Thread: illinois gross receipts tax

The governor announced today that he is proposing a gross receipts tax. it is billed as a fairer tax that will close loopholes for businesses. It will raise revenue for the state by between 3 and 6 billion dollars if businesses do not move out of state.

I do not know if it is a fairer tax or not (based on past performance I suspect that it is not) but it is a major tax increase. Anyway you look at it if the state is going to bring in 3 to 6 bil. more per year then someone is going to pay 3 to 6 bil. more per year. That's an increase. And you can bet that businesses are going to pass that along to someone else.

But here is my real complaint:

let's compare two businesses:

Business A has gross recipts of 100 and a profit of 50. It presently pays tax on the 50. Business B has gross receipts of 300 and a profit of 50. It presently pays tax on the 50.

Business B is taking a smaller profit. Which is good for the consumer or the employee. If business B is selling food then their food costs less or their workers are paid more.

After the new tax goes into effect, business A will pay taxes on 100 and business B will pay taxes on 300. Now the business which is kinder to the consumer or employee is paying the higher tax.


Rather than considering its own income first shouldn't a government consider the well being of the people and businesses it regulates? If it is going to engage in shaping society by creating taxes that reward or punish behavior shouldn't it be the noble behavior which is rewarded and the ignoble behavior which is punished?

Originally Posted by lakeman

The governor announced today that he is proposing a gross receipts tax. it is billed as a fairer tax that will close loopholes for businesses. It will raise revenue for the state by between 3 and 6 billion dollars if businesses do not move out of state.

I do not know if it is a fairer tax or not (based on past performance I suspect that it is not) but it is a major tax increase. Anyway you look at it if the state is going to bring in 3 to 6 bil. more per year then someone is going to pay 3 to 6 bil. more per year. That's an increase. And you can bet that businesses are going to pass that along to someone else.

But here is my real complaint:

let's compare two businesses:

Business A has gross recipts of 100 and a profit of 50. It presently pays tax on the 50. Business B has gross receipts of 300 and a profit of 50. It presently pays tax on the 50.

Business B is taking a smaller profit. Which is good for the consumer or the employee. If business B is selling food then their food costs less or their workers are paid more.

After the new tax goes into effect, business A will pay taxes on 100 and business B will pay taxes on 300. Now the business which is kinder to the consumer or employee is paying the higher tax.


Rather than considering its own income first shouldn't a government consider the well being of the people and businesses it regulates? If it is going to engage in shaping society by creating taxes that reward or punish behavior shouldn't it be the noble behavior which is rewarded and the ignoble behavior which is punished?

I don't agree with this gross receipts tax that Governor Rod Whatshisname is promoting.

Firstly, I think it's going to result in many businesses shutting down and moving out of state to a state that doesn't have this form of taxation....this of course is going to result in higher unemployment in Illinois.

Secondly, I think the smaller businesses are going to suffer.

Thirdly, I think that Government should be involved in LESS regulation of business and not MORE regulation of business.

Businesses need lower taxation, not higher taxation.

Originally Posted by ...of J.Temperance

I don't agree with this gross receipts tax that Governor Rod Whatshisname is promoting.

Firstly, I think it's going to result in many businesses shutting down and moving out of state to a state that doesn't have this form of taxation....this of course is going to result in higher unemployment in Illinois.

Secondly, I think the smaller businesses are going to suffer.

Thirdly, I think that Government should be involved in LESS regulation of business and not MORE regulation of business.

Businesses need lower taxation, not higher taxation.

Now, I'm just confused. I thought you were a liberal. But I like what you said.

Originally Posted by lakeman

Now, I'm just confused. I thought you were a liberal. But I like what you said.

I thought you were a liberal.

I've never said that I'm a liberal, I've actually pointed out that I'm NOT a liberal....I'm a social liberal yes, and an economic conservative....which makes me a Centrist....I'm a DLC Centrist, always have been.

I'm for lower taxes, including the abolition of the Capital Gains Tax, I'm also for getting Government out of the regulation of business, whether they're big businesses ie. Corporations or small businesses, the Government needs to get their noses out and stop interferring.

But I like what you said.

I'm glad