SPRINGFIELD, IL – After months of good-faith negotiations with members of the Senate Republican Caucus, the Senate’s majority party stepped away from the table and muscled through permanent tax increases – 4.95 percent tax rate for individual taxpayers and 7 percent tax rate for corporate entities, according to State Sen. Dale Fowler (R-Harrisburg).
The tax increase was approved on a nearly “party-line vote,” which Senator Fowler voted “NO” on. In addition to the large tax increase, the Senate majority also decided to keep a 15-year streak alive, by passing, yet another unbalanced spending plan.
The stalled-out negotiations mean that meaningful reforms to fix Illinois’ leading property tax rates and workers compensation system are just out of reach at the moment. Senator Fowler and his Senate Republican colleagues continue to advocate property tax relief and common-sense reforms to make Illinois more business-friendly.
Senator Fowler noted, “Illinoisans demand better than more of the same ‘tax and spend’ proposals. The Senate majority budget did nothing to address much-needed, pro-growth reforms to entice businesses to come to Illinois.”
In addition to raising income taxes, the Senate majority dug a little deeper into the pockets of Illinois’ families by leveraging even more revenues through an expanded, permanent tax on services. Laundry services, storage facilities, security systems, pest control, and several other body modification services are just a few of the classes of services that would be subjected to the traditional 6.25 percent sales tax.
Additionally, two brand new classifications would assess fees and taxes on satellite TV and radio, Internet-based streaming services, and other entertainment products.
Senator Fowler continues to hold out hope that with less than a week left in the legislative session, the majority party will return to the negotiating table to help enact some meaningful reforms.