New state budget includes more tax increases, expiration of election-year tax relief

The recently passed and signed Fiscal Year 2024 State Budget, which takes effect July 1, contains more tax increases, along with the expiration of the one-year sales tax holiday for groceries and the non-renewal of the back-to-school sales tax holiday. These developments were due in large part to new spending pressures for undocumented immigrants’ health care and were supported by Democrats.

The impacts of the tax hikes will be felt by all Illinois families, with the expiration of the gas and grocery tax holiday alone costing residents already dealing with out-of-control inflation over $400 million. Numerous Republican proposals to offer sales tax relief on gasoline were not taken up by the Democratic supermajority this spring. The sunset of the back-to-school tax relief will hit the taxpayers for $30 million more. Clearly, the support Illinois families were given was, once again, an election-year cycle carrot dangled by the Democrats.

The increased taxes on Illinois families could not come at a worse time with downward national economic trends as well. April household spending was up and the debt households were putting on consumer credit cards jumped sharply in the latest numbers reported. All this while the Fed considers raiding interest rates again, and the cost of borrowing, for yet another rate hike expected next month.

Democratic lawmakers and Gov. JB Pritzker have boasted about passing another ‘balanced’ budget, but the budget’s impact on hard-working families is nothing to celebrate at all. With inflation, continued tax hikes, and gimmicks, Illinois residents will continue to be negatively impacted financially with no relief in sight.