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Illinois Policy Institute calculates recently approved state tax cut savings at $556 per household

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The average Illinois household will continue paying significantly more each year in higher state and local taxes implemented after Gov. J.B. Pritzker took office, even with proposed tax cuts from Democrats at the statehouse, an analysis finds.

The report from the Illinois Policy Institute examines the state’s budget approved Saturday, which includes temporary tax savings amounting to about $556 per family, on average.

The tax breaks would come from a property tax rebate of up to $300, a one-year suspension of the state’s grocery tax coming out to an average of about $56, and a $200 low-income family tax credit. Pritzker also plans to suspend the state’s gas tax increase tied to inflation, though IPI says that provides no tax relief. The gas tax provision only delays for six months a scheduled 2.2 cents a gallon gas tax increase that hasn’t kicked in yet.

The report shows that Illinois families have paid a total of $2,721 in higher taxes since Gov. J.B. Pritzker’s 24 tax-and-fee hikes were implemented in 2019.

That breaks down to the average Illinois household paying roughly $680 more each year from 2019 to 2022 towards higher state and local gas taxes, vehicle registration fees, parking garage taxes, and online sales tax, the report shows.

Um, that $680 per family, per year includes the parking garage tax? C’mon. Remove the $270 a year garage tax misleadingly included in that $680 per year in increased taxes and you wind up with $410 per year, per household; which means that the average family is coming out ahead with an overall $556 break this year. Also, not paying a legally scheduled tax hike for six months is indeed a tax savings. It should’ve been included.

The $680 total, by the way, also includes expanding the sales tax to online purchases, which is just common sense and helps local brick and mortar businesses even the playing field.

posted by Rich Miller
Friday, Apr 15, 22 @ 1:45 pm

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