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Governor Proposes Changes to Tax Hike

Updated: April 2, 2007
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The governor is making some changes to the biggest proposed tax increase in state history. His original proposal called a gross receipt sales tax on businesses that bring in more than a million dollars. Now hes changing that to businesses that gross more than $2 million a year. He hopes easing the tax will help sell it to lawmakers. But the new plan is getting more criticism from one Springfield restaurant owner. August Mrozowski owns August Restaurant, Auggies Front Burner, a restaurant at the Abraham Lincoln Presidential Museum and a catering business. With all those he says he rakes in a little over $2 million, so hed still have to pay the governors proposed tax hike even with the new changes. And whats worse for him, the new proposal has a higher tax rate. But he doesnt want his customers to pay the price. "Im just going to have to work harder. I mean Im already tired from working so hard. I mean the only other thing I could probably do is probably increase the cost of my meals and stuff but then already you know people complain about how high everything is already. So I dont know where it can be absorbed or how it can be absorbed," says Mrozowski. Mrozowski says every year his profit shrinks. And with this new tax proposal he feels like hes getting penalized for the sales he makes now. This week the governor is taking a bus trip around the state to promote his new gross receipt sales tax proposal. But while more businesses would be exempt from gross receipt tax, his change would raise the tax on services and goods.

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