Gross Receipts Tax

[mojavebassman]

For fellow linkers who live in states with a gross receipts tax, what are your opinions? Illinois is considering an additional tax on businesses making more than $2 million in sales, calling it a GRT. Lots of opposition, but the governor is saying it will close the corporate loopholes. Thoughts?

[voivod]

That tax will help increase the cost of consumer goods, which in turn increases the taxes collected on those consumer goods... Win-Win for the State...


The Facts on Illinois’ Tax Climate
Here are some basic facts on Illinois’ tax system and how it compares to other states:

Tax Freedom Day Arrived on May 2nd in Illinois

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2007, Illinois taxpayers had to work until May 2nd to pay their total tax bill, ranking the state 14th nationally. Illinois' Tax Freedom Day falls two days later than national Tax Freedom Day in 2006. The Tax Freedom Days of neighboring states are: Wisconsin, May 2nd (ranked 8th nationally); Iowa, April 21st (ranked 35th nationally); Missouri, April 20th (ranked 40th nationally); Kentucky, April 21st (ranked 36th nationally); and Indiana, April 23rd (ranked 30th nationally).
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Illinois’s State/Local Tax Burden Just Below National Average

Estimated at 10.8% of income, Illinois’s state/local tax burden ranks 22nd highest nationally, just below the national average of 11.0%. Illinois taxpayers pay $4,594 per capita for state and local taxes on per-capita state income $42,428.
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Illinois' 2007 Business Tax Climate Ranks 25th

Illinois ranks 25th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Wisconsin (38th), Iowa (43rd), Missouri (15th), Kentucky (39th) and Indiana (12th).
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Illinois' Individual Income Tax System

Illinois' personal income tax system consists of a flat 3% rate on federal adjusted gross income. That rate is the lowest among states that levy individual income taxes. Illinois' 2004 individual income tax collections were $568 per person, which ranked 35th highest nationally.
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Illinois' Corporate Income Tax System

Illinois' corporate tax structure consists of a flat rate of 7.3% on all corporate income. Among states levying corporate income taxes, Illinois' rate ranks 23rd highest. In 2004, corporate tax collections reached $101 per capita, which ranks 16th highest nationally.
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Illinois Levies Sales Tax Above National Median

Illinois levies a 6.25% general sales or use tax on consumers, which is above the national median of 5%. State and local governments combined collect $622 per capita in general sales taxes, which ranks 39th nationally. Illinois' gasoline tax stands at 19.3 cents per gallon, which ranks 34th highest nationally. Additionally, the state's general sales tax is applied to gasoline purchases. The cigarette tax stands at 98 cents per pack of twenty and ranks 19th nationally. The sales tax was adopted in 1933, the gasoline tax in 1927 and the cigarette tax in 1941.
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Illinois Property Taxes: Comparatively High

Illinois is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Illinois' localities collected $17,831,744,000 in property taxes in fiscal year 2004, which is the latest year for which the Census Bureau has published state-by-state data. At the state level, Illinois collected $57,084,000 in property taxes during FY 2004. Combined state/local property taxes were $17,888,828,000 in 2004, which brings per capita collections to $1,407 (ranking 9th highest nationally).
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Federal Tax Burdens and Expenditures: Illinois is a Donor State

Illinois taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. In 2004, Illinois citizens received approximately $0.73 in the way of federal spending per dollar of federal taxes paid. This ranks the state 46th nationally and represents a slight rise from 1992, when Illinois received $0.72 per dollar of taxes in federal spending and ranked 47th nationally. Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: Wisconsin ($0.82), Iowa ($1.11), Missouri ($1.29), Kentucky ($1.45) and Indiana ($0.97).

[vanzefflin]

For fellow linkers who live in states with a gross receipts tax, what are your opinions? Illinois is considering an additional tax on businesses making more than $2 million in sales, calling it a GRT. Lots of opposition, but the governor is saying it will close the corporate loopholes. Thoughts?

Attacking small business is soooooooo 'en vogue'. Misappropriations by these same politicians are exactly why these types of legislation have to be carried out every few years. Every level of government has made it nearly impossible to survive if you are self-employed.

Where does it stop?

Your governor is just another lying,cheating, piece of shit politician. I'm sure his family and friends would disagreee,so fuck them too. Every day we get a little closer to "Tea Fest 2".

[mojavebassman]

Thanks for all the info. Very helpful. The "tax fairness Plan" doesn't stand a chance of passing through the state legislature, but the Governor is threatening to cut $1 Billion from the budget if it's not passed, and he has threatened to veto any bill that has increases in sales or income taxes.

[Dave's Dreidel]

Also beware of what is called the "silent tax". For example, a politician can saw that he/she did not raise the tax rate, but let say the value of properties across the area are all raised significantly, it raises tax revenue with the same tax rate.

Cheating bastards!

[cokemach1]

The first go through the Illinois Congress got shot down 107-0. I wander where we will feel it? Us nobodies will be making the difference up somewhere.

Party on Springfield!

[mojavebassman]

I'm sure either income or sales taxes will be raised rather than actually cutting out the pork. Illinois is so corrupt.

[FORD]

What's needed is NOT new taxes, it's enforcement of existing tax laws. That means close the loopholes, and force the bastards to pay what they owe, and that does NOT mean passing it on to the customer.

As if CEO's who make 7 figure salaries can't afford to pay taxes for sitting on their fat asses and attending shareholder meetings??

And for christ's sake, do NOT allow the corporatists to eliminate the estate tax. We have got to eliminate the Bush/Hilton/Rockefeller/Rothschild/Bilderburgers from this planet if we are ever going to save this country.