State Representative Amy Elik has voiced her opposition to a new proposal in Springfield that seeks to introduce a sales tax on services throughout Illinois. The proposed service tax would encompass nearly all consumer services, including streaming, dry cleaning, haircuts, and vehicle repairs. Advocates of the tax argue it is necessary to address the significant budget shortfall faced by Chicago’s mass transportation system, which is projected to reach nearly one billion dollars by 2026.
The proposal suggests a 6.25% tax rate, which would be the highest of its kind in any state. Illinois is already known for having one of the highest overall tax burdens in the United States.
“Illinoisans are already among the highest taxed people in the United States,” Elik stated. “They simply cannot afford to pay service tax fees on top of the already massive burden they pay. Spending is out of control in Illinois, and we do not need to raise taxes to let the Democratic Supermajority continue their spending spree.”
Currently, over 73% of Illinois’ economy consists of service-producing industries that are not equipped to handle a sales tax. The swift implementation of this proposal could lead many businesses to reconsider operating within the state.
The new tax proposal includes more than eighty services such as car washes, streaming services, landscaping, home repair/handyman services, employment staffing agencies, camping, dry cleaning, carpet cleaning, fitness centers, pest control, dog grooming, retirement/investment advising, moving services, and others.
For further details on the services included in this proposal or to express opposition to this significant tax expansion, individuals can visit StopILServiceTax.com.
