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Extra: Rauner Backs $600 Million Sales Tax Increase, Property Tax Freeze

(Chicago) – Bruce Rauner today released a proposal that calls on freezing Illinois property taxes while raising approximately $600 million in new sales taxes.

Defying Republican dogma on the standard “no new taxes” line, the Illinois GOP gubernatorial nominee on Thursday proposed expanding the Illinois sales tax to a variety of untaxed business services.

Rauner’s tax plan, which also calls for the elimination of the 2011 income tax surcharge, would raise an additional $577 million by taxing middle-class business services, such as: computer programing, janitorial services, advertising agencies, security guards, telemarketing, overnight trailer parks, among others.

“Illinois needs to adopt sales tax fairness by broadening its tax base,” according to Rauner’s plan.

Rauner’s proposal does not, however, include taxing financial service transactions whose business owners comprise a large base of the first-time candidate’s campaign contributors.

“The only way to solve Illinois’ problems is to grow our economy and increase jobs,” Rauner said. “We can restore Illinois as an economic powerhouse by eliminating the Quinn-Madigan tax hike, freezing property taxes, and ending the regulatory burdens that are crippling our job creators.”

Rauner also proposed freezing property taxes, a measure that he estimates “could save families $500 over four years”.

“Unfortunately, under Pat Quinn, working families have suffered from high taxes and the worst economy in the Midwest,” Rauner said. “Our plan provides Illinoisans with relief from the failed policies of Pat Quinn and will bring back Illinois.”

The Quinn campaign was quick to slam Rauner’s plan.

“Only someone who uses elite accounting methods to avoid taxes himself would propose a tax hike on services that hurts small businesses, hits working families the hardest and doesn’t solve the problem at the same time,” said Quinn spokesperson Brooke Anderson. “Only someone with nine homes would propose taxing trailer parks.”

Meanwhile, Rauner also today received the formal endorsement of the Illinois Manufacturers Association, which had contributed $250,000 to the Rauner campaign on July 3.

“While you cannot blame the current administration for all the problems facing Illinois, it’s time that Illinois has a governor who is fully committed to creating a pro-growth economic strategy,” said Greg Baise, president and CEO of the Illinois Manufacturers’ Association. “We are proud to support Bruce Rauner who is the right kind of leader to turn our economic ship around and put people back to work,”

View the Rauner plan by clicking here.


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