SPRINGFIELD (May 23, 2017) – This afternoon the Illinois Senate approved a $5.4 billion tax increase. Illinois Policy CEO John Tillman released the following statement:

“In passing a $5.4 billion tax increase today, the Democrats in the Illinois Senate send a strong message to Illinois taxpayers: ‘We politicians are not the problem. Neither is our dysfunctional state government. The problem with Illinois is that taxpayers haven’t been sending enough of their paychecks to state government and the political class.’ But Illinoisans know that’s wrong. A shortage of revenue is not the problem with Illinois, and therefore, a tax increase is not the solution.

“The tax increase plan approved today by Democrats in the Illinois Senate is, retroactive to Jan. 1, 2017. This means that for the remainder of the calendar year, the effective state income tax rate for every Illinoisan will be 5.8 percent. Under the Democrats’ plan, new taxes will appear on services that previously were not taxed. Struggling homeowners will continue to see their property tax bills skyrocket, while their home values plummet.

“The two-year budget impasse has undoubtedly been long and painful, but another round of tax increases is not the solution. The Illinois Policy Institute has demonstrated how lawmakers can balance the state budget, pay down the backlog of unpaid bills and enact pension reform that complies with the state constitution – all without raising the income tax. This is so important because it is the only way our state will climb out of its fiscal abyss.

“Illinois has tried tax hikes, and they do not work. When Democrats in the General Assembly and former Gov. Pat Quinn raised taxes in 2011, Illinoisans dutifully sent more money from each hard-earned paycheck to Springfield. State government collected $31 billion in additional revenue during the tax hike years, but didn’t reform spending. And that is why we are in this mess today. As a result, thousands of people and far too many businesses left the state. The massive backlog of unpaid bills continued to grow, and the state’s unfunded pension liability climbed by more than $20 billion during the tax hike years, despite the fact that almost all the money from the 2011 tax increase went to the pension system. Raising taxes to fix Illinois didn’t work then, and it won’t work now.

“Illinois Policy is urging lawmakers in the Illinois House and Gov. Bruce Rauner to reject this tax increase. Illinoisans have paid for politicians’ ineptitude and corruption long enough. They deserve a reform budget and a state government that finally spends within its means.”

For bookings or interviews, contact Diana Rickert at media@illinoispolicy.org or (312) 607-4977.