| Attention all Illinois Chamber members: the
following statement is being provided to the media this
afternoon in response to the Governor’s budget address today.
We urge you to be engaged in our coordinated media efforts
with local chambers in the coming days to reinforce this
message at the local level. Thank you. |
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Statement in Response to Governor’s Budget
Address
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Governor Rod Blagojevich’s budget plan for state
taxpayers is a reckless and irresponsible affront to every
employer and worker in Illinois. If this plan is approved,
Illinois will most certainly lose jobs and businesses to other
states for lack of regard for the economic consequences of his
political ambitions for big government.
The Governor’s
gross receipts tax plan is a massive tax on Illinois goods and
services. This “Goods and Services Tax” would increase
consumer prices for everyday expenses. It would cost Illinois
jobs by making products and services purchased here more
expensive and Illinois companies less competitive in the
marketplace. A gross receipts tax comes off the top of what a
business takes in, whether a company is making a profit or
losing money. Basic economics suggest this would only be an
incentive to cut jobs, halt expansion plans and move
businesses and jobs to other states. If approved, every
Illinois business owner will reevaluate the viability of their
future relationship with this state.
The gross receipt
tax revenues would go toward the Governor’s plan to extend
taxpayer provided healthcare coverage to anyone without
benefits. 85% of Illinoisans are now covered. Members of the
Illinois Chamber of Commerce are very interested in solving
the uninsured issue: employers and their employees currently
are paying for the uncompensated care incurred by medical
providers. Moving more people into taxpayer provided
healthcare is not prudent for long-term public policy.
Government run programs stymie innovation and flexibility.
This plan does not address quality of care, rising healthcare
costs, or how expansion of subsidized healthcare may disrupt
the system for those who already have insurance.
We
object to the Governor’s constant characterization of business
as not paying its fair share. The facts dispute his
characterization: Illinois businesses pay higher than the
national average of the total tax burden. Focusing on
corporate income tax receipts to assess the tax burden borne
by business is misleading as it is only one component. Over
the last four years, corporate income taxes grew by 87%,
overall business taxes have risen 34% while non-business taxes
rose 27%. Businesses are paying their fair share. |
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