Adding sales taxes to services is limited in the U.S., with 46 states not generally taxing services. Illinois may break from the pack and start adding sales taxes to haircuts, lawn care, car repair and a long list of other service expected to cost $2.7 billion.
Despite Illinois law setting clear budget rules, lawmakers routinely fast-track last-minute, backroom deals, keeping voters and other legislators in the dark.
Illinois state lawmakers must be super speed readers, because who would vote on something they hadn’t read? They were given an average of 67 seconds per page to read the past nine state budgets, but last year received only 26 seconds per page.
Illinois state lawmakers are considering a statewide payroll tax that would raise business costs, reduce wages and kill jobs. Workers are already taxed on their income, meaning this would tax their wages twice.
Illinois lawmakers are looking to expand sales taxes to include things such as streaming services, gym memberships, vehicle repairs, hair care and other services to bail out Chicago’s failing transit systems and put more money in government budgets.
Illinois leaders keep using tax hikes as a budget quick-fix, but the state’s fiscal troubles – and the taxpayer burden – persist. Here are the 70 tax and fee hikes state leaders have imposed during the past 15 years.
Illinois has the third-highest corporate income taxes in the nation. These are some of the most harmful taxes to economic growth, particularly in times of economic hardship.
The median Chicago residence paid $2,059 in property taxes just to support Chicago Public Schools in 2024, 62% more than they paid 15 years ago. More than half of a Chicago homeowners’ property tax bill now goes to CPS.
Many Illinois towns are rushing to extend the 1% grocery tax. See below if your town is one of them. The statewide tax ends in 2026, but local governments can choose to retain it without asking their residents for permission.
Illinois Gov. J.B. Pritzker’s budget proposal slashes general funds for economic development while relying on federal dollars to mask the cuts. This move raises doubts about the governor’s fiscal priorities.
More than half of Illinois voters said high taxes were the No. 1 concern for the state, according to an Illinois Policy Institute poll. Of those polled, nearly half said they would also move out of the state if given the chance.
The Chicago Teachers Union and its partners are pushing nine new or higher taxes that could end up costing Illinoisans $7.3 billion more starting July 1. Their scheme to fill a proposed state budget deficit is likely to backfire and shrink the tax base.
Deep-blue Illinois had President Biden to bail out the state’s and Chicago’s financial failings. Now city and state leaders have President Trump to blame for their financial failings. Eventually, taxpayers will be held responsible.
Illinois motorists should expect another motor fuel tax increase this summer when the gas tax jumps again. Illinoisans already pay the second-highest gas taxes in the country, but state leaders are worried about not having enough to spend.