Taxed in Illinois

Discussion by Democrat Sen. Schoenberg of his pet tax swap "not to worry" and defense of the gross receipts tax. His remarks and other reaction, Wilmette Life:

So far, most of the debate out in the hustings is not over a tax swap, but over the gross receipts tax, which would take a bite of manufactured and distribution at every stop along the way. Schoenberg said that not charging the tax to businesses grossing under $1 million will make it easier for small business to swallow.

But Wilmette Chamber of Commerce executive director Julie Yusim says that $1 million isn't what it used to be, and a lot of small businesses can gross that much while netting comparatively little.

"It still could be very painful for a small business owner," she said. "It could be the difference between making it or not. This is not a good place to go looking for state financing."

State Rep. Beth Coulson, R-17th, condemned the gross receipts tax as "a tax on every one of us who buy products in Illinois."

As an example, she said, the seats, interior carpeting and other parts of a car could each be taxed separately if they are manufactured in Illinois. "By the time it gets to be a car, who knows how much tax there is going to be," she said. "And you know it's going to be passed along to the consumers. It's a real hidden tax."

The gross receipts tax, made in Illinois, brought to you by Sen. Schoenberg and Gov. Blagojevich.