Sen. Brady says this is very bad for Illinois, business will be doubly taxed--gross receipts and net profits, and consumers will pay more. And how will new businesses start up, many run by women and minorities, if they have to pay taxes on gross receipts even if they have no profit coming in yet? Brady said Mayor Daley gets it, as stated in this Sun Times story:
Arguing that business leaders are "not fat cats," Mayor Daley accused Gov. Blagojevich on Tuesday of playing with fire by using anti-business rhetoric to sell a proposed gross receipts tax and demanded that property tax relief be added to the mix.Daley said business leaders are committed to education funding reform and they should have been consulted upfront -- before the governor unveiled the biggest tax increase in Illinois history.
Daley also said the governor's tax is an invitation for business to leave the state. Sen. Brady said Illinois passed a tax like this several decades ago and it took years for the state economy to recover. Illinois is in the cellar among the states on job creation, when our natural advantages and infrastructure should put us at the top.
UPDATE: Trib story here, with this:
But Daley's criticisms Tuesday were noted in Springfield, where lawmakers shared his skepticism. "I think [Daley] is just expressing what probably a lot of us are thinking," said Rep. Michael Smith (D-Canton), chairman of the House Elementary and Secondary Education Committee.
Asked if lawmakers ultimately would approve the governor's proposal, he said, "If I were to bet money on it, I'd say no."At the same time, Smith said it is early in the legislative session, and lawmakers still need to see more analysis on how the taxes would affect businesses as well as consumers.
No comments:
Post a Comment