Tax swap would raise tax burdens

Last year, businesses and consumers alike were deeply troubled by the $7 billion gross receipts tax that was unveiled by Gov. Blagojevich.

And for good reason -- this tax increase would have had a devastating effect on our economy. But today, an equally damaging tax is being discussed in Springfield and taxpayers of Illinois have reason to again be concerned.

Commonly referred to as "tax swaps," Senate Bill 2288 and House Bill 750 would be an unprecedented $7.5 billion money grab in Illinois government, coming soon after the stunning sales tax increase enacted by the Cook County Board.

There is no hiding the fact that this is a tax increase of gigantic proportions -- a 67 percent increase in the individual income tax rate, from 3 to 5 percent, and a 67 percent increase to the corporate income tax rate, from 4.8 to 8 percent.

While these "tax swap" bills may provide some temporary property tax relief, the overall tax burden on both individuals and businesses would increase.

We also have little confidence that property taxes won't creep back to their present levels because this legislation lacks adequate safeguards to protect taxpayers from future increases. This new revenue would essentially feed our state's broken pension and Medicaid systems that are badly in need of reform.

Perhaps most importantly, a tax increase of this magnitude would be counterproductive in these troubling economic times. Our lawmakers must instead embrace fiscal responsibility and focus on stimulating the economy to keep our state strong.

Jerry Roper

President and CEO

Chicagoland Chamber of Commerce