Illinois is considering a huge tax increase that is placed squarely on the backs of businesses. It has been labeled "Illinois Tax Fairness" by the Governor.
From the Tax Foundation:
While the plan would phase out the corporate income tax over four years, it would also institute a new gross receipts tax on businesses which is forecast as a net tax increase of $6 billion.The new tax would be problematic not only because of the additional tax burden it would impose, but also because of the way in which it would do so. Gross receipts taxes are one of the most economically damaging ways for states to extract revenue, and economists from all ends of the political spectrum are nearly unanimous in their opposition to them.
In addition to the gross receipts tax, Governor Blagojevich proposed a new payroll tax on selected companies, bringing the total cost of the plan to $7.1 billion for Illinois taxpayers. If enacted, the tax increase would consume an average of $550 per person in Illinois and...would represent the largest single-year state tax increase this decade.
This gives new meaning to the phrase "tax fairness"!!
