Staff Reports
Illinois Governor J.B. Pritzker, a member of the Democratic Party, recently signed off on a $53.1 billion state budget, drawing criticism from his Republican opponents due to its marked increase in spending. Despite this spending hike, Democrats maintain that the budget remains balanced and responsible, arguing that the new taxes – amounting to approximately $1.2 billion – will have minimal impact on the finances of individual taxpayers.
Governor Pritzker asserted that the newly approved budget marks his sixth consecutive balanced budget, with a 1.6% increase in spending compared to the previous year and an overall 32% rise since 2019. He emphasized that the budget has been designed to “put money back in the pockets of everyday Illinoisans.”
Washington Examiner: Illinois Democrats defend state budget amid Republican criticism https://t.co/jPdTQjQQds
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The fiscal plan addresses the revenue gap for the upcoming year with a total of $725 million in tax increases on sports betting, video gambling, and an enduring restriction on businesses’ ability to offset operating losses. Democratic state Senator Elgie Sims underscored the budget’s tax breaks, including an increase in the income tax personal exemption and the elimination of the sales tax on groceries in 2026. Low-income families with young children are also set to benefit from a new child tax credit.
The budget includes various tax changes, such as a transition in sports wagering taxes from a flat 15% to a graduated scale with five levels. Additionally, businesses will face limitations on writing off operating losses, and retailers shipping out-of-state for remote orders must collect state and local sales taxes.
The budget also covers tax changes tied to video gambling, the rerenters hotel tax, and leasing property. The tax increases and changes are expected to generate revenue to support state construction projects and local municipalities.
Despite the criticisms from Republican opponents, the governor remains firm in his support for the budget, refuting concerns from sportsbook representatives about leaving the state due to increased fees. Governor Pritzker is confident that the revised tax rates bring the state more in line with others while still maintaining an overall lower rate.
In conclusion, the approved state budget by Governor Pritzker has been met with criticism and skepticism from Republican opponents, as it includes increased taxes and spending. However, the governor and his Democratic counterparts maintain that the budget is balanced and responsible, with a focus on providing tax breaks for low-income families and investing in state construction projects and local municipalities.
