Chicago Tribune Graph on Governor Blagojevich's Budget Plan

3 Things You Need to Know

Quick Facts on Gov. Blagojevich's budget

1. Creates the largest tax increase in Illinois history by imposing a $6 billion Gross Receipts Tax on Illinois businesses.
2. Leases the Illinois Lottery system to a private company--remvoving lottery proceeds from funding education.
3. Borrows an additional $16 billion to help fund the nation's worst funded pension system.

Quick Numbers on Gov. Blagojevich's budget

1. $60 billion in spending--$4 billion more than last year.
2. $6 billion tax increase on goods and services created in Illinois--the highest of its kind in the nation.
3. $16 billion in new borrowing--increasing Illinois' indebtedness to over $36 billion.

What is a Gross Receipts Tax ?

Governor Blagojevich's gross receipts tax will range from .5% to 1.8%  and will tax nearly every service and product provided and produced in Illinois.  The tax is an expansive tax, covering nearly all service providers, wholesalers and retailers regardless of whether their company is profitable or not.

How will it affect you?

A $6 billion tax increase on Illinois businesses will affect families in many ways and likely everyday:

Costing Families and Businesses: The cost of goods and services will increase by $6 billion.  From United Airlines to Target to Home Depot, each company will pay higher taxes and likely passing that cost on to consumers.

Costing Families Everyday: The cost of everyday items, like coffee, laundry detergent, school supplies and haircuts will be affected by this tax.  The cost of everyday life will go up under Governor Blagojevich's tax increase.

Costing Illinois Jobs:  Illinois already ranks 43rd in the nation in job growth under Governor Blagojevich, we can only expect more jobs to leave Illinois under the nation's highest gross receipts tax.

A Record Setting Budget

Governor Blagojevich has set new Illinois records in following categories:

Largest Tax Increase of All-Time:  Blagojevich's $6 billion tax increase on Illinois goods and services is the largest tax increase in the history of Illinois.

Deepest Deficit in History:  With the proposal to borrow an additional $16 billion to fund state employee pensions, Governor Blagojevich brings Illinois' total debt to over $36 billion! That's a new record.

Record-High Spending:  Blagojevich's total spending in this budget is $60 billion--eclipsing last year's record high of $56 billion

What's missing?

In a budget address that will last nearly an hour and will spend over $60 billion, the Governor failed to address some of the critical issues affecting Illinois families

Higher Taxes--No Property Tax Relief:  While Blagojevich's budget increases taxes by a record-setting $6 billion, he mention no plans or efforts to help families and seniors deal with rising property taxes.

Higher Taxes--No Electric Rate Relief:  With electric bills skyrocketing and creating a real crisis in many downstate communities, the Governor offered no assistance or plans to mitigate the problem.  Click here to sign our petition urging action on this issue.

Higher Taxes--No Reforms:  Governor Blagojevich is prepared to spend billions on schools, yet offers no plans to institute reforms ensuring children receive a quality education.