The average Illinois household will continue paying significantly more each year in higher state and local taxes implemented after Gov. J.B. Pritzker took office, even with proposed tax cuts from Democrats at the statehouse, an analysis finds.
The report from the Illinois Policy Institute examines the state’s budget approved Saturday, which includes temporary tax savings amounting to about $556 per family, on average.
The tax breaks would come from a property tax rebate of up to $300, a one-year suspension of the state’s grocery tax coming out to an average of about $56, and a $200 low-income family tax credit. Pritzker also plans to suspend the state’s gas tax increase tied to inflation, though IPI says that provides no tax relief. The gas tax provision only delays for six months a scheduled 2.2 cents a gallon gas tax increase that hasn’t kicked in yet.
The report shows that Illinois families have paid a total of $2,721 in higher taxes since Gov. J.B. Pritzker’s 24 tax-and-fee hikes were implemented in 2019.
That breaks down to the average Illinois household paying roughly $680 more each year from 2019 to 2022 towards higher state and local gas taxes, vehicle registration fees, parking garage taxes, and online sales tax, the report shows.
Adam Schuster, vice president of policy for Illinois Policy, called the proposed tax cuts Democrats approved and Pritzker supports a political move done during an election season.
“Illinois has seen high taxes the past three years, and now this year he is proposing temporary tax changes,” Schuster said. “He is promoting this as tax relief but amounts to a little more than an election-year gimmick.”
More here.