Businesses not Happy About Governor's Plan

While the governor stayed away from raising income taxes... Business owners warn his plan will still cost all of us plenty. Businesses are fuming tonight ... Saying the state makes half of its tax money from employers already. But the governor is calling for a 1.8 % rate on all goods and services. Which they say...Could push business out of the state. From truck companies to home builders... A six-billion dollar tax proposal is spreading like wild fire among illinois businesses. "The fear that once again we will see transportation heading exodus for the borders." Said Illinois Mid-West Truckers Association Director, Tom Schaefer. And from the Illinois Homebuilders Association, the director, Mark Harrison said, "Take a look at the for sale signs out there.... this couldn't come at a worst time." It's the Gross Receipt Tax plan ... Basically you're taxed on a product from the moment it's made.. or taxed on a service from when it starts till it lands in your hand. A proposal that has business leaders fired up. "I am pro business, but I'm also pro reform." Said Governor Rod Blagojevich in his State of the State and Budget address on Wednesday. But the Illinois State Chamber of Commerce has its doubts, " I'm not sure what he means when he says he's a pro business governor." Said President Doug Whitley. The new tax effects companies making over a million dollars in gross receipts per year ... Which doesn't mean small businesses like this local furniture maker... Won't be effected. "If they institute the tax we'll have to make adjustments to cover it. And it will come in two forms. Either we raise prices some percentage. We do cuts and operating expenses or some combination there's just no way around it." Said Springfield Wiley Office Furniture Vice President, Zachary Hoffman. Although the Greater Springfield Chamber of Commerce won't take a stance yet ... They are still hopeful this plan won't affect their new three million dollar economic plan. "We went into this economic development initiative knowing full way that the business climate in Illinois was not one of the things we had to sell. So regardless of the outcome it will not deter our economic development efforts it might just make our jobs tougher." Said Greater Springfield Chamber of Commerce President and CEO, Gary Plummer. The state chamber says even if the governor's plan doesn't pass ... The governor is still sending a message that Illinois isn't a friendly business state. And local businesses say it'll create loopholes causing a mess for the state to try to iron out. This six-billion dollar could help fund schools and healthcare.