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Publication Date: May 2007
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Elizabeth C. McNichol; Iris J. Lav
Research Area: Banking and finance
Keywords: Fiscal future; Economic projections; Tax code; State budgets
Type: Report
Coverage: Illinois
Abstract:
Governor Blagojevich of Illinois has proposed a new revenue source, a gross receipts tax (GRT), to provide funds for a major health care expansion, public education, property tax relief, and to help address the state’s long-standing budget problems. A GRT is a low-rate tax on the receipts of all types of businesses. The governor’s proposed GRT would exempt retail sales of food and drugs, Medicaid payments, and the receipts of non-profits and industries such as gaming and insurance already covered by other specialized taxes. A GRT in Illinois has a number of significant advantages