By CINDY LADAGE
Illinois Correspondent

SPRINGFIELD, Ill. — The Illinois Agricultural Legislative Day began with a breakfast meeting at the Capitol Steakhouse.

Mary Jo Mulch and her husband, Robert, members of the Illinois Drainage Ditch Assoc. came to the state capital from their farm in Raymond, Ill. to discuss the governor’s new revenue plan with legislators.

“The big issue is the GRT (Gross Receipts Tax),” said Robert, a tall man with a ready smile.

The Mulches believe the GRT tax would adversely affect farmers.
Gov. Rod Blagojevich’s plan is to tax the gross receipt for those businesses that make more than $1 million each year.

The Governor’s office reported that “small businesses – 75 percent of all businesses in Illinois – will be exempt.

The GRT will tax service industries at a low 1.8 percent, while manufacturers, construction, retail and wholesale companies will be taxed at an even lower .5 percent.”

In his March 7 Budget Address, Blagojevich said, “For decades, it’s been the middle class and working families of Illinois that have shouldered more and more of the tax burden. And while they have paid more, the wealthiest corporations in our state have paid less and less.

The impact of this imbalance weakens our economy, burdens our families and holds our state back.

“And the saddest irony of all, the very people burdened by an unfair tax system - middle class families and working families - were hurt by the under-funding of education, healthcare and pension funds.”

After breakfast, many speakers shared their thoughts and concerns for rural America. Lt. Gov. Pat Quinn broke ranks with the governor on his revenue plan.

“Agriculture is the heart and soul of our economy,” Quinn explained.

While agreeing with Blagojevich that Illinois needs more revenue, Quinn added, “I’m not for the Gross Receipts Tax. There are other ways to get the money.”

Illinois Department of Agriculture (IDOA) Director Chuck Hartke went straight to the heart of the issue at hand. “I have no illusion on what you are doing today,” Hartke told the farmers visiting the capital.

“I know you are here to oppose the GRT issue. Know that the State of Illinois is not very robust. We are all property owners, and I want you to take a good look at the governor’s proposal.”
Hartke went on to share that the state has a good future in agriculture and mentioned that, in his opinion, the best is yet to come.

He emphasized that without the revenue from the governor’s plan, Illinois may not have the infrastructure to move the commodities and products farmers and the agricultural industry produce.
The Illinois Farm Bureau President Philip Nelson said, “We are here today to talk about issues. Three weeks ago, the Governor laid out his budget address.”

Nelson referred to the Illinois deficit of $3-$5 billion dollars and added that Blagojevich was, “trying to plug those holes.” The following summarizes the IFB’s position:

•Consumers will bear the brunt along with farmers because they are the price takers.
•Farmers and agribusinesses will pay the Gross Receipts Tax even in years they don’t make money.
•Illinois already has an unfriendly business climate and this sends a clear message that Illinois doesn’t want business growth.
•IFB supports a revenue source based on a healthy business climate like the income tax.

Illinois Corn Grower President Steve Ruh said, “We are certainly sensitive to issues that the state needs to generate more money. But a lot of concern is reflected.

“Small farms with revenue of over a million dollars would cover a lot of family farms. This would be a detriment for corn producers and livestock producers as well.”