Download this document in .pdf format
Next session dates: House & Senate: May 8-10, 2007
Speaker Madigan announces hearing on gross receipts tax
Speaking before a full house of IMA member companies and media at 2007 Business Day, Illinois House Speaker Michael J. Madigan announced his desire to hold a rare "Committee of the Whole" to debate the Governor's proposed $8 billion gross receipts tax. The unusual committee hearing scheduled for Wednesday, May 9, will allow all 118 members of the House to participate and engage in a thoughtful debate. IMA President Greg Baise has been invited to testify at the hearing and will offer comments about the devastating impact this will have on the manufacturing community.
In his remarks, Madigan noted that the IMA and business community has raised "valid points" about the negative impact of the gross receipts tax. In calling for a public hearing, Madigan stated "my view is that all of this ought to be taken in a full and open process."
In the meantime, a bipartisan group of House lawmakers have introduced House Resolution 344 that opposes the imposition of the gross receipts tax in Illinois. While the resolution has not yet received a vote, more than fifty percent of House members have signed on as co-sponsors, demonstrating strong opposition.
If you would like to listen to or watch the Gross Receipts Tax debate, log onto the General Assembly website and click on "House Audio/Video." The committee is scheduled to begin at 9:00 a.m.
Illinois Business Day a rousing success
Hundreds of business leaders converged on the State Capitol this week to lobby lawmakers and the Governor on many critical issues including the gross receipts tax, payroll tax for health care and changes to the joint and several liability law. While Governor Blagojevich refused an invitation to address the audience, attendees were able to hear remarks from House Speaker Michael Madigan (D-Chicago), Senate Republican Leader Frank Watson (R-Greenville) and a member from the House Republican Caucus.
Speaker Madigan addressed the crowd and unveiled plans for a rare House Committee of the Whole. The extremely rare event, that may occur only once per year, will give every member of the House an opportunity to engage in debate with proponents and opponents. In his lively remarks, Sen. Watson called the gross receipts tax a "Taco Bell tax" because it will make companies run for the border. In later remarks to IMA board members, Watson indicated that members of his caucus are all strongly unified in opposition to the GRT. Rep. Brent Hassert (R-Romeoville) told the audience that many House Republicans also have concerns about the tax plan.
Keynote speaker Neil Newhouse, a partner with the nationally renowned polling firm Public Opinion Strategies, announced the results of a new IMA/Jobs Coalition poll that showed that the overwhelming percentage of Illinoisans believe that the Governor's tax plan will negatively impact their family and their employer.
In addition to speakers, attendees were treated to important panel discussions on the GRT, Governor's universal health care proposal, and energy issues. Rep. Frank Mautino (D-Spring Valley) joined representatives from Unicare and Blue Cross Blue Shield of Illinois to discuss the ramifications of the health care plan including the three percent payroll tax to be imposed on employers. While the speakers acknowledged the importance of health care, they cited a preference to move in a slow and studious manner. Constellation New Energy, a preferred IMA partner, led the energy panel and provided an update on the status of Illinois' deregulated marketplace.
Thank you to all sponsors and members who participated in this year's event.
No action on GRT or health care plans in Senate
Members of the Senate adjourned for the week without taking up either the Governor's gross receipts tax (SB 1) or his universal health care plan entitled Illinois Covered (SB 5). Combined, the two plans would levee taxes on employers in the state totaling nearly $10 billion. The IMA continues to fight against this legislation that could cripple Illinois' economy.
State corporate income taxes jump
According to a University of Illinois economist, corporate income taxes skyrocketed in April, increasing by more than 43 percent compared to April of 2006. The tax analysis released this week shows that corporate income taxes totaled $399 million last month compared to only $279 million a year ago. This study contradicts the Governor who is claiming that the corporate income tax is "broken" in order to try and win support for his new $8 billion tax hike on employers. In addition, corporate income taxes have seen double-digit increases in each of the past four years.
Smoking ban advanced to the Governor's desk
After months of contentious debate, members of the Illinois House of Representatives voted 73-42 to approve a statewide smoking ban that is set to take effect on January 1, 2008, if signed into law by the Governor. Sponsored by Sen. Terry Link (D-Vernon Hills) and Rep. Karen Yarbrough (D-Maywood), SB 500 will ban smoking in all public and private workplaces, including within 15 feet of entrances. The only exceptions lie with hotels, private nursing home rooms, and retail tobacco stores. Critics of the ban contended that business owners should make such decisions individually while proponents argue that it is a public health issue. Various press accounts have indicated that Governor Blagojevich plans to sign the bill.
Plan now to attend the IMA Annual Luncheon & Meeting
It's never too early to mark your calendar and plan to attend the IMA Annual Luncheon & Meeting. This year's gala event will be held on Friday, December 7, in Chicago and will feature several prominent keynote addresses. In addition, companies will be recognized for their longevity in the IMA and "Manufacturers of the Year" will be announced. We look forward to seeing you in December!
Other Springfield Highlights available online
