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Wednesday, April 25, 2007

Expert explains new bill

By DAVID FITZGERALD - dfitzgerald@nwherald.com
CARPENTERSVILLE – The man behind the so-called tax-swap proposal to fund Illinois schools said Tuesday night that McHenry County state legislators were acting neither fairly nor morally in rejecting his measure.

Ralph Martire, the executive director of the bipartisan organization Center for Tax and Budget Accountability, outlined House Bill 750 at District 300’s Community Finance Committee meeting Tuesday, which drew officials from neighboring districts to hear the school funding expert speak.

House Bill 750 is designed to equalize the state’s education-funding system, which critics say is too reliant on local property-tax dollars.

The bill would increase the state income tax and tax consumer services, such as haircuts and lawn care, to provide a revenue stream to boost state aid to schools. It guarantees taxpayers a refund from the state for property-tax relief.

No school district would lose funding under House Bill 750, and local districts would get more money. But while local school districts would see a net gain under the legislation, McHenry County would send more money to Springfield than it would bring back. Because of that, local representatives oppose the plan.

“We need to stop being cafeteria capitalists and start reading Adam Smith [widely considered the father of modern economics] again,” Martire said Tuesday. “[These legislators] are frankly ignoring the issue. ... Of course rich people should be paying more in taxes than they get back.”

The bill is in direct competition with Gov. Rod Blagojevich’s gross receipts tax plan.

Blagojevich’s gross receipts tax proposal would impose a 1.95 percent tax on businesses with at least $2 million in annual revenue.

The plan would bring in $7 billion to improve education, to provide health insurance to all Illinois residents, and to repay money borrowed for government pensions.

District 300 Chief Financial Officer Cheryl Crates has estimated how much money District 300 could see under four possible funding scenarios: a history-based average increase, Blagojevich’s gross receipts tax plan, the Illinois State Board of Education’s funding recommendation, and House Bill 750.

The historical scenario would add $100 to the state’s foundation level; the governor’s plan, $724; the ISBE’s recommendation, $399; and House Bill 750, $355.

The following are comments from the readers. In no way do they represent the view of NWHerald.com or Shaw Newspapers.
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It's for the Children! wrote on April 25, 2007 6:54 AM:"Downstate Buddies: Tax 'em til they bleed. Tax 'em til they can't afford their homes. Tax 'em til they squeal and cry. Tax 'em until they're eating dog food for dinner. Tax 'em til they can't afford to live here anymore and they have to move. Then start all over with the Greater Fool that moves in after them. Let's look to Michigan for a wonderful example of how this works. Their taxes are so ginormously high that the net migration of people out of the state is the highest in the nation. UHaul and Ryder no longer permit one-way rentals out of the state. Michigan is the "U.S. Mexico." Everyone is dying to leave the state. C'mon, we can't let Michigan win this Top Taxing State race. We're soooo close. Don't stop now! Let's go, tax! tax! tax!! Oh yeah, of course, It's for the Kid$, so it's A-OK!"

whatiknow wrote on April 25, 2007 8:06 AM:"Who funds Center for Tax and Budget Accountability? And when they say bipartisan what exactly is the ratio of dems/republicans? We all know this is the second time around for HB750, did they change anything from last time? Why did D300 administration let this group speak and didn't invite a group with an opposing suggestion? Personally, I'v very skeptical of anything that this group of administrators put their efforts behind."

peaceofheart wrote on April 25, 2007 9:05 AM:"NO MORE TAXES!"

postal1 wrote on April 25, 2007 9:55 AM:"Expert explains new bill! X=unknown spurt is drip under pressure! How do you explain more taxes? I am broke now?"

ordinaryjoe wrote on April 25, 2007 2:03 PM:"Meanwhile, keep right on building more homes and allowing multiple illegal families to occupy homes and apartments and not pay into the system. "

pobrien wrote on April 25, 2007 2:55 PM:"To whatiknow Some answers to your questions can be found at this URL http://www.ctbaonline.org/"

Jim Peschke wrote on April 25, 2007 7:47 PM:"whatiknow, CRAFT looked into CT(BA) quite a bit when they first caught our attention in 2004. I've spoken with Ralph Martire on a few occasions. At the time, they received significant funding from the teachers unions and other public-sector unions. (I know, this is a big shock). HB-750 does mutate from time-to-time. At one time they planned to tax retirement income (over $75k if I remember correctly). Ralph loves to claim Adam Smith as his own, even though taxes are only a part of the oft-quoted Wealth Of Nations. (The laissez-faire capitalist aspects of the book get fewer mentions.) The ideology of HB-750 is much more aligned with the works of Karl Marx than Adam Smith. The real question is, is HB-750 a Trojan Horse to pass the GRT, or vice-versa?"

FullMonty wrote on April 25, 2007 7:55 PM:"What- why weren't you there to ask your questions? Open meeting and all were invited. Stan was there, John Ryan was there and asked some good questions, Monica Clark was there (when not yawning or talking loudly to her significant other), Several 158 rep's (minus all knowing Larry). Stan asked if Dr. Crates could get someone in from Blago's camp to explain the gross receipt tax proposal and the CFC is going to try. Here we go again, an open community meeting that anyone could ask a question, anyone, and the District is going to be blamed for trying to hide something."

FullMonty wrote on April 25, 2007 10:21 PM:"Since the NWH or DH haven't reported this ridiculous tidbit YET, did anyone see in the COURIER that our favorite at FTN did the following: "Jack Roeser of the Family Taxpayers' Network sent a letter to the Kane County state's attorney and the school district, claiming it would be illegal to invite a political figure to speak on a political issue on school grounds". Come on Jack, shouldn't you be adding up all those receipts and figuring out who is going to be needing to file campaign disclosures for all that cash you spent in D300 and D158 for signs, mailings, phone call, cash and in-kind donations etc. that go along with a campaign instead? "

FullMonty wrote on April 25, 2007 10:24 PM:"1 last question for the night to Jim P. with all seriousness. Jim, now that you are elsewhere, how does school funding work in New Hampshire? Property taxes, sales taxes, combination? I'm being very serious here and want to know."


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