Illinois governor seeks $7 billion tax increase

SPRINGFIELD, Ill. -- Gov. Rod Blagojevich proposed the biggest tax increase in Illinois history Wednesday, portraying it as both a matter of fairness to average Illinoisans and the key to meeting the state's moral obligations.

In his fifth State of the State address, Blagojevich said the $7 billion in new business taxes should be used to provide health care to the uninsured and pump more money into public schools.

The state could cover 1.4 million uninsured adults, he said, while also providing a 23 percent increase in education spending next year alone.

But critics countered that the taxes, although they apply to businesses, would translate into higher prices for consumers and a blow to the economy.

Blagojevich argued that Illinois businesses don't pay their fair share of taxes.