The Illinois Senate passed a series of tax hikes May 23 that will raise more than $5.4 billion in new tax revenue. Senate Bill 9 hikes income taxes, expands sales taxes, and increases franchise taxes.
The tax hikes are part of a record $37 billion budget that the Senate also passed May 23.
The Senate approved the tax hike bill by a 32-26 margin, with no Republicans voting in favor.
SB 9 does the following:
- Hikes personal and corporate income taxes by $5 billion. The personal income tax rate increases to 4.95 percent from the current 3.75 percent rate. The corporate income tax rate rises to 7 percent from 5.25 percent.
- Expands the sales tax to laundry and dry-cleaning services, as well as storage and other services to bring in $55 million.
- Raises $54 million in cable and satellite TV taxes.
- Closes corporate loopholes worth $125 million.
The total $5.4 billion tax hike means each Illinois household will eventually have to pay $1,125 in additional taxes annually.
Under the Democrats’ plan, new taxes will apply to many services previously untaxed. And because the Senate has failed to pass a property tax reform package, Illinoisans will continue to see their property taxes – the nation’s highest – go up even more.
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