Reis: House Has Votes to Defeat GRT

May 2, 2007

Springfield…. The Illinois House of Representatives is currently considering a resolution that would establish recorded opposition to Governor Blagojevich's proposed Gross Receipts Tax (GRT) on goods and services in Illinois. According to Rep. David Reis (R - Ste. Marie), HR 344 now has 61 sponsors including 52 Republicans and 9 Democrats. The required majority to pass legislation in the House is 60 votes.

"As of today there are 61 sponsors of the resolution that says the Illinois House stands against the proposed Gross Receipts Tax. That can only mean that if the bill containing the Gross Receipts Tax language is brought before the House we have enough votes to defeat it," Reis said. The fight over the Illinois budget is expected to heat up in the coming weeks, as Gov. Blagojevich has proposed the largest tax increase and spending plan in the history of the state of Illinois.

The GRT would impose a 1.95% tax on every transaction made by Illinois businesses with $2 million or more in receipts in a given fiscal year.

"This would fundamentally change the way we tax in Illinois," said Reis. "Under this proposal the state would begin taxing revenue rather than profits and the two really don't have anything to do with each other."

The Governor calls his proposal a 'Tax Fairness Plan', but I see nothing fair about imposing taxes on small business owners that are already dealing with Illinois' negative business climate. The Governor has decided to point fingers, tax small business owners, and turn the debate over universal health care into a class and religious war rather than acknowledging the drastic negative impact his fiscal policies have had on Illinois' economy," said Reis.

While the Resolution is not expected to be called for a vote in the full House, Reis points to the significant symbolic impact of the measure over its legislative merits.

"What we are saying with this resolution is the Gross Receipts Tax is not the will of the people of Illinois nor the will of the members who serve in the House. We have shown that we have the votes to defeat the plan. The Governor needs to be aware that if he forces this proposal on the House in its current form, it is dead on arrival," said Reis.