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Friday, May 16, 2025

Democrats propose $2.7B sales tax expansion in Illinois

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State Representative Kevin Schmidt (IL) | Representative Kevin Schmidt (R) 114th District

State Representative Kevin Schmidt (IL) | Representative Kevin Schmidt (R) 114th District

Democratic lawmakers in Illinois have proposed a plan to raise $2.7 billion by broadening the state's sales tax to cover various services. This expansion would affect services such as streaming, rideshares, gym memberships, and car repairs.

The proposal has sparked concern among members of the Illinois General Assembly who accuse their Democratic colleagues of trying to pass the significant tax increase quietly before the legislative session ends on May 31. They argue that this revenue is necessary to address the financial issues faced by Chicago’s Regional Transit Authority.

"Illinois cannot continue taxing families and businesses or we will continue to see population loss," said a statement from lawmakers. "We must make it a priority to exercise fiscal responsibility and prioritize the needs of Illinois residents."

The potential impact on residents includes new taxes on everyday services they currently use without additional costs. The discussion around this tax proposal highlights ongoing debates about taxation and fiscal policy within the state.

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