Instead of shoring up funding for long-term programs, Democrats' tax hikes instead helped them fund more pet projects for themselves. So, it should come as no surprise that before the FY 2026 state budget was even signed, and since, Democrats have been proposing all manner of additional tax hikes to fill the gap for core services they have repeatedly failed to adequately fund.
“Our state has been in an uncertain financial position for decades, thanks to years and years of financial malfeasance at the hands of the Democratic majority, and worse, their state budget for this year has set the table for more tax hikes,” said Deputy House Minority Leader Ryan Spain.
The most notable and controversial tax hike proposal from Democrats has been a new tax on services. Over eighty everyday services like parking, haircuts, dry cleaning, and even oil changes would be subject to the new service tax. Even very costly projects like home repairs could be taxed under the proposal that has been put forward, potentially adding hundreds or thousands of dollars in costs for residents.
“We fully expect the service tax conversation to come back during veto session this fall,” said Deputy House Minority Leader Norine Hammond. “This is a clear sign that Illinois families and small businesses are going to be asked to do more while the government continues to spend more. A service tax will drive up the cost of living even more for Illinois families.”
However, a potential service tax is just the tip of the iceberg. Taxes on home deliveries (including essentials like groceries and food), digital advertising and investments have all been floated. Talk of reviving another push for a progressive income tax still lingers, despite being soundly defeated by voters just a couple of years ago. A so-called “millionaires'” tax and even taxing retirement income have been mentioned by some as well.
Despite an increasing number of Illinois family farms disappearing, as many families are unable to pay the exorbitant estate taxes levied on their land and equipment when passed down to the next generation, Democrats have proposed lowering the tax threshold, which would cripple small family farms further.
“It’s like they just don’t care, but their citizens are feeling the sting just like my constituents are. So, it’s hard to imagine, but they care more about their pie-in-the-sky political talking points than they do about the financial damage they are causing to working families, family farms and businesses across Illinois,” said State Representative Charlie Meier, a family farmer himself. “It’s no wonder people and businesses are fleeing the state.”
“Residents need to watch their wallets and voice their opposition to more tax hikes,” Deputy Leader Spain added. “Democrats need to know the people of the state of Illinois can’t take it anymore.”