Democrats in the Illinois legislature have approved a budget that includes a suspension of the state’s fuel and grocery taxes as well as granting a rebate on property taxes.
Why? It’s an election year, stupid.
Illinois Democrats are able to provide this largesse because they raised the price of several state services through the roof in 2019 and doubled the gas tax just prior to the pandemic. Then, Democrats in Washington gave state governments $350 billion in 2021to play with, leading to a flurry of rebates, tax cuts, and tax forgiveness, all across America.
According to lawmakers, the state’s 1% sales tax on groceries will be suspended for the entirety of the new fiscal year, which officials say will save taxpayers up to $400 million through July 1, 2023.
The state’s fuel tax, which was slated to increase in July due to inflation, will instead be frozen at $.39 a gallon through Jan. 1, 2023, with a taxpayer savings of $70 million.
Property tax rebates of up to $300 per household will also be included in the budget, along with an expansion of the earned income tax credit in the state, according to Gov. J.B. Pritzker.
Finally, families will receive direct checks from the state pending approval of the budget. Each individual will be eligible for a check of up to $50, with households also receiving $100 per child.
Other states are also passing tax relief measures — especially gas tax suspensions. Perhaps Illinois lawmakers will take this opportunity in suspending the grocery tax to repeal it altogether.
Just 13 states have a grocery tax at all and while the Illinois retail grocery tax is only 1 percent, the tax is obviously regressive, hitting the poor harder than the rich.
Illinois Democrats praised the new budget for its impacts on taxpayers and its commitment to remaining balanced, something the state has wrestled with for decades.
“We’ve paid our bills, saw our credit rating improve, invested in our priorities and had the ability to send money back to taxpayers,” Illinois Senate President Don Harmon said. “As the governor said, a responsible, balanced budget was vital. We’ve got that.”
Democrats never mention how they were able to balance the budget: Governor J.B. Pritzker added more than $5 billion in new taxes and fees.
Residents paid more than neighboring states when gas taxes were 19 cents per gallon, but then Pritzker doubled the state gas tax to 38 cents per gallon. The rate is now 39.2 cents thanks to automatic inflationary increases state leaders built into the tax hike so they never again need to take an unpopular vote to raise the gas tax. Before the hike, Illinois was No. 10 in the U.S. for gas taxes, but now it is No. 2.
Similarly, Illinoisans can now expect to pay the nation’s highest base registration fee and the fifth-highest overall fee for vehicle registration. The state earned these superlatives when Pritzker increased registration costs for standard vehicles from $98 to $148 and all other large vehicles by $100 in January 2020.
Smoke and mirrors. But what do you expect in an election year?
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