February 16, 2017
Governor Rauner Proposes FY2018 Budget
Bill Ward, Executive Vice President, HBAI
If you are trying to keep score on where Governor Bruce Rauner is on taxation, here’s what I gathered from his Budget Address to the Illinois General Assembly yesterday.
- Governor’s budget includes $32.44 billion in revenue, $37.16 in spending.
- A permanent income tax hike must be paired with a permanent property tax freeze.
- He is opposed to raising sales tax on groceries & medicine.
- He favors the soft drink tax.
- He favors the implementation of service taxes. HBAI opposes this.
- He opposes the Business Opportunity Tax.
But to agree to all of this, Governor Rauner insists on Worker’s Comp reform and points to the state of Massachusetts as a model. And, he also wants term limitations for state legislators.
In comparison, here is where the State Senate is on taxation within the Grand Bargain.
- Permanent income tax increase.
- Two-year property tax freeze.
- Business Opportunity Tax.
- Implementation of Service Taxation.
- No soft drink tax.
- And, a possible slight sales tax increase on groceries & medicine as a trade-off for a lower income tax increase than originally proposed.
And if you’re wondering, there are no tax proposals forthcoming from either House Leader at this time. However, the session is still young.