Blagojevich's Discover Card Tax

by Cal Skinner

Governor Rod Blagojevich latest tax hike idea has been rumored for several weeks—a gross receipts tax on business.

Looking at the Chicago Tribune headline Sunday, it hit me that he is just following Discover Card’s example.

He “only” wants 1%. That’s the cash back percentage we get when we use Discover Card.

I guess he figures that no one will notice the price of everything going up in Illinois any more than people noticed the price of goods and services increasing when most people started using credit cards.

I wonder if the governor will have special deals each quarter where the government can take 5% from some categories of companies. After all, Discover Card holders get special deals where we get 5% back on certain specified purchases.

Think of all the campaign money he could raise from industries not wanting to be paying 5%, instead of 1%. And, maybe some business will have the negotiating power of Sam’s Club, where Discover only pays one-fourth of 1%. 

I wonder how much such a deal would cost, if Illinois Health Facility board memberships go for $25,000.

Comments

[Robert "BOB" Mitchell]

This tax is paid every time a good or service change hands until the product or service is used by the consumer.

1. mine sand for concrete taxes paid and passed on
2. truck delivers it to plant taxes paid and passed on
3. plant mixes it into concrete with all the other materials required (which also changed hands) taxes paid and passed on
4. concrete is now delivered to your driveway taxes paid and

$100.00 worth of sand cost you and me $106.15 plus the State sales tax of $6.63. Note that I have not added any profit for the companies that handled the sand.

This is of a lot of money that will be sucked out of your pocket and mine and squandered for who knows what folly.

[Robert "BOB" Mitchell]

This tax is paid every time a good or service change hands until the product or service is used by the consumer.

1. mine sand for concrete taxes paid and passed on
2. truck delivers it to plant taxes paid and passed on
3. plant mixes it into concrete with all the other materials required (which also changed hands) taxes paid and passed on
4. concrete is now delivered to your driveway taxes paid and

$100.00 worth of sand cost you and me $106.15 plus the State sales tax of $6.63. Note that I have not added any profit for the companies that handled the sand.

This is of a lot of money that will be sucked out of your pocket and mine and squandered for who knows what folly.

[Louis G. Atsaves]

What, you don't recall Blagojevich and the Democrats pushing for this type of new taxation or "revenue enhancement" during the November elections?

Or pushing for huge spending initiatives?

Didn't they pretend to be fiscal conservatives who were getting the Illinois fiscal house in order and brag about "no tax increases" in the past four years?