Capitol - Your Illinois News Radar

Latest Post | Last 10 Posts | Archives

Previous Post: All over but the goofy lawsuits *** Updated x1 ***
Next Post: Caught in a lie?

Taxes and health care

Posted in:

* My syndicated column this week was about the governor’s amazingly quick turnabout on property tax relief.

Gov. Rod Blagojevich proposed no direct property tax relief during his annual budget address at the Statehouse last week, but he told me in an exclusive interview afterward that he would back the idea if a crucial Senate Democrat demanded it.

* Cheryle Jackson, who was the governor’s press secretary until recently, didn’t have very kind words for the governor’s gross receipts tax during an interview with the Chicago Defender…

Chicago Urban League President Cheryle Jackson told the Defender that she likes what Blagojevich is trying to do, but she doesn’t agree with the taxation of businesses, which would include some small businesses. […]

“The number one creator of jobs in the Black community is Black businesses. Black business owners are the most important factor in creating jobs in the Black community. The Chicago Urban League’s main priority is to help Black businesses grow.”

“What this legislation does is penalizes the very thing that is the answer to economic development and job creation in the Black community,” Jackson continued. “It penalizes and discourages the very thing that is going to increase more jobs and increase more development in the Black community.”

Jackson would like the governor focus on a plan such as property tax relief, which she said would bring more economic development and money for education to African American communities.

* A story in the SJ-R yesterday reported on how Indiana got rid of its gross receipts tax. But buried way down was this

Illinois business leaders predict a gross-receipts tax will lead to lost jobs and hurt economic activity. However, Indiana officials admit it’s difficult to document that getting rid of the tax has led to job growth and increased economic activity.

* I’m not sure I linked to this story before the budget address, but it was a good piece about a study done on corporations that don’t pay Illinois income tax

The Citizens for Tax Justice study found Boeing did not pay income taxes to any state during two of the three years studied, 2001 to 2003. During the two years in which Boeing did not pay state corporate income taxes, the company turned a combined profit of $3.1 billion, McIntyre said.

Other profitable Illinois-based corporations such as Caterpillar, Tribune Co., Sears and Sara Lee successfully avoided paying any state’s corporate income taxes during at least one year of the period studied by Citizens for Tax Justice.

Although tax returns for companies, as well as individuals, are private, the institute was able to determine whether companies were able to avoid state taxes by analyzing documents publicly traded companies must file with the Securities Exchange Commission.

Is it any wonder why the Trib flip-flopped on the GRT?

* The Daily Herald has a brief story about the new ad that Gov. Blagojevich appears in on behalf of his tax hike.

* Insurance giant Aon has some kind words for the governor’s health insurance plan.

Aon applauds Governor Rod Blagojevich’s efforts to craft a health care plan that would provide affordable coverage options to the uninsured and underinsured, and address catastrophic illness and injury. Aon’s own Health Care Trend survey warns about the impact of double-digit health care rate increases.

* Stephanie Silvers of Small Newspapers has a couple of very good stories about the state’s underfunded, slow to pay Medicaid system that patients find bewildering an unhelpful. State Medicaid system overwhelmedDentists hard to find under Medicaid

posted by Rich Miller
Tuesday, Mar 13, 07 @ 6:52 am


  1. I have worked with a local group over several years trying to set up a Medicaid dental clinic. The local dentists understand the need and are willing to help if they could cover their costs. Most of them already do some sort of charity work, but all ask how much can/should they afford to give when the reimbursement is so low. The need to clearly here, but the dentists also need to cover their costs to keep their practice going.

    Comment by zatoichi Tuesday, Mar 13, 07 @ 7:22 am

  2. All I have heard is from camp Blago is that small businesses would not be affected.

    Comment by Wumpus Tuesday, Mar 13, 07 @ 7:47 am

  3. Its good to see that people are able to see thru the Governors rhetoric and see that this tax increase would be bad for the state state’s economy, workers and consumers.

    Comment by RMW Stanford Tuesday, Mar 13, 07 @ 10:42 am

  4. He’ll tax small business all the way down to your kid’s lemonade stand.

    Comment by Brian McDaniel Tuesday, Mar 13, 07 @ 10:51 am

  5. The average new car dealer in Illinois generated revenue of $25 million dollars. Yet over 75% of new car dealers nationwide lost money last year.

    If we put Rod’s 1.5% GRT on the average dealership, they’ll be responsible for $375,000 in taxes.

    I sit on a bank board and see many of the loans for these types of businesses in Illinois. Many are operating on very thin margins already. A majority will have to close with this new burden.

    Comment by Illinois Citizen Tuesday, Mar 13, 07 @ 11:35 am

  6. There needs to be a collation built up against built up against the GRT involving both business groups and community groups like the Chicago Urban League, so that the public can see that this isn’t jsut a matter effect business. That it effects everyone in the state, that it will mean slower economic growth, fewer jobs and higher prices for everyone.

    Comment by RMW Stanford Tuesday, Mar 13, 07 @ 2:33 pm

  7. Is this guy just winging it?

    Just how much thought has he given to his own proposals?

    How does this governor operate? Is all the research and homework done by other groups and he just buys off on what they say? Did he even consider what he was proposing for more than a day or two?

    Does a group just write his Address and he stands there and tries to read it aloud without knowing what it says beforehand?

    Did these people also buy TV air time, create commercials, had him read the commercials before the cameras, and then send him off to the Capital? What does this say about this administration regarding it’s abilities to lead it’s own party toward it’s own governor?

    All those troubling questions and many more pop into my mind when I see a governor who fails continually to address what he needs to address in THE ADDRESS. What good is this guy’s word if he can’t even give an annual address and have it state where he stands on budget issues?

    Especially big ones like a new tax?

    Does he take anything he proposes seriously? It is very disturbing to see our supposed governor campaigning instead of leading on issues as vital as our state budget.

    NOW he is discussing property taxes? They are still taking down the klieg lights at the speaker’s podium! What’s the next big idea he forgot to mention?

    Blagojevich really has no clue about what he is supposed to do, come on - admit it!

    Comment by VanillaMan Tuesday, Mar 13, 07 @ 2:54 pm

  8. Indiana raised its sales tax and overhauled its property tax assessment system to the benefit of biz the same year it killed the gross receipts tax. That, as the story alludes, is why the GRT impact is difficult to document.

    Other tax changes since then only add to difficulty.

    It would be like taking the hundreds of fees Blago has raised and trying to isolate their impact on biz.

    Comment by Hoosier daddy Tuesday, Mar 13, 07 @ 7:24 pm

Add a comment

Sorry, comments are closed at this time.

Previous Post: All over but the goofy lawsuits *** Updated x1 ***
Next Post: Caught in a lie?

Last 10 posts:

more Posts (Archives)

WordPress Mobile Edition available at

powered by WordPress.