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Illinois Economy

Keep An Eye On That Service Tax

The so called "right-to-work" discussion from Governor Bruce Rauner drew a lot of the attention this week, not only of media types, but also labor union types.    

It is sure to be a hot item in the negotiating mix.   But creating a tax on services whether it be a car repair, your tax preparation or hair cut is where Rauner continues to put PART of the focus of his budget efforts.   He has a big power point slide that says  ""Raising Taxes Alone Won't Work". Of course he's stressing budget cuts and fixing structural budget problems but raising taxes is in the mix.  

The business community is warming to the idea of a "broad" tax on services.    Coming up with a tax mix that will get Democratic leaders to sign off will be more difficult.  Now that they don't control the Governor's mansion, the Dems will become the anti-tax party.

Bill is a former general manager, economy reporter, Harvest correspondent and Statehouse Bureau Chief for NPR Illinois. He has won several awards including the Associated Press Best Investigative Reporter.
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