No Support for GRT Sends Message to Blagojevich:
Reis Votes "NO" On Resolution Seeking Support for Gross Receipts Tax

May 10, 2007

Springfield….The Illinois House voted unanimously against supporting Governor Rod Blagojevich's Gross Receipts Tax just one day after he attempted to sell members on his proposal to institute a Gross Receipts Tax on business and service transactions. Representative David Reis (R - Ste. Marie) was one of the 107 members voting NO on HR 402 on Thursday. Reis says he is not surprised by the results of today's vote.

"I appreciate the Governor flying down to Springfield yesterday to make his case for the proposal before the Committee of the Whole," Reis said. "However, after today's vote it is pretty clear his sales pitch didn't change a single mind," said Reis. Earlier in the day, in a desperate attempt to save face, Governor Blagojevich actually asked members through a press release to vote against the resolution because they didn't have time to absorb the information given during the Committee of the Whole. Members from both parties scoffed at his request.

"So far, the Governor's tax plan has changed twice. In both instances, he has actually raised the rate at which he proposes to tax businesses," Reis said. "Also, during his testimony to the House, the Governor declared repeatedly that any increase in income or sales tax would be vetoed. It is my hope that today's vote sends a loud and clear message to the Governor that we must now sit down together and begin crafting a common sense budget that allows the state to live within its means"" Reis said.

Reis also said he also opposed the Gross Receipts Tax because it would fundamentally change the way Illinois collects taxes. "With the GRT, the Governor was attempting to shift away from taxing profits and begin taxing revenue, and the two really don't have anything to do with each other," Reis said.

Criticism of the Gross Receipts Tax has come from all corners of Illinois, with business owners, farmers, and seniors alike assailing the plan because the tax would ultimately be passed on to the consumer.