Blago pushes ‘Tax Fairness’
March 21, 2007
During his State of the State Address, Gov. Rod Blagojevich announced plans for a $6 billion business tax plan. The plan could institute a gross receipts tax that would treat all businesses fairly by applying low rates with a broad base.
“The two taxes that are really on the table here are the corporate income tax and the individual income tax,” said Justin DeJong, communication director for the Governor’s Office of Management and Budget. “Individuals face an increasing burden within the state’s tax structure.”
In Illinois, large businesses pay much less for income taxes than individuals.
“Individuals in Illinois are paying $1,500 in income tax, while 12,000 of the largest corporations in the state are paying $150 on average,” DeJong said.
The governor’s proposed “Tax Fairness” plan would help remedy this problem, DeJong said.
Opposition from members of the general assembly, however, may depose the plan.
“Anyone that studies this and really looks at the ramifications is against it,” said State Rep. Bob Pritchard (R-70th district). “Anyone who doesn’t care about the effects on taxpayers will be for it.”
Pritchard believes Blagojevich may be overstepping his bounds as governor, and this plan could only cause problems for the state.
“He keeps wanting to govern as an emperor or a tyrant,” Pritchard said. “The governor says this is a free lunch, and everybody likes a free lunch. But there is no such thing as a free lunch.”
Pritchard also mentioned the problem of individuals being taxed beyond their income.
“The tax could be more than they make; that’s the problem with the gross receipts tax,” Pritchard said.
Blagojevich’s plan could have mixed reactions among Illinoisans.
“With the general public, he might get a pass on the tax proposal because it isn’t directed at the ‘little guy,'” said Matthew Streb, assistant political science professor. “At the same time, many are already concerned that Illinois is losing businesses, and the new tax proposal won’t help.”
If Blagojevich’s plan becomes legislation, it could have strong support from the powerful members of Congress.
“The one advantage Blagojevich has is that the state legislature is so overwhelmingly Democratic that, especially if he gets [Speaker of the House Mike] Madigan and [Senate President Emil] Jones to back his proposals, he still may be able to pass many of his plans,” Streb said.