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There’s reality and then there’s reality… Plus, what’s next? * Updated x1 *

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Illinois

* The governor’s grasp of reality, or lack thereof, was on full display yesterday when asked about the overwhelming House vote against his gross receipts tax…

“There’s ups and downs, but (I) feel good about it,” Blagojevich said after an appearance in Chicago. “Things went pretty well today.”

* And…

“Today, I think, was basically an up … I feel good about it,” he said.

* And…

Blagojevich spokeswoman Rebecca Rausch said her boss’ tax remains alive despite not getting a single vote of support.

* My Sun-Times column takes a look at the alternative realities that both the governor and President Bush have constructed for themselves and have attempted, without much success, to impose on the rest of the world.

Both men appear to have constructed their own realities, where all results are predestined to succeed because they fervently wish it so, regardless of the actual “real world” realities where the rest of us reside.

* But, like with Bush, things are changing fast around Blagojevich, despite his insistence that everything is fine and dandy. The Tribune and I both reported this morning that Senate President Emil Jones met with House Speaker Michael Madigan yesterday to discuss the tax situation. The Tribune also offers up this tidbit from Senate Majority Leader Debbie Halvorson, which is a big signal that the ground has shifted…

Afterward, a top Jones deputy, Senate Majority Leader Debbie Halvorson (D-Crete), suggested it is time to consider a “Plan B,” which might be a mixture of other taxes.

* But the governor says he isn’t budging…

Blagojevich told the crowd that big business lobbyists in â€œGucci loafersâ€ were trying to kill his plans for expanded health care. And he warned that a final deal on the state budget may be â€œeven monthsâ€ away.

* Jay Hoffman, however, signaled a possible alternative…

Rep. Jay Hoffman, D-Collinsville, a close Blagojevich ally, said lawmakers also could look at closing business tax loopholes or imposing a minimum corporate income tax to ensure large companies pay some income tax in Illinois.

“I wouldn’t say that a modified revenue increase on the largest corporations is off of the table,” Hoffman said.

* And Speaker Madigan plans to ask his members next week for new ideas…

Madigan later announced a House Democrat caucus on Tuesday morning to discuss a different tax plan, but no details were available today.

More GRT news, compiled by Paul…

* House rejects governor’s GRT plan

* Governor’s tax proposal suffers resounding defeat

* No surprise as tax plan voted down

* House unanimously turns down GRT

* Sun-Times Editorial: Uplifting ideas alone won’t raise needed state revenue

* Tribune Editorial: Debating what Illinois needs

* Eric Krol: Governor gets his Armageddon but loses first battle

*** UPDATE *** Halvorson more fully explains “Plan B”…

Senate Majority Leader Deborah Halverson says Democrats know thereâ€™s a health care crisis, and schools need more money. Halvorson says itâ€™s time for the egos and testosterone to be put aside. She says Governor Blagojevich should recognize thereâ€™s little support for his Gross receipts Tax and consider plan B. And the Crete Democrat says that doesnâ€™t have to be a hike in the state income tax. She says there are gambling proposals and a plan to lease the Illinois Lottery among those that should be considered.

posted by Rich Miller
Friday, May 11, 07 @ 8:57 am

Comments

If the Governor believes that “Things went pretty well today,” then he is clearly delusional if not totally insane. I note this because Insanity has been used as a valid ground for Impeachment of public officials in our nation’s history.

Comment by fedup dem Friday, May 11, 07 @ 9:25 am
Great column today, Rich. The comparisons between Bush and Blagojevich go on and on.

Comment by Yellow Dog Democrat Friday, May 11, 07 @ 9:30 am
Illinois is getting set up for HB750. Democrats know what they’re doing here… all of them. They’re not stupid and none of them in a fantasy world.

Comment by Bill Baar Friday, May 11, 07 @ 9:42 am
Bill, Can You share your thoughts on why you feel that the Democrats are going to push HB 750. Is this not a more regressive tax then HB750? If so how will they go about getting the needed votes?

Comment by nomoretax Friday, May 11, 07 @ 9:54 am
I sorta think Blagojevich wants to be a modern Huey Long. RB would like to increase tax revenue and expand heath care, education and improve public transportation.

But populists like Huey Long tend to have a strong connection with regular folk they represent from years of pressing the flesh and building credibility.

Blagojevich won not because he’s beloved, but because he clubbed to death Judy “Baby Seal” Topinka with TV ads.

Maybe Blagojevich could be a Huey Long populist if he had power over Madigan and Jones. Maybe he could do it by negotiation.

But Blagojevich doesn’t have power over Madigan and Jones. And Madigan doesn’t like RB and doesn’t trust him.

And, Blagojevich didn’t play his hand well. He banked on appealing to Black ministers. I’m not sure how this was going to provide the base for passing the GRT across the whole state, but it does seem to be the backbone of RB’s plan to pass the GRT.

Comment by Carl Nyberg Friday, May 11, 07 @ 10:12 am
Very Recent Milarod Quotes

~ Thereâ€™s ups and downs, but (I) feel good about it,â€ Blagojevich said after an appearance in Chicago. â€œThings went pretty well today.â€ = 107 - 0 - 7

~ â€œToday, I think, was basically an up â€¦ I feel good about it,â€ he said.

~ Blago accused legislators of being too cozy with business interests who “eat fancy steaks” and “shuffle around in Gucci loafers.”

Oh, I suppose you the Governor of Illinois shops at Walmart and Aldi. Who needs medical marijuana when we have you â€œGovenor Crack Me Upâ€.

Comment by Eugene Friday, May 11, 07 @ 10:16 am
IMO, Madigan needs the Session to go to overtime in order to draft Republicans into his veto-proof coalition. The question is whether Cross and Watson want to participate or sit it out. In OT Jones would essentially have to keep all of his folks together in order to sustain a Governor’s veto, and given the recent trust issues resulting from the Ameren/ComEd vote, he may have trouble within his caucus. That could put Watson into play.

At this point, I think the Governor has lost relevance in the budget negotiations. In fact, I’m not sure the Governor ever really was relevant, and I believe Madigan and Jones will ultimately develop the budget, including the amount and avenue for new revenues, without him. Look for expansion of gaming to be part of the equation.

They’ll likely give the Governor some of his healthcare initiatives in order to let him save some face. However, education and property tax relief will be the primary public policy goals, while gaming interests will be tertiary beneficiaries.

Comment by Overtime Prediction Friday, May 11, 07 @ 10:41 am
Milorad is a problem. He lacks even a rudimentary understanding of how business in a nominally capitalistic country is conducted. His true colors were displayed when he grunted the phrase: “Unfortunately, we live in a democracy…” (Did people forget this one already?) The MSM did not call him out on this disgusting utterance; I believe I first saw it here from the posters on Capitol Fax.

Comment by Reality Friday, May 11, 07 @ 11:46 am
Any corporate loopholes that get put up for changes will likely draw the same hue and cry from the affected part of the business community, as will any changes in the corporate income tax.

So it’s back to 750. Bill may be right. And the Dems in the know, most of whom, for some reason, really, really want to raise our income taxes, and really, really don’t want to tax the business community, may, therefore, see the GRT fight as a sideshow leading to the big show. Emil and Madigan shove through 750 and Blago gets to say, for all eternity, I tried to keep the people’s taxes down but the legislature wouldn’t let me. While gleefully spending the money, of course.

Comment by Cassandra Friday, May 11, 07 @ 12:03 pm
We are definitely living in a bazarro world. Rod was at a rally yesterday and complained about lobbyist in Gucci loafers. This from a guy that buys $10,000 Armani suits.

Comment by Lula May Friday, May 11, 07 @ 12:42 pm
Perhaps Governor Inept could help his own image by admitting that he actually had a bad day this week instead of being the only person in this State who is in denial and sending his press people out to make fools of themselves on his behalf.

Comment by Little Egypt Friday, May 11, 07 @ 12:50 pm
What was up with the rally Rod had at the Thompson Center? What did Gov. Loopy have to say about the days events anyway?

Comment by Papa Legba Friday, May 11, 07 @ 1:08 pm
Contrary to what people say, the Governor is not who hw believes he is — a state or a party leader. He believes that he is a coalition of one.

Comment by Truthful James Friday, May 11, 07 @ 1:30 pm
Do I agree with Bush’s management of the Iraq War? No. But at the same time, I think your analysis of the reasoning to go into Iraq is grossly over-simplified and conveniently forgets a lot of facts.

Comment by Drew Friday, May 11, 07 @ 1:35 pm
After the 107 to 0 defeat of the GRT, the gov’s machine had the gall to play a tv commercial touting the plan as if it were still the only solution. Totally unbelievable - still in campaign mode style and it is really getting terribly shopworn. There really is an empty suit in the gov’s office. I may not like Madagin’s solution to the issue, but I will respect the process he will cause to be followed. I trust MM but not the other two.

Comment by A Citizen Friday, May 11, 07 @ 3:40 pm
anomalistic

Comment by i d Friday, May 11, 07 @ 3:51 pm
The Big Scoreboard

Weasel - 0
Illinois - 107
Playing both sides - 7

Comment by Death & Taxes Friday, May 11, 07 @ 3:58 pm
the GRT is just a sideshow to keep people occupied while the state income tax is raised. The Gov is trying to make raising income tax look like a good alternative. NO NEW TAXES BETTER MONEY MANAGMENT IS NEEDED.

Comment by fed up Sunday, May 13, 07 @ 3:49 pm