Gov. Blagojevich has been quietly pushing a plan to increase taxes on employers in Illinois. Crain's has a very interesting article that talks about the planned new structure and its potential impact on Illinois government revenues and the job creation climate in Illinois.
You should read the whole thing, but I wanted to cherry-pick some quotes for your attention:
Gov. Blagojevich's proposal — the gross-receipts tax — has been tried elsewhere. Ohio and Texas recently adopted such a tax, but only as part of a broader restructuring in which other, more onerous taxes were eliminated. Michigan just junked its gross-receipts tax after gripes that it put its firms at a competitive disadvantage.
Michigan has one of the highest unemployment rates in America - some of which is clearly due to the downturn in the American automobile industry. But why would we want to mimic any of their policies that may have been a contributing factor to 7%+ unemployment?
And:
Mr. Johnson, the former revenue director, raises another concern: research indicating that about 70% of the cost of levies such as a gross-receipts tax either are passed on to consumers or forced onto workers in the form of lower wages, he says.
It's going to be sold as a tax on employers, but it's going to hurt private sector investment in Illinois, and much of the cost is going to passed onto consumers and workers. How is this a good idea?
Another:
Mr. Miller figures his tax bill would almost quadruple if Illinois supplants its corporate income tax with a 1% gross-receipts tax, reducing his after-tax profit by more than 20%. In addition, he predicts the cost of raw materials he buys in Illinois would rise as suppliers try to pass on the costs of their own gross-receipts taxes.
"You have to understand where we are already: Illinois is our highest-cost place to do business," says the president of the 117-year-old family-owned firm, which employs 223 in Illinois and 91 elsewhere. If a gross-receipts tax is enacted, "we won't expand the Illinois plant and we will look to reduce things we do in Illinois."
One more:
Gregory Baise, president of the Illinois Manufacturers' Assn., adding that the group will consider any proposal but is prepared to fight its passage in the General Assembly [said,] "I hope the governor is candid enough to just say that he needs $3 billion more for new spending."
That's right - this isn't the result of a deficit, or to pay back money swiped from pension plans or medical providers. This is for new spending on new programs.
Please read the whole thing.
I think Blowdriedovich is just trying fund a hairstyle. Lord knows it's about time.
I wonder if "Little Elvis" will have that **** eating smirk on His face when they cavity search Him on His way to the federal slam!! That's where He's going sooner or later. Crooked Bastard!!!! Hey Rod i'm over near Champaign, Have somebody show you where that is on the map!
(EDITED by IP to remove unnecessary profanity.)
I remember a slick-talking guy in college who pitched me this great and easy idea on how to make thousands of dollars. It seems logical until I realized the people at the end of the pyramid got the short end of the stick. It was a classic pyramid scheme.
I have done a bit of research on the gross receipts tax. THIS IS ALSO A CLASSICAL PYRAMID SCHEME!! The farmer gets taxed at 1%. The grain elevator gets taxed at 1%. The broker gets taxed at 1%. The trucking company gets taxed at 1%. The food distributor gets taxed at 1%. The grocery store gets taxed at 1%. Just like every pyramid scheme there is a person at the end of the line who gets screwed. At the end of this line is the consumer who could pay an extra 5-10% on top of the existing sales tax while being sold to the voter as a "1% tax".
Some side notes:
1. Our state, county and local municipalities will incur a sharp increase in their costs due to this....ultimately leading to further increases in property and sales tax.
2. Our state becomes a less competitive place to do business and investment and jobs will decrease....this only hurts the working class.
3. This is a REGRESSIVE plan. It surprises me they would even consider it based on how regressive this idea truly is. The people struggling to cover their grocery bills will be hit the hardest.
4. In a manipulative effort to disguise a tax increase, it will cost us signifcantly more than it would to simply raise our income or sales tax.
This should not be a partisan issue. This is a tax increase being sold as a 1% tax on business. I expect most on both sides of the isle will see what a horrible idea this is once they see past "only x of 100 of the biggest corporations paid income tax"....."evil and greedy business"....etc, etc. This is a pyramid scheme and the consumers and working class are the suckers at the bottom.