(The Center Square) – Illinois House Republicans say Democrats are planning major tax increases.
State Rep. Ryan Spain, R-Peoria, said a new tax on services is being floated to bail out public transportation.
Spain said the sales tax expansion would affect a long list of services. The list includes car washes and rentals, repair services, mini-storage, barbershops and hair salons, landscaping, plumbing, streaming services and more.
“We want you to be on alert. It is time for taxpayers to guard your wallet in the state of Illinois. We are already taxed to the max,” Spain said.
While there is no specific legislation filed yet, Spain said things change quickly in Springfield.
“There could be last-second deals and proposals that are introduced in a shell bill that is carried forward to committee in the waning hours of session,” Spain said.
State Rep. Joe Sosnowski, R-Rockford, said the state’s spending has exploded during J.B. Pritzker’s time as governor and pointed to $3 billion in taxpayer-funded spending on nonresident services.
“Our money is going out the door,” Sosnowski said.
Jack Geiser of Clean Cut Painting and Handyman in Springfield said the proposed service would tax target blue-collar service providers and would impact working-class trades.
“Most of us aren’t huge corporations. We’re local employers trying to stay afloat. This tax punishes Main Street, not Wall Street,” Geiser said.
Dean Graven of Dean’s Landscaping and Handyman Service said a new service tax would have a terrible impact on housing.
“In Illinois we talk about affordable housing. This makes housing unaffordable. It’s just not going to work,” Graven said.
Spain encouraged Illinois residents to visit StopILServiceTax.com, a website operated by Americans for Prosperity, to oppose the proposed tax hikes.
Illinois Democrats said Thursday that previously proposed funding options remain on the table.
