Senate Democrats pass massive tax increase
State Senator Dan McConchie (R-Hawthorn Woods) issues the following statement in response to the passage of Senate Bill 9 on May 23, which passed 32-26 with only Democrat votes:
“Today, Senate Democrats disregarded the months of bipartisanship and negotiations on a balanced budget and reform package. Instead, they passed a $5.4 billion tax increase, including an over 30% increase in income taxes, which will no doubt have a detrimental impact on Illinois families across the state.
“No doubt, there is a lot of blame to go around for the fiscal woes of this state, but the one person who is not to blame is the taxpayer. But yet again, it is the taxpayers who are being punished for the wrongdoings of past legislatures.
“I’ve said this from the beginning: the budget conversations that took place in the Senate started from the wrong place. They started with digging into the pocketbooks of taxpayers instead of cutting government spending. Today, we witnessed legislators take the easy way out by raising taxes without adequate reforms or cuts in government spending. It is wrong and should be rejected if it reaches the Governor's desk.”
Click here to listen to Sen. McConchie's comments during floor debate on SB 9.
Below is a list of tax increases and new taxes under the Senate Democrat legislation:
· Individual income tax increased to 4.95% (currently 3.25%)
· Corporate income tax increased to 7% (currently 5.25%)
· Sales tax extended to certain services beginning January 1, 2018, at a rate of 6.25%, plus all applicable local sales taxes. Some of the services include:
o Providing space for storage (exempts grain)
o Laundry, dry cleaning, cloth pressing, or linen service
o Private detective, private alarm, and private security services
o Structural pest control services
o Tattooing and body piercing services
· 5% tax on streaming services such as Netflix
· 5% tax on home satellite services
· 1% tax on Cable TV