While the national economy is showing improvement, with markets reaching record highs and gas prices dropping below $3 per gallon in many regions, Illinois families are facing a different situation. Nationwide, companies are bringing operations back to the United States at an unprecedented rate, resulting in more than $1 trillion announced for new construction and job-creating investments. On the federal level, tax relief measures targeting families and seniors on fixed incomes are also being introduced.
In contrast, Illinois has seen its state revenues grow at twice the rate of inflation. Despite this increase, lawmakers have enacted a series of new or expanded taxes over the past year. These changes have raised concerns about their impact on working families, seniors, and those struggling with higher living costs.
The new and increased taxes affecting Illinois residents include a sales tax on most rental items such as medical equipment—which increases costs for seniors and people with disabilities—and a higher tax on cell phone services that makes Illinois one of the most expensive states for wireless taxes. Additional measures include a new fee on paint sales affecting homeowners and small contractors; continued taxation of tips and overtime pay impacting service workers and single parents; an $8 billion electric rate hike alongside nearly 40 percent higher energy costs over four years; increased sales taxes in collar counties to fund Chicago’s transit system; rising tolls for commuters; higher gas taxes across the state; and escalating property taxes in many communities.
One particularly controversial measure is the transit funding package approved this year. It raises sales taxes in suburban and collar counties while redirecting revenue away from local projects to address financial issues within Chicago’s transit system. Critics argue that this places a burden on residents who may never use these services but must now contribute financially, even as their own infrastructure needs remain unmet.
According to critics, “Rather than pursuing meaningful reforms, lawmakers chose to shift the cost onto families who may never ride the CTA, forcing suburban and downstate residents to pay for a system they do not use while their own road and infrastructure needs go unmet.”
The gap between Illinois residents and those elsewhere appears to be growing. While others benefit from economic growth, lower fuel prices, and expected federal tax relief, many in Illinois face increasing costs with little additional return.
“While families elsewhere are benefiting from a strengthening economy, lower gas prices, and upcoming federal tax relief, Illinois residents are being asked to do more, pay more, and get less in return,” according to statements included in recent commentary on state fiscal policy.
Illinois State Senator Dave Syverson (R-Rockford) has served since 1993 after replacing Christine J. Johnson as representative for the state’s 35th Senate District.
