopholes and make some serious recommendations on overhauling the entire taxing system in Illinois.
Comment by A Citizen Friday, Mar 23, 07 @ 12:37 pm
Serious question that I have heard over and over again without an adequate answer, Why did the Gov. not go to statewide elected officials and other Dem power figures and get on the same page before the GRT was proposed? Or did the Gov. talk to them and still go maverick on everyone? Anyone know??
Comment by Tony Friday, Mar 23, 07 @ 12:56 pm
Why is Quinn sounding gubernatorial? This is the guy who was our Jerry Brown, our Don Quixote, charging at wind mills and looking naive.
He wasn’t supposed to get a second act in Illinois politics. But now he is on stage and sounding gubernatorial?
This is what happens when we have a governor many consider simply unhinged and bloviating.
Blagojevich’s blathering wears you down and makes you throw up your hands and walk away leaving him to his own devices. You just give up. There is something to this approach. But this approach might work for Ronald Reagan and Rod’s first term, but it seems people are serious now. The Governor’s approach in handling this isn’t working anymore, if it ever did.
We gave Blagojevich four years to iron out our fiscal problems. He got a lot of slack, whether he claims otherwise. With his Annual Budget Message he has “jumped the shark” and it seems everyone want him to just go away and leave the governing to the adults now.
We can’t have an ineffectual governor. Blagojevich needs to get whatever mojo he had left after the election and return to work.
Springfield is that-a-way Rod.
Comment by VanillaMan Friday, Mar 23, 07 @ 12:58 pm
I’m with Pat on this one, but only as a first step. Close the corproate tax loopholes, but then do the swap; real estate and income taxes. Also, how about a little real (not IL) style GOP government waste cutting for good measure. I’ll say it again. Too bad, Pat isn’t the Gov instead of Rod. What a waste!
Comment by Niles Township Friday, Mar 23, 07 @ 1:08 pm
Maybe we need a (non?)binding resolution on Quinn for Governor 2007/8.
Comment by A Citizen Friday, Mar 23, 07 @ 1:17 pm
I amazed that there has not been more about the payroll tax. The payroll tax would hurt employment in Illinois and the salaries of workers
Comment by RMW Stanford Friday, Mar 23, 07 @ 1:42 pm
Thievery Incorporated = Gross Revenue Tax
Comment by Time To Step It Up Mr. Quinn Friday, Mar 23, 07 @ 2:05 pm
Could this GRT thing be a way for Rod to divert attention away from all the corruption that surrounds him, his wife, his friends and his administration?
Before this GRT thing broke into the news, they probably sat around thinking what kind of bone should throw to the media and the masses to get them off our backs and make Rod out to be Holier then thou.
Comment by Bubble Universe Friday, Mar 23, 07 @ 2:19 pm
The governor, so far , has shown tremendous leadership with his plan to move Illinois toward fiscal solvency after over 30 years of mismanagement. The first term was mostly spent dealing with recurring fiscal crises which were dealt with,one at a time, without raising sales or income tax. More money went to schools than under any other administration. Thousands of previously uninsured children now have access to health insurance. Thousands of 3 and 4 year olds now have access to pre-school.
Now, in his second term, Governor Blagojevich has unveiled a bold plan to move this state forward. $10 billion more for education over four years. $26 bilion more to start to solve our pension crisis. Expanding access to health care for ALL Illinois citizens. Yes, there will be a burden, but the Governor is committed to making sure that for the first time in this state big business will pay its fair share.
During his first term, every innovative solution, every ground breaking program was met with a barrage of personal insults leveled against Blagojevich by woefully biased and partisan commenters, greedy right wing whackos, and media hacks.
Now, in the second term, his plan to make Illinois a leader in services to its citizens and at the same time solve the lingering fiscal problems that have festered for decades is met, for the most part, by the same personal attacks, innuendoes, and unsubstantiated allegations.
As usual, there is no alternate plan, no suggestions for solutions, no debate on the merits of the plan. All we have are the same type of personal insults, attempts at character assasination, and attempted humor about where the Governor’s family chooses to live, and every once in a while we get the “sky is falling” diatribe. All the businesses will leave. Noone will be here to give us our haircuts. Even those poor lawyers will have to pay some state taxes for a change. Maybe even some lobbyists will have to share the burden. OhNo!!!!!!
There are some alternatives to the Governor’s plan.SB/HB 750 is an example. Not suprisingly, they are proposed by progressive democrats. Quinn’s plan to close business loopholes is a good one, but not sufficient.
We cannot cut our way out of this state’s structural deficit. We need to enhance revenue now. Let’s debate the plans. Let’s compromise. Let’s arrive at a solution. Personal insults and attacks might be more amusing to many of you but really do nothing to solve our state’s problems. If you don’t like the Governor’s plan present one on your own . Do something besides spouting the typical republican refrains, insulting the governor, and wasting everybody’s time repeating the horror stories encouraged and paid for by the Chamber, IMA, and IPA and the other usual suspects.
The people of this state demand more. Become part of the solution for a change.
Comment by Bill Friday, Mar 23, 07 @ 2:50 pm
Bill, Thankyou for your recent usual thoughtful correspondence. Again, A complete overhaul of the state’s taxing system - Probably would result in an increase of state income and sales taxes on both individual and corporate entities. Eliminate the Property Tax. In the overhaul process corp. tax “loopholes” can be modified or eliminated as well as other offsets. It is time for a NEW tax model, not just tacking on a new one that will in fact cost individuals more than business as the costs are paid by the final consumer.
Comment by A Citizen Friday, Mar 23, 07 @ 3:15 pm
Bill
Please quite labeling everyone. We are all entitled to our opinions whether you agree or not.
Also, Rod said on more than several occasions that he wouldn’t compromise nor debate. It was his way or the highway. Now that’s mature….
By the way Bill, do you have altar at home with a statue of Rod on it?
Comment by Bill's diatribe Friday, Mar 23, 07 @ 3:15 pm
Citizen A,
Now you are talking! Don’t forget extending sales taxes to services. Replacing the property tax for certain spending related to education might fly if state fudning is increased but I don’t think local units of gov’t would go for total elimination.
Comment by Bill Friday, Mar 23, 07 @ 3:26 pm
Bill’s diatribe:
Whoops, there you go again. I guess you just can’t help yourself.
Comment by Bill Friday, Mar 23, 07 @ 3:28 pm
It’s must be vast right-wing conspiracy Bill.
Rod did say no compromise, no debate.
Please don’t pout…
Comment by Gas $4.00 per gallon Friday, Mar 23, 07 @ 3:48 pm
Rod will never compromise his dedication or his efforts to making sure that all citizens of Illinois have access to health care, that all students in Illinois have access to a quality education in a decent school building with a highly qualified teacher, and that all citizens can be safe and have the opportunity to improve the quality of their lives, and that Illinois has a tax system that is fair and that everyone including business pays their fair share.
Comment by Bill Friday, Mar 23, 07 @ 3:55 pm
Love reading your posts, as usual, Bill!
Listen to Pat Quinn and stop supporting Rod Blagojevich. Pat recognizes that before you start asking for new taxes, you optimize the laws on the books to gather the taxes legally owed the state. Then you optimize the government side of the equation so that the level of waste and fraud is minimized.
After this is done and all the facts have been checked, all the accounting have been done - you look at what money is needed to meet the current budgetary needs without any new programs.
If there is any money left over, new programs can be looked into. However, it is also entirely possible to simply use current social programs and enhance them to meet the needs seen by the governor.
Until that is done, you don’t ask for more money. You don’t insult your tax base by claiming they are defrauding you. You don’t create civic disorder by claiming someone is a “fat cat”. You don’t cut TV ads that insult the people you need to support you. You don’t print brochures and insult these people on paper. You don’t campaign around the state and insult everyone who disagrees with you. You don’t go into churches and claim to be doing God’s work.
Instead, you act like a governor of a major US state. Mature, intelligent, and like an adult.
We have yet to see that in this case - right?
Comment by VanillaMan Friday, Mar 23, 07 @ 4:01 pm
Bill…
Having access to health care is not exactly getting health care, especially when Doctor’s are refusing to see kids for health related problems because they can’t get paid for their services. Plus you state…”The first term was mostly spent dealing with recurring fiscal crises which were dealt with,one at a time, without raising sales or income tax.” How was the Pension debacle dealth with? Is it now solvent? Inquiring minds want to know…
Comment by Siyotanka Friday, Mar 23, 07 @ 4:06 pm
We will all be looking forward to getting our very own “health insurance free card” from Rod in the mail.
Can’t wait!
In couple years this too, will be underfunded.
Comment by No Compromise; No Debate Friday, Mar 23, 07 @ 4:08 pm
VM,
As you repeatedly point out, the governor promised to end business as usual. No more back room deals. No more compromising ideals and principles. The Governor is taking his case directly to the people.I am glad that you are supporting Quinn’s initiatives. For once, we agree! When this legislative session is over, Illinois will be a major state that will be a model for other states to emulate. Quinn, along with President Jones and the governor will be lauded as the dedicated, caring, competent officials who did right by Illinois citizens despite political and financial pressure exerted by individuals and special interest groups. I hope the other so called leaders in this state act like the mature intelligent adults they supposedly are and support the governor’s plan.
Comment by Bill Friday, Mar 23, 07 @ 4:21 pm
Bill, as a followup - I would insist on elimination of the Property Tax. The local governments relative share for townships and counties and municipalities can be factored in with a schedule as to how those revenues (Sales and Income) would be distributed. Likewise the schools share could be factored on a $/student basis with a separate provision for cap. improvements. As our elderly retire on fixed incomes the Property Tax with the huge increases forces them out of their homes. The out of control energy cost increases will hasten their loss of their homes. And that has yet to address rising medical care costs. The complete overhaul would necessarily take all of these factors into account. Both the elderly and the young just getting started must be able to afford a reasonable lifestyle. Bankrupting citizens with poorly structured taxes, rising medical costs, and exhorbitant energy costs is not an alternative.
Comment by A Citizen Friday, Mar 23, 07 @ 4:22 pm
I don’t think Blago can get re-elected enough times to bring forth a complete overhaul of the Illinois tax system. Or even a closing of corporate loopholes. Even if he were not partial to glitzier, more dramatic proposals.
And our legislators are even less capable of
doing anything both long-term and complex.
I think it’s going to be the GRT or the tax swap with or without a lottery sale.
Anything else is too complicated for our fearless leaders.
Comment by Cassandra Friday, Mar 23, 07 @ 4:26 pm
Cassie,
The GRT and the tax swap do not have to be mutually exclusive. We could have some combination of the two. I don’t like the property tax either and CitizenA’s point is well taken. I support Rep. Lang’s bill to outlaw the property tax. This would force the legislature to revamp, but I agree that that is highly unlikely.
Comment by Bill Friday, Mar 23, 07 @ 4:36 pm
Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois:
“Feeding frenzy going on in the spring of 2004″
“Pay to play on steroidsâ€
Stuart Levine; top Blagojevich fund-raisers Antoin “Tony†Rezko and Christopher G. Kelly, and longtime Springfield insider William Cellini with more to come.
Comment by And the saga continues Friday, Mar 23, 07 @ 4:43 pm
Our governor promised to end business as usual. No more back room deals.
Give us a break Bill!
Comment by Ever gullible public Friday, Mar 23, 07 @ 4:55 pm
Bill -
It’s very difficult to debate the Governor’s plan on it’s merits when he hasn’t even put it into legislative form.
Keep in mind that he first proposed selling/leasing the Lottery over a year ago, and he still hasn’t shown us the details of that proposal in writing. First it would bring in $10 Billion, then $12B, then as much as $15 Billion. Now we’re back to $10 billion again.
We do know from his “fact” sheet that half the companies grossing $50 million or more in Illinois didn’t pay taxes last year. But what we don’t know is why he’s taxing companies that make $1 million or more.
We know he says that small businesses will be protected from tax increases, but the federal government defines a small business as one that earns $25 million or less, and state law defines it as a company with fewer than 50 employees, regardless of income. And even his own budget gurus admit there’s no way to guarantee that companies hit by the GRT won’t pass the costs along to their small business customers and consumers.
Finally, and let’s make this clear, professional partnerships like law firms, accounting firms, and medical firms do pay income taxes. What they don’t pay in corporate income taxes is paid as personal income taxes by the partners themselves. Rod’s gross receipt tax would tax all of these partnerships TWICE. Now, I don’t work at one of these professional firms, and I won’t be paying Rod’s GRT directly, but will I be paying it indirectly when I hire a company to do legal work, accounting work, or go to the doctor? You bet I will.
Comment by Yellow Dog Democrat Friday, Mar 23, 07 @ 6:05 pm
This is a tax that will be on the backs of the middle class, period. Basic economics - businesses will raise their prices on products and services and pass this tax on to the everyday Joe. They won’t take the hit. The Governor knows this and misleading the public is shameful. Broken promises…
Comment by Holdingontomywallet Friday, Mar 23, 07 @ 8:01 pm
The GRT is a bad idea and has been a disaster for the economy of the states that have, or have had one.
The GRT drives successful businesses away from the states that have them. Mr. Blago is naive if he thinks businessess will stick around for a GRT. Someone should tell Blago that Boeing moved its corporate headquarters out of Washington state, in large part as a protest against and to avoid the state’s GRT. Also, Microsoft moves its incredibly lucrative licensing division out of Washington to Reno for the same reason. Hmmm, how well is the GRT working in that state? Examples abound…
The more unemployed we have the more dependents of the state we have .. the larger the state government needs to be… the more “GROD” can appear as the state’s saviour! Amen Amen
Comment by missy Saturday, Mar 24, 07 @ 4:23 pm
It strikes me as odd that big business and the chamber of commerce types are so energised in opposition to the GRT when they freely acknowledge that “it will just be passed on to the consummer”. If that were the case (clearly it is not) out of loyalty to their shareholders and “bottom lines” they would gladly swap the swiss cheese like corporate income tax for the GRT they can “just pass on to consumers”. All power to the sheeple, bahhh
Comment by mean people suck Sunday, Mar 25, 07 @ 10:32 pm