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Eric Krol does a pretty good job today of summing up the problems facing the governor’s gross receipts tax as the session clock ticks away…
To see what a rough road Gov. Rod Blagojevich’s business-tax-for-health-care plan faces, look no further than Tuesday’s pep rally with the AARP.
The nation’s largest senior advocacy group endorsed the governor’s proposal to help provide a majority of the state’s 1.5 million uninsured obtain coverage. But AARP officials declined to back Blagojevich’s gross receipts tax on businesses that would pay for the massive health-care expansion.
[Emphasis added]
And then there’s this…
Even over in the Senate, where President Emil Jones Jr. remains a staunch ally, the closed-door talks have yet to begin in earnest. State Sen. Donne Trotter, a Chicago Democrat and Jones’ lead budget negotiator, said he’s not been involved in any talks about the governor’s tax or health care plans.
“I don’t have a clue,†he said.
Yesterday, Krol put up this post on his paper’s bloggy-type thingy, Animal Farm…
Blagojevich was asked if House Speaker Michael J. Madigan is talking to him about the gross receipts tax and how the meetings went. Blagojevich responded that he doesn’t think it’s appropriate to provide the details of private discussions with Madigan…
Perhaps one reason the governor didn’t want to give up any details about talks with Madigan is that no meetings have actually taken place. That’s what Madigan spokesman Steve Brown told my colleague John Patterson this morning.
This made me laugh…
At one point, Blagojevich asked for a clarification as to whether it was April or May.
Oy.
Meanwhile, Carol Marin makes a prediction about the final deal that is as valid as anything else out there right now…
Maybe a cobbled-together tax proposal that raises the threshold on the GRT from $2 million to $20 million in taxable gross revenue coupled with a little bit of everything else, small increases in the sales and/or income tax plus property tax relief, tossing in for good measure, more new gambling positions and a few new casino licenses.
But not before everybody gets a little pork. It won’t be pretty. Nobody will be happy.
And count on it, it will only delay, not avert our current crisis.
More budget stuff, compiled by our intrepid intern, Paul Richardson…
* Editorial: Message here is very clear on GRT
* Education rally may draw thousands
* Local teachers rally in Springfield for funding
* Education experts participate in forum
posted by Rich Miller
Wednesday, May 2, 07 @ 8:43 am
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The problem with the cobbled-together last minute deal predicted by Carol is that we the taxpayers will have little or no input into the final version so we won’t know who the winners and losers are. We know that legislative pork (Emil’s Earmarks) will be a huge winner, as will contractors with ties to the guv and his pals. But if the legislators decide to stick it to small or big business, the middle class (remember, legislators are very skittish about taxing the rich) or to the Cook suburbs, or to Downstate (unlikely Chicago will fare poorly), we won’t have a chance to protest before they rush it through. If they decide to pour money on the heads of teachers and school bureacrats, we won’t have even a chance to protest. But we’ll be paying, especially the unlucky among us.
Taxpayers would be well advised to start demanding now that residents be given time to review any tax schemes their legislators and the guv may be dreaming up to replace the GRT or 750 That means public hearings with the legislator for the district present.
Otherwise, a lot of us are going to have our pockets picked—I’m just not sure which of us.
Comment by Cassandra Wednesday, May 2, 07 @ 10:30 am
I hope Carol Marin is wrong about the “delay, not avert” part. This is the time and the opportunity to do it right, and actually solve the existing budgetary problems, not delay the day of reckoning. You don’t get many bites at this apple per generation (our last income tac increase was 20 years ago).
I think all 3 of the main players understand what needs to be done, though they may disagree on the mechanics. The pension problem needs to be addressed, with a real solution. Education funding needs to be addressed. It would be good if over-reliance on property tax could be addressed. And, the budgetary structural imbalance needs to be solved.
The question will come down to which, if any, of them, will rise to the occasion. I am hopeful, perhaps optimistic.
Comment by steve schnorf Wednesday, May 2, 07 @ 1:50 pm
Oh, and C,
every single person making these decisions will have been elected, and in most cases, repeatedly re-elected, by the very taxpayers who you say will have no input. That’s pretty much how we do things in representative forms of government. You know what Pogo said.
Comment by steve schnorf Wednesday, May 2, 07 @ 1:53 pm
I would hope that most of our elected reps are consulting with their constituents before proceeding to hit us up for billions. Just because we elected them doesn’t mean we should give them advance approval for whatever they might decide to do. At least we have had an opportunity to weigh in on GRT and 750. A last minute deal as described in Marin’s column will have no transparency at all until the deed is done, so we will have no opportunity to weigh in on it. Only to pay for it.
Comment by Cassandra Wednesday, May 2, 07 @ 3:01 pm
test
Comment by Ryan Wednesday, May 2, 07 @ 5:56 pm
another test
Comment by Ryan Wednesday, May 2, 07 @ 5:57 pm
more posts
Comment by RC Wednesday, May 2, 07 @ 5:58 pm