More than half of Illinois voters and one-third of Chicago voters said high taxes were their No. 1 concern. Despite that, Springfield and Chicago politicians both are hiking taxes again to spend more.
Prices for DoorDash, Uber, Ticketmaster and Illinois tolls might go up now to cover $1.5 billion for Illinois transit agencies. A real estate transfer tax for homes in the Chicago suburbs is also on the table.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.
Illinois lawmakers got creative with state budget proposals to overhaul pensions and raise new revenue, many of which would have hit consumers and small businesses hardest. They also failed to intrude on how families choose to educate their children.
Springfield lawmakers are close to hiking road tolls, taxing rideshare services as well as real estate sales for everyone in Cook and the collar counties.
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.
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.
A Chicago alderman wants to cap ride-share prices during peak demand. But price controls could leave more riders stranded if extra drivers are no longer attracted by extra cash.