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SGOP BUDGET PROPOSAL SB 4195: SALES TAX CAP ON GASOLINE (permanent)Cap the state sales tax on gas at 18 cents per gallon. This proposal will not affect the state’s budget as the state was never anticipating this windfall of money, nor will it impact infrastructure projects. This could save consumers up to 16 cents per gallon, depending on the price of gas. Illinois is one of just seven states that charge a sales tax on top of the gas tax. While both the state and federal gas taxes are a flat tax, which means the tax does not change with price of fuel, Illinois also charges a sales tax (6.25 percent) on top of the motor fuel tax, which increases as gas prices increase. This proposal would be permanent, meaning, that if Illinois were ever to see another crisis, this provision would already be in place and would ensure that consumers are never paying more than 18 cents per gallon in sales tax on gas.
*Compared to the Democrats’ plan to freeze the Motor Fuel Tax, which will only prevent consumers from paying 2-3 cents more per gallon when the scheduled increase will take effect in July. The Democrats’ plan will also sweep money from the Underground Storage Tank Fund, which has approximately 5,000 projects pending. Their plan also sets up two gas tax increases in 2023 (after the election). Essentially, the plan just delays the increase.
SB 4164: CUT SALES TAX ON FOOD AND PRESCRIPTION DRUGS (permanent)
Eliminate the 1% sales tax on food (i.e. groceries) and prescription drugs/medical devices. Estimated taxpayer savings: around $434 million per year.
*Compared to the Democrats’ plan to suspend the tax just on food temporarily.
SB 4161: SENIOR INCOME TAX EXEMPTION (permanent)
Increase the additional exemption seniors receive on their Illinois income tax from $1,000 to $2,000.
Estimated taxpayer savings: $40 million per year.*Compared to the Democrats’ plan to only provide a tax credit for a small amount of seniors.
SB 4163: PROPERTY TAX INCOME TAX CREDIT (permanent)
Increase the property tax income tax credit from 5% to 10%. Estimated taxpayer savings: $500 million per year.
*Compared to the Democrats’ plan to provide one-time rebate checks right before the election.
SB 4186: CHILDCARE TAX CREDIT (permanent)
Creates a childcare credit in an amount equal to 25% of the federal tax credit for each qualifying child.
Estimated Cost: $37.5 millionEARNED INCOME TAX CREDIT INCREASE FROM 18% TO 20% (permanent)
*Similar to Democrats’ plan.
TEACHER TAX CREDIT INCREASE FOR SUPPLIES (same as Democrats’ plan)
FULLY FUND 8% TRANSERS TO LGDF
*Compared to the Democrats’ plan, which would give a one-time $100 million transfer to LGDF
BREAST PUMP SALES TAX EXEMPTION (same as Democrats’ plan)
VARIOUS OTHER TAX EXTENSIONS FOUND IN DEMOCRATS’ PLAN
TOTAL PERMENANT TAX RELIEF: $2.2 BILLION
This plan provides for a BALANCED BUDGET with a $14 million surplus, all while providing Illinoisians with PERMANENT tax relief.
So, they want to subtract $2.2 billion from the annual revenue base (assuming they make local governments whole after permanently eliminating that food and medicine tax) and leave the state with just a $14 million cushion?
posted by Rich Miller
Thursday, Apr 7, 22 @ 3:26 pm
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Are they also making pension payments with this plan?
Comment by SWIL_Voter Thursday, Apr 7, 22 @ 3:29 pm
The state is finally getting fiscally back on track and Republicans want to offer massive tax cuts with no cuts in spending? Now I can fully appreciate JB’s “grown-ups” comment. I guess this gives them an out when they all vote red on the upcoming budget.
Wasn’t it the GOP saying the Dem’s crime and public safety bills are only an election year stunt? Project much???
Comment by Baloneymous Thursday, Apr 7, 22 @ 3:34 pm
BREAST PUMP SALES TAX EXEMPTION (same as Democrats’ plan)
Bipartisanship on display.
Comment by Dotnonymous Thursday, Apr 7, 22 @ 3:35 pm
Things are looking too rosy for the spelunkers of misery. So introduce a bribery budget that looks great to the voters while giving them a future opportunity to complain when the State goes back into the dumps. Great strategery.
P.S. It would be interesting to hear the rating agency take.
Comment by Norseman Thursday, Apr 7, 22 @ 3:44 pm
== assuming they make local governments whole after permanently eliminating that food and medicine tax ==
I’m glad you called attention to this. It’s what I first thought when I read this.
What’s going to happen to small towns, which are mostly collecting sales taxes on grocery stores and bars. Currently 100% of the collected tax on groceries is returned to the municipality.
I don’t think even fully funding LGDF is going to make up for the loss to small towns on this.
Comment by TheInvisibleMan Thursday, Apr 7, 22 @ 3:49 pm
I guess a budget applauded by outsiders and seen as good fiscal policy too by others isn’t good for the SGOP?
They gonna get 71 and 36 for this?
Gotta override that inevitable veto once this all passes.
Oh. Oh. Ok, I get it. My bad.
Comment by Oswego Willy Thursday, Apr 7, 22 @ 3:58 pm
===Eliminate the 1% sales tax on food (i.e. groceries) and prescription drugs/medical devices. Estimated taxpayer savings: around $434 million per year. ===
Shucks, they came up with something I agree with.
Comment by Candy Dogood Thursday, Apr 7, 22 @ 4:04 pm
Great idea but they forgot to legislate putting stickers on all of the gas pumps in Illinois.
Comment by Lucky Pierre Thursday, Apr 7, 22 @ 4:04 pm
Not since Dean Garner promised soda machines in the cafeteria if he were to be elected 8th grade class president have I seen this level of visionary action.
Comment by Hon. Don Gerard Thursday, Apr 7, 22 @ 4:05 pm
There’s a couple of good ideas here (SB4195 likely best of the bunch given how gas stations compete), if there’s a pay-for, but where’s the pay-for?
Comment by Blake Thursday, Apr 7, 22 @ 4:06 pm
- “ and leave the state with just a $14 million cushion?”
A JR ramped debt bomb is about to explode.
Comment by Chicago 20 Thursday, Apr 7, 22 @ 4:06 pm
Wait, did they actually include the words “(same as Democrats’ plan)” in their press release? Isn’t that a tacit admission that, yeah, the Democrats are the team to beat and they’re just irrelevant also-rans?
Comment by Benjamin Thursday, Apr 7, 22 @ 4:10 pm
“They gonna get 71 and 36 for this?”
If the GOP doesn’t release a budget the D’s will cry “show us your plan”. When they do it is criticized as being unachievable. Can’t win.
Comment by Donnie Elgin Thursday, Apr 7, 22 @ 4:11 pm
=They gonna get 71 and 36 for this?=
Of course not. Stop it. Good to see some ideas. More of this, please.
Comment by Lew Thursday, Apr 7, 22 @ 4:26 pm
=== Of course not. Stop it. Good to see some ideas. More of this, please.===
Timing and a want to be in the process is a wee bit different when you marry some really good things to the timing it’s unveiled.
With respect, and a nod to the truth you have here too.
OW
Comment by Oswego Willy Thursday, Apr 7, 22 @ 4:29 pm
Benjamin, I am guessing they meant adopted by Dems, as these were announced before the Dems announced, like over a month ago
Comment by same as Thursday, Apr 7, 22 @ 4:30 pm
Isn’t the Dem plan a temporary version of the GOP plan? They should declare victory and vote yes
Comment by Unnecessarily Brittle Thursday, Apr 7, 22 @ 4:43 pm
Increasing the property tax credit is a good idea. Wealthy aren’t eligible.
Comment by City Zen Thursday, Apr 7, 22 @ 5:23 pm
Just to be clear, they waited until the 11th hour and 55th minute, after the grown ups had negotiated the real budget, to offer anything. And when they did deign to propose something, it was an irresponsible joke. Way to go GOP! Thanks for showing us yet again what a return to GOP leadership in the Springfield would look like.
Comment by New Day Thursday, Apr 7, 22 @ 5:32 pm
Did I miss the part about paying for all this GOP largess?
Comment by PublicServant Thursday, Apr 7, 22 @ 5:45 pm
===If the GOP doesn’t release a budget the D’s will cry “show us your plan”. When they do it is criticized as being unachievable. Can’t win.===
The goal of the exercise is to be in the discussion.
Handing in homework after others apparently did the assignment … you want them to get a “non-participation” trophy?
Comment by Oswego Willy Thursday, Apr 7, 22 @ 5:51 pm
SB 4164 - How is the GOP going to replace the $ to local government?
Or does it depend upon House Rep. Dan Brady’s 2020 pre-COVID plans to eviscerate local police and fire pensions?
Comment by Anyone Remember Thursday, Apr 7, 22 @ 6:01 pm
I love reading fiction
Comment by Suburban Mom Thursday, Apr 7, 22 @ 6:12 pm
New Day, just to be clear they offered all of these bills, expect SB4186, the same week as the Governor’s budget address in February. The other bill was filed the first week of March.
Comment by Illiana Thursday, Apr 7, 22 @ 6:20 pm
What ilgop budget? I se a revenue slashing plan that will lead to a budget crisis.
Where’s the beef? Let’s see the spend side. Like pronto.
Comment by JS Mill Thursday, Apr 7, 22 @ 8:16 pm