SPRINGFIELD - Setting up a possible make-or-break vote today on Gov. Rod Blagojevich's proposed tax increase on businesses, House lawmakers grilled government officials and experts for eight hours Wednesday.
Now, state representatives are set to vote on a nonbinding resolution asking whether they support the governor's plan to raise taxes and provide universal health care, pay down the state's pension debt and boost money for schools.
Blagojevich kicked off the rare daylong hearing before the full House by reiterating that health care access is a "moral imperative" and refusing to turn to an income tax increase to get the needed money.
"If you pass it, I won't sign it," he told lawmakers of raising the income tax. "If you pass it, I will veto it."
Lawmakers also heard from a litany of business groups, labor organizations, economists, university professors and others who explored the merits of the "gross receipts" tax.
It would tax transactions by companies that do more than $2 million in business a year in order to target large companies in the state that don't pay much in corporate income taxes.
Supporters say the tax would be fairer, but others contend that higher costs will hurt businesses.
"The farmer and consumer will be squeezed," said Illinois Farm Bureau President Philip Nelson, echoing what business groups have been saying for months.
State Rep. Chapin Rose, R-Mahomet, was among several lawmakers who questioned the governor about the perception that businesses will pass a new tax on to customers by raising their prices.
"They will clearly pay for this," Rose said.
House Speaker Michael Madigan, D-Chicago, complimented Blagojevich for putting forth a plan to deal with the state's financial problems before setting a vote for today.
"Not everyone has shown that kind of courage, that kind of initiative," he said. "And for that, he should be commended."
Madigan has said the state probably needs a tax increase, but he's yet to endorse a specific plan.
State Rep. Mike Boland, D-East Moline, says he's looking for a plan, too, but is leaning against the governor's.
"I'm really searching for an alternative," he said.
Leaders may have to search in earnest starting today if lawmakers reject Blagojevich's plan. On Tuesday, a Senate panel approved the tax plan, but the full House and Senate still have to approve, too, before it could take effect.
Republicans have been clear about their opposition, but enough House Democrats have recently joined with them to show enough symbolic opposition to kill the tax increase.
Wednesday, more Democrats suggested they wouldn't be supportive.
"As of right now, there is no way I can vote for the GRT in its present form, no way whatsoever," said state Rep. Brandon Phelps, D-Harrisburg.
State Rep. Bill Mitchell, R-Forsyth, asked the state's main employee union why they support the governor's tax if they don't agree with how the governor wants to spend the added money. The American Federation of State, County and Municipal Employees wants more guards in the state prisons.
"Is there not a problem there?" Mitchell said. "It's a big problem."
Lawmakers got the chance to ask Blagojevich and his advisers direct questions for about two hours, sometimes asking for answers in writing.
The normally bustling chamber remained attentive during Blagojevich's presentation.
But at one point, Blagojevich said $1 billion in spending would have to be cut if taxes weren't raised. He said that among teachers being laid off and job training programs being cut, high school football teams might not get new jerseys. That caused some lawmakers to groan.
Blagojevich appealed to lawmakers saying that a "do-nothing" budget would cut "the programs your constituents care about."
"I believe in football, and I believe in high school football," Blagojevich said. "I'd like to see those kids have those uniforms. A do-nothing budget means pain to your constituents."
Mike Riopell can be reached at mike.riopell@lee.net or 789-0865.
Posted in State-and-regional on Thursday, May 10, 2007 12:00 am Updated: 11:59 am.
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