Leading up to the Illinois legislature’s annual budget cycle this month, we’ve heard repeatedly about the Trump Administration’s cuts from federal funding, and our state’s inability to expand social services without making cuts to the ones we have. But these narratives are either misleading or wrong, and the Illinois Revenue Alliance has organized a slate of nine policy proposals that would generate an estimated $6 Billion in new revenue to resolve the budget shortfall and fund our most critical programs!
Here are some facts: For every $1 in federal funding sent to us, the state of Illinois sends $6 back to the federal government. Compounding this disparity is the finding that Illinois is increasingly reliant on contributions from its least wealthy – IRA shows that Illinois has the second highest effective tax rate for those with the lowest 20% of family income, and households with the lowest 20% of family incomes pay more than twice the percent of their income toward state and local taxes as those with the top 1% of incomes.
The IRA’s proposals are simple updates that would close some of the most prevalent loopholes that protect the wealthiest at the expense of working families (projected Fiscal Year 2025 revenue in parentheses):
- Digital Ad Tax ($725 Million)
- Worldwide Combined Reporting in Illinois ($1.2 Billion)
- Tax on Corporate Offshore Sheltered Income ($200 Million)
- Tax on Hedge Fund Managers (like all of us) ($1.5 Billion)
- Enact a Billionaire Wealth Tax ($840 Million)
- Tax Capital Gains Fairly ($1.7 Billion)
- Raise the Corporate Income Tax in Illinois ($830 Million)
- Close Corporate Tax Loopholes ($175 Million)
- Support Balanced Taxation of Illinois Estates ($150 Million)
These new revenue sources would not only resolve the projected shortfall, they’d also allow us to fund vital programs for our schools, public transit, healthcare, affordable housing, immigrant and senior services, and more!
The Illinois Revenue Alliance is taking their fight to Springfield on May 22nd for a rally before the budget cycle’s final sprint. We encourage everyone who’s able to learn more about the IRA’s work, and support them if you’re able to be in Springfield next week!