Cheryl Jackson on the Governor's budget proposals

The big news last week was Gov. Blagojevich's budget and state of the state address. He unveiled a tax fairness plan that plans to tax businesses that makes more than $1.5 million a year. This involves taxing businesses using a gross reciepts tax. This tax is expected to add $10 billion dollars in tax revenue that is intended to be used for public education and a statewide health insurance program (I've heard this also referred to as universal health insurance).

There's a lot of bellyaching about this proposal with some sound opposition and then attacking Blagojevich's motives for this proposal. If you know anything about this governor not too many people like him if only for his personality if nothing else. Still this isn't about Blagojevich.

I wanted to pull out this article from the Chicago Defender where Cheryl Jackson (who according to the Capitol Fax Blog was the governor's former press secretary), the President of the Chicago Urban League, is quoted talking about the Blagojevich plan...

Chicago Urban League President Cheryle Jackson told the Defender that she likes what Blagojevich is trying to do, but she doesn't agree with the taxation of businesses, which would include some small businesses.

"I think small businesses in the community generate between $100,000 to a $1 million annually," Jackson said. "My goal with Project Next (an Urban League economic growth program) is to grow these businesses so they can earn more than $1 million per year.

"The number one creator of jobs in the Black community is Black businesses. Black business owners are the most important factor in creating jobs in the Black community. The Chicago Urban League's main priority is to help Black businesses grow."

"What this legislation does is penalizes the very thing that is the answer to economic development and job creation in the Black community," Jackson continued. "It penalizes and discourages the very thing that is going to increase more jobs and increase more development in the Black community."

Jackson would like the governor focus on a plan such as property tax relief, which she said would bring more economic development and money for education to African American communities.

So these days under new leadership the Chicago Urban League is looking at helping build businesses in the black community. They're moving away from the idea of providing training from what I heard. Still to look an entrepreurship in the black community is a good start and it's great to see Ms. Jackson express misgivings about this tax. Still the spokeswoman for Senate President Emil Jones Cindy Davidsmeyer and Rev. Freddie C. Batchelov, president of Straightway Development Co ...

Davidsmeyer said it's too early for small businesses and minority companies to get nervous about the Tax Fairness Plan.

"The language of the legislation has not even been proposed yet," Davidsmeyer said. "So right now I know there are business groups who are trying to pique business owners concerns. We think this is a fair way to go."

Batchelov said the proposed structure of Blagojevich's plan would not harm small businesses.

"It will not be a burden on small businesses," Batchelov said. "But what it will do is get the larger corporations who make from $1.5 million, and up, profit from their merchandise pay a fair share."

I suppose we're going to have to see one way or another.