Posted on 06/10/2004 5:47:27 AM PDT by Know your rights
SPRINGFIELD [IL] - A sales tax on junk food and certain soft drinks may be back in play as Gov. Rod Blagojevich and legislative leaders try to reach a budget compromise.
A two-hour meeting in Blagojevich's office Wednesday produced progress, leaders said, including on the contentious issue of revenue increases needed to balance the budget.
Among the ideas under consideration is extending the state sales tax to so-called junk food and to beverages such as fruit drinks and bottled iced tea that are not currently taxed. The idea could bring in as much as $100 million for the state.
"It is in play," said Senate Republican Leader Frank Watson, R-Greenville. "We're not necessarily advocating it, but it is an issue we will discuss."
"It is certainly on the table," said House Republican Leader Tom Cross, R-Oswego. "No one has said yes. The governor said he has some concerns about it. I think it's one of those (options) with a question mark."
The junk food tax is one of a number of revenue options the four leaders are supposed to discuss with their caucus members during the next few days. Depending on the reaction of rank-and-file members, those revenues could be part of a budget compromise or could be rejected.
Wednesday's negotiating session was the first since Blagojevich blasted a legal opinion issued by Attorney General Lisa Madigan as politically motivated. Madigan said last week that a plan to mortgage the Thompson Center in Chicago amounted to issuing state debt and needed a super-majority vote in the General Assembly to proceed. The decision wiped out a $210 million source of income. Blagojevich said the attorney general was simply doing the bidding of her father, House Speaker Michael Madigan, D-Chicago.
If the speaker was upset about Blagojevich's comments, it didn't carry over to the meeting, Cross said.
"I didn't detect any tension today," Cross said. "There was no tension on that issue at all."
Madigan normally refuses to talk to reporters after these sessions, but he said Wednesday that "we made some progress today."
"I will continue to say what I've been saying all along: that the problem here is that the governor has been borrowing and spending money that the state just does not have to spend," Madigan said. "We should work to stop that."
Cross said the leaders eliminated from discussion a number of the business tax increases Blagojevich has sought, including a tax on computer software purchased by business and changing depreciation rules.
"I think a good number of those were ruled out," Cross said.
Despite reports of progress, there is still a long way to go until a budget agreement is reached. Negotiators still haven't gotten into spending details, including how much of an increase should go for education or Medicaid spending. There isn't even agreement on whether to start with the current budget and add money to programs or to start with Blagojevich's budget plan and make cuts. Blagojevich's budget called for nearly $900 million in spending increases.
However, Watson said there is agreement not to spend as much as Blagojevich initially requested.
"We don't have the income coming in to go to the governor's (spending) level," Watson said.
Lawmakers missed the May 31 deadline set by the state constitution to pass a new budget. Rank-and-file members were sent home while selected budget negotiators continued to work. Because legislators missed the deadline, Republican votes are now necessary to pass a new state budget.
Although state government has enough money in the current budget to keep operating until June 30, if a new one isn't approved by then, it will run out of money.
The democrats are working on a system to tax you for the air you breathe.
A democrat beileves that it is their purpose in life to rob and steal from those that work by taxing them to death and giving some of the money [99% finds it way to the democrat's pocket]to individals who refuse to work in order to buy their votes.
Do the people who pay the taxes care?
Apparently not. They keep electing and re-electing them.
"contentious issue of revenue increases needed to balance the budget."
Here's a novel idea why don't they cut their spending habits?
Tax on tea (Boston tea party ring a bell?) and computer software. Do they already have a sales' tax?
At first I thought this was going to be one of those we don't want you to eat bad food so we are adding a tax to it for your own benefit kind of stories.
Governments are going to need a whole new division....for the food police, determining what is healthy and what should be taxed. To paraphrase Dan Quayle, when the government decides what is "junk food", everything is going to be taxed as junk food.
I have a better idea. Why doesn't the government (at all levels) just stop exploiting smokers, let people take whatever nutritional supplements they want, pay for their own prescriptions (just watch the prices go down), and get out of our faces and let us decide how our money is spent. Then they won't need all of this extra tax money.
Grrrrr....... I haven't had a good rant for awhile. <^..^>
Nope, sorry, it is just like cigarette taxes. They want the revenue for their out of control spending.
Many times it's been stated that sooner or later, they will come after something that you enjoy.
Wow, maybe I can start budgeting like this!
"Hmmmm... I don't have enough money to cover my bills. I had better start spending more!"
Mark
Connecticuts sales tax applies to everything except certian necessary foods. Candy, sodas, etc are not considered necessary foods and are taxed accordingly. Odd that this bill is called a junk food tax.
A billion here, a billion there, pretty soon you're talking real money. /sarcasm
For all the folks who want to see a national sales tax, I hope you have no complaints about this tax.
I though Blago wanted to cut spending... To bad there is not a recall option in Illinois.
Lobbyists, of course. And their data will take the form of campaign contributions.
"A two-hour meeting in Blagojevich's office Wednesday produced progress, leaders said, including on the contentious issue of revenue increases needed to balance the budget."
I'm laughing my arse off right now, I wonder what the gnatzie pro-tobacco tax increase "convenient conservatives" will say now that their ox is being gored. Goring will eventually hit everyone's consumption choices.
Maybe they should try spending as much time trying to lower taxes than trying to raise them.
I can hear it now, Tax Candy for the Children!
~snicker
Those stupid government types just don't get it. Stop spending you idiots.
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