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SENATE RESOLUTION
WHEREAS, Governor Rod Blagojevich is proposing the largest tax increase in the history of Illinois; and
WHEREAS, Governor Rod Blagojevich wants to raise $8 billion by imposing a new Gross Receipts Tax upon all businesses within Illinois; and
WHEREAS, the Governor would impose the Gross Receipts Tax at a rate of 0.85% on goods and 1.95% on services: and
WHEREAS, Only five U.S. states currently impose a Gross Receipts Tax, each of which is lower than the Governor’s proposed rates; and
WHEREAS, Three of these five states impose the gross receipts tax as a substitute for an income tax or sales tax, rather than in addition to these two other taxes; and
WHEREAS, The Tax Foundation, an independent, nonpartisan tax research group that has been evaluating tax policy since 1937, warns that the Gross Receipts Tax is poor tax policy which leads to harmful tax pyramiding and damages the performance of state and local economies; and
WHEREAS, The proposed tax would fall most harshly upon start-ups, struggling firms, and low-profit-margin businesses; and
WHEREAS, Illinois is currently ranked by Forbes Magazine as the 44th worst state in the nation in which to conduct business and Illinois ranks 43rd out of the 50 states in job growth over the last four years, trailing all of our neighboring states; and
WHEREAS, Agriculture, Illinois' primary industry, will be devastated by the pyramiding effect as seed, fertilizers, farm chemicals, equipment and machinery, and elevator services will all be taxed, and the full burden will be borne by the farmer; and
WHEREAS, This stealth tax will be woven throughout the fabric of our economy, increasing prices for consumers on all types of goods and services including healthcare, utilities, and gasoline; and
WHEREAS, The new $8 billion tax burden imposed under the Governor’s plan represents $600 each year for every man, woman and child in Illinois; and
WHEREAS, That increased tax burden equates to $2,400 for every family of four, or an additional tax burden of almost $200 per month; and
WHEREAS, the Joint Hearing of the Senate Education and Revenue Committees
attracted more than 500 witnesses in opposition to the proposed Gross Receipts Tax, representing a wide spectrum of the business community; therefore, be it
RESOLVED, BY THE SENATE OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we oppose the Gross Receipts Tax proposed by the Governor of Illinois; and be it further
RESOLVED, That a copy of this resolution be presented to the Governor of the State of Illinois.
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