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Kane County Reporter

Sunday, April 28, 2024

'Businesses are suffering': Ex-legislator McSweeney pushes for Illinois tax cuts

Mcsweeney

"As Chairman of Cut Illinois Taxes Now, I’m fighting for the tax relief that we all need," David McSweeney posted on Facebook | davidmcsweeney.com

"As Chairman of Cut Illinois Taxes Now, I’m fighting for the tax relief that we all need," David McSweeney posted on Facebook | davidmcsweeney.com

Former GOP state representative David McSweeney is looking for change when he examines the 24 tax and fee increases totaling $5.2 billion that Illinois Gov. J.B. Pritzker has overseen during his time in office.  

“Businesses are suffering and families are being forced out of Illinois because of endless tax hikes,” McSweeney posted on Facebook. “Illinois families need a tax cut. As Chairman of Cut Illinois Taxes Now, I’m fighting for the tax relief that we all need.”

A new Tax Foundation report found that Illinoisans pay the highest wireless taxes in the country; with federal, state and local rates combined, Illinois charges 34.56%, compared to the national average of 23.94%.

Ulrik Boeson, Tax Policy Senior Policy analyst, explained the higher number comes because Illinois charges a state telecommunications fee on top of both federal taxes and a 911 fee. "This is how Illinois gets to have such a high rate," he said.

Another tax some residents may not expect, according to Illinois Policy, is one charging them a six times higher tax rate depending on the type of candy they chose for trick-or-treaters. That's because in Illinois, treats prepared with flour don’t count as “candy,” they count as food, so Halloween favorites with flour like Kit Kats, Twizzlers and Twix are taxed at 1%, while treats without flour are taxed at 6.25%.

Sales taxes in 2021 will generate some $7.4 billion for the state, the second highest revenue source for the state behind income taxes, in part due to $5.24 billion in new taxes and fees since Pritzker took office, according to Illinois Policy.

Even before this year’s new taxes being enacted, the average Illinoisan faced the highest total state and local tax burden in the nation, and as of 2019, the Tax Foundation reported the state had 10th highest tax burden in the country, with over 11% of Illinoisans’ income going to state and local taxes.

Recently, taxes and fees on gas, vehicle registration, parking, marijuana, gambling, online shopping and businesses have all soared, with gas taxes going from 19 cents to 38 cents a gallon, registration costs for standard vehicles jumping from $98 to $148 license plates for utility trailers jumping from $18 to $118, according to Illinois Policy.   

The governor has said the added revenue would be used to balance the state budget and fund a $45 billion infrastructure plan; however, the state’s latest $42.3 billion budget represents the 21st straight year lawmakers in Springfield have failed to pass a balanced budget. It's also expected to be about $482 million underfunded despite $655 million in new taxes and fees and $8.1 billion in federal aid.

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