By TIM ALEXANDER
Illinois Correspondent SPRINGFIELD, Ill. — The results of a non-binding resolution in the Illinois House last week seem to overwhelmingly indicate that Gov. Rod Blagojevich’s proposed $7.6 billion gross receipts tax (GRT) on businesses is dead on arrival.
Not a single vote was recorded in favor of approving the controversial tax, while 107 lawmakers voted against the resolution, seven voted “present.”
In a strange turnabout that left many lawmakers puzzled, shortly before the vote Blagojevich urged House members to vote against the GRT plan, saying both that it’s too early for members to make a decision and that the plan needs fine-tuning.
Two weeks ago, the House sent a blunt message to Blagojevich when sixty-one lawmakers from both parties signed a resolution opposing the GRT. “Bipartisan support outside of this chamber and in this chamber shows that (the) gross receipts tax is DOA,” said House Minority Leader Tom Cross (R-Oswego), according to a story posted on the Illinois Farm Bureau’s website. “I think we’ve sent a strong message to the governor.”
Chicago Democrat John Fritchey accused the governor of insisting on a budget showdown with lawmakers, and said Blagojevich must drop his “all or nothing” approach to a budget if lawmakers hope to accomplish anything this year.
Illinois State Senator Dan Rutherford of Pontiac sent an e-mailed message to constituents on May 8 explaining that the GRT would place a tax on every dollar of sales made by a business with gross revenue over a certain amount and that as a Senator and businessman, he harbors “grave concerns” about the tax.
“Estimates put the government’s receipts from the GRT at almost $8 billion. In comparison, the current corporate income tax generated approximately $1.5 billion in 2005. For multiple, multiple reasons consumer and business groups oppose the (GRT) in Illinois,” Rutherford wrote.
“The Committee for Legislative Action was started in 1995 with the primary purpose of bringing sunlight to attempts to raise fees and taxes in Illinois and I serve as the chairman. With Governor Blagojevich calling for a GRT and a Payroll Tax, there is a dramatic increase in the number of people wanting information (about) what action steps they can take in opposition.”
Rutherford indicated those wishing to record their opposition to the GRT or learn more about it should visit the website www.CommitteeForLegislativeAction.org
Four state legislators from Peoria County met with farmers at the Peoria County Farm Bureau (PCFB) auditorium May 11 to discuss the GRT and other issues.
Senators David Koehler and Dale Risinger, along with Representatives Aaron Schock and David Leitch, told about a dozen farmers and local media that the GRT is a “dead deal” and probably “won’t happen,” according to PCFB director Patrick Kirchhofer.
“It was a good dialogue,” said Kirchhofer. “(The lawmakers) discussed raising the (corporate) income tax versus the GRT, and there were differing opinions. The bottom line is that they all have the same goal in mind but different avenues in which to get there.”
Perhaps because of the previous day’s non-binding vote in the House that overwhelmingly rejected the tax, what was expected to be a highly attended and vigorous debate over the GRT was sparsely attended and the topics of discussion quickly switched from the proposed tax to other issues such as utility rates and health insurance coverage.
The McLean County Farm Bureau, in a post on its website, questioned the effectiveness of the non-binding resolution but said it sends a clear message to Blagojevich.
“We anticipate that the proponents of the GRT will state that HR402 is just a political stunt and means nothing because the resolution does nothing,” the post reads.
“In the end, this resolution does not stop any legislative item, but does raise the political bar for the governor and the proponents of
the GRT.” This farm news was published in the May 16, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
