After months of good-faith negotiations with members of the Senate Republican Caucus, the Senate’s majority party stepped away from negotiations to muscle through permanent tax increases – 4.95 percent tax rate for individual taxpayers and 7 percent tax rate for corporate entities.
As a result of the stalled-out negotiations on meaningful reforms to provide residents and employers with an economic respite through significant property tax relief and workers’ compensation, the real reforms Senate Republicans have been working toward remain out of reach.
Though Senate Democrats have taken a step back from the progress made during the months of good-faith negotiations, Senate Republican lawmakers continue to advocate for property tax relief and common-sense reforms to make Illinois more business-friendly. They emphasized that passing massive tax increases without significant, accompanying reforms will only exacerbate the state’s stagnant job growth and fleeing population.
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.