PRITZKER PUSHES DESTRUCTIVE TAX INCREASES WITH NO REFORMS

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“Illinois Governor Jay Robert ‘J. B.’ Pritzker is pushing the Illinois General Assembly to take action by the end of this month, when the fiscal year and the legislative session ends, on numerous destructive tax increases,” said Jim Tobin, economist and president of Taxpayer Education Foundation (TEF). “It should be noted that Pritzker includes NO reforms in his proposals.”

“If all of Pritzker’s tax increases pass, an additional $932 million will be stolen from taxpayers. $932 million, while catastrophic for Illinois taxpayers, is an insignificant sum when compared to the huge financial problems of the state, which are in the billions of dollars.”

Some of the tax increases proposed by Pritzker and their expected revenue are:

Capping corporate net operating loss (NOL) deductions ($314 million)

Align treatment of foreign-source dividends to treatment of domestic source dividends ($107 million)

End accelerated depreciation from former President Donald Trump’s Tax Cut and Jobs Act ($214 million)

Accelerate the expiration of exemptions for biodiesel ($107 million)

Bring back the corporate franchise tax ($30 million)

Reset the tax credit for private school scholarships at 40%, reducing tax scholarships for disadvantaged students ($14 million)

Limit retailers’ reimbursement for collecting state sales taxes ($73 million)

New sales tax on biodiesel gasoline ($107 million)

“Pritzker’s taxes mostly target small businesses and include no reforms,” said Tobin. “The governor also depends on bailing out Illinois by grabbing federal funds ($7.5 billion), which will keep Illinois afloat for about 2 years. Inflation is not factored in and state revenue projections have historically been overly optimistic.”