News From

State Representative Ron Stephens

For Immediate Release: April 10, 2008

Contact: Rep. Stephens

618-651-0405

Stephens Opposes Democrat Proposal to Raise Taxes by $3 Billion

Springfield…. A proposed Constitutional Amendment creating a $3 billion tax increase would offer no economic relief to those suffering from high property taxes and would drive jobs from Illinois, according to State Representative Ron Stephens (R-Highland).

“This resolution offers absolutely no property tax relief,” said Stephens. “While the Democrats are claiming this tax increase will only affect the richest among us, that’s just not true. For example, older senior couples looking to sell their larger homes and downsize will take a huge financial hit on their capital gain income.”

The House Democrats’ proposal will also drive businesses away from Illinois, creating job loss across the state. Under the proposed Constitutional Amendment, individuals filing as Subchapter S Corporations, which are small business, are not protected. This means small businesses that are organized as a Subchapter S entity will experience a doubling of their State income taxes. As a consequence, Subchapter S small businesses will pay a higher income tax than corporations.

“This bill punishes individual success, which is contrary to a progressive, robust economy,” Stephens said. “Why should small businesses have to pay a higher tax rate than corporations? All this will serve to do is to drive small business to neighboring states and hurt our economy even further.”

The proposed tax plan will generate an estimated $3 billion that the Governor, by law, will be responsible for spending. Supporters claim $1 billion of the revenues generated will be split between schools and higher education; however, there are no accountability measures to ensure the infusion of revenue is spent in the classroom.

“There is no guarantee our communities will benefit from the tax plan,” Stephens said. “Why should we give the Democrats another $3 billion to aid in their reckless spending habits, especially with no guarantee that schools, communities or road projects in my district will receive a penny?”

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Representative Stephens feels the bigger injustice is to the voice of the people by not holding a Committee of the Whole on the proposed tax increase.

“My biggest problem with this amendment is that we couldn’t give the people of Illinois a chance to debate and talk about it in a Committee of the Whole,” Stephens said. “This legislation will have a dramatic impact on Illinois families and small businesses. Last year we conducted several Committees of the Whole to fully discuss and get input on important issues like the Gross Receipts Tax and electric rates. If Democrats think this is such a good idea then why the haste to pass it so quickly and deny the public their opportunity to provide input?”

The proposed resolution number is HJRCA 42.

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