Reis Says No to Chicago Dem Plan to Fund CTA

April 27, 2005

Springfield…. State Representative David Reis (R-Ste. Marie) says Chicago Democrats once again want the rest of the state to bail them out of their financial problems. Faced with a July deadline to find an additional $55 million for the Chicago Transportation Authority or risk service cuts, the Dems are looking to raise taxes on Illinois’ small businesses to fund the bloated CTA bureaucracy.

“Chicago Democrats, including the Governor, have proposed implementing a “canned software” tax that would raise millions in taxes at the expense of Illinois jobs and employers,” said Reis. “The CTA has notoriously poor management and business practices. It is grossly unfair to raise the taxes on businesses and employers across the state in order to fund it.”

As House Committee hearings regarding the CTA budget shortfall continue, Reis is urging Illinois House members to support businesses and employees and vote against the “canned software” tax, calling it a potentially crushing blow to employment in Illinois.

“The Chicago Democrats plan would increase taxes on businesses in order to fund the deficit of the Chicago Transit Authority,” said Reis. “At a time in our state when we are working with employers to expand and create jobs, we should not enact one more crushing blow to job creation in this state and put thousands of jobs at risk for the benefit of one region in the state. We can work to assist the CTA, but not at the risk of jobs across the state.”

The 108th District Representative added that the Democrats plan calls for the implementation of a tax on packaged software purchased by large employers. Currently in Illinois, packaged software for large scale implementation is sales tax exempt. This tax would affect thousands of employers.

“During his first two years the governor has attempted to raise hundreds of new fees and taxes on consumers and businesses,” said Reis. “Last year, they raised over 300 fees on everything from trucks to beautician licenses, some of which were recently struck down by the courts. It seems to be a never-ending theme in his to attempt to balance the budget on the backs of Illinois businesses.”