KEVIN HOFFMAN
AUG 1, 2014
Republican gubernatorial candidate Bruce Rauner’s fiscal plan would eliminate the Illinois sales tax exemption for 32 professional and business services.
By expanding the sales tax base, the state could generate more than $600 million in revenue, according Rauner who cited data from the bipartisan Commission on Government Forecasting and Accountability’s 2011 service taxes report.
A recent Reboot Illinois/We Ask America poll suggests voters are warming to his plan, which freezes local property taxes, lowers business registration fees and raises the minimum wage, among other reforms. Broadening the sales tax would partially supplant $1.8 billion in lost revenue for fiscal year 2015 when the income tax rate will roll back to 3.75 percent on January 1. Gov. Pat Quinn wants to make the 5 percent temporary income tax increase permanent.
Quinn’s lieutenant governor candidate and running mate, Paul Vallas, said Rauner’s plan will leave an $8.5 billion hole in the state’s general revenue fund and zap education funding. Rauner claims in his campaign advertising that Quinn has cut $500 million in school spending.
Here are services that would be taxed, along with estimated potential revenue as of 2014. Below the graphic is a plain text chart that includes each service’s estimated untaxed revenue in 2011, and states that have eliminated the exemption.
Next article: Reboot Illinois poll shows Durbin maintaining lead in U.S. Senate race
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