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Rutherford: Full impact of budget remains to be seen

Thursday, June 6, 2003 Posted 11:00 p.m.
Springfield - State Senator Dan Rutherford (R-Pontiac) indicated that the Fiscal Year 2004 budget has a number of positive points on the spending side, but the total impact on most consumers remains to be seen.

The General Assembly recently approved hundreds of fee and sales tax increases despite Rutherford-s objections that the plan would impact jobs and consumers throughout Illinois.

-What we did in Springfield - parts of the spending side - was good. I think there-s probably more than what we should have, nearly $1 billion in increased spending,- Rutherford said. -What I am concerned about is the considerable increase in 300 fees on business and retail that will eventually be passed along to the consumer.-

Rutherford is concerned that the plan will impact consumers as business passes along the cost and eventually eliminates jobs. The fee increases could push Illinois businesses out of state, close their doors, or cut back their workforce in order to make ends meet.

Aside from the fees, the budget also includes a state death tax on inheritance, retroactive to January 1, 2003. Rutherford also objects to this outdated tax.

-If someone works all their life to build a small nest egg to pass along to their children and then government comes along and taxes, it is inappropriate,- Rutherford said.

The federal government no longer imposes its version of the death tax, largely because of its impact on small business and family farms, both of which are prevalent in the 53rd District and throughout Illinois.