Illinois Lawmakers Weigh $720-$900 Million Tax Hikes Before May 31 Budget Deadline
Updated
Updated · Illinois Policy · May 27
Illinois Lawmakers Weigh $720-$900 Million Tax Hikes Before May 31 Budget Deadline
3 articles · Updated · Illinois Policy · May 27
$720 million to $900 million in weaker-than-expected revenue has pushed Illinois lawmakers toward tax increases as they race to pass a budget by May 31 with only a simple majority.
$56 billion in proposed spending is advancing without matching funding, increasing pressure to use higher taxes and one-time measures rather than spending cuts to balance the plan.
$269 million from capping corporate loss deductions, $200 million in social media fees and $120 million in casino tax increases are among the main revenue options tied to Gov. J.B. Pritzker's budget.
$139 million in fund sweeps would also shift money from infrastructure and reduce local governments' share of income-tax revenue, a move that could intensify pressure on local property taxes.
At least six more tax proposals remain in play, including a 10% digital advertising tax and a higher corporate rate, underscoring how Illinois' budget fight is widening beyond the immediate gap.
As residents flee high taxes, will this new $55.9 billion budget worsen Illinois's outmigration crisis?
Lawmakers claim families are spared, but who ultimately bears the cost of over $800 million in new business taxes?
Illinois Passes $56 Billion FY2027 Budget: Revenue Gaps, Political Divides, and Sustainability Concerns
Overview
The Illinois General Assembly passed a $56 billion budget for FY2027, increasing spending from the previous year to address a projected shortfall of up to $900 million. This timely action was driven by rising operational costs and anticipated federal funding cuts. Lawmakers used a mix of new revenue sources, fund sweeps, and targeted tax changes to balance the budget. Despite financial progress under Governor Pritzker, including credit rating upgrades and GDP growth, the state faces ongoing challenges. The budget’s reliance on short-term fixes raises concerns about long-term fiscal sustainability and the impact on residents and local governments.