BLOOMINGTON - No one is safe from Gov. Rod Blagojevich's proposed business-tax increase, Central Illinois business representatives said at a community forum Monday at Bloomington City Hall.

Even companies exempt from the governor's tax proposal would pay, they said, businesses would close, jobs would be cut and consumers would pay more for everything from a loaf of bread to a new car.

"I don't have a lot of options. I'll be raising my prices. ? Consumers will pay every bit of this tax," said Dale Naffzinger, owner of Growing Grounds in Bloomington.

Around 100 people attended the forum sponsored by state Sen. Bill Brady, R-Bloomington, and state Rep. Dan Brady, R-Bloomington.

The forum became the latest business-community assault on the governor's proposed $7.6 billion tax increase that would boost spending on education and health care while cutting into the state's pension debt.

The plan, commonly referred to as the "gross receipts tax" or GRT, would replace the corporate income tax with a 1.95 percent surcharge on services and 0.85 percent on sales of goods. It would apply to companies with sales exceeding $2 million.

That doesn't mean businesses with revenues below $2 million wouldn't feel the heat, said John Mincy, owner of one such business, Sign-a-Rama in Bloomington.

Mincy said he buys supplies from Illinois companies that will have to pay the tax. They'll pass that added cost on to him, he said.

"Many of the products I use are handled in Illinois twice by two companies," Mincy added, saying the same products would be taxed multiple times under Blagojevich's tax proposal.

And the $2 million exemption is very low, said Jean Payne, president of the Illinois Fertilizer and Chemical Association.

"Even our smallest ag retailer in the state is probably over $10 million in gross receipts," Payne said, adding one of her members posted an $85,000 net profit last year with gross receipts of $18 million.

On the opposite end of the spectrum, many of Illinois' largest companies are supposed to be exempt, like Country Insurance & Financial Services, for example. Those exempt businesses still would pay the corporate income tax.

The insurer's chief financial officer, Dave Magers, said Country would pay $10 million to $30 million more annually because it would be indirectly taxed through its investment income.

While no one at the forum spoke in favor of Blagojevich's proposal, he's not alone in his quest. Several state unions, including Illinois' largest employee union - the American Federation of State, County and Municipal Employees Council 31 - support the proposal.

Bill Brady, a Republican gubernatorial candidate in the 2006 primary election, said the state needs to dump Blagojevich's tax plan and hold the line on spending.