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East Central Reporter

Tuesday, October 21, 2025

Illinois Democrats pass record budget with new taxes; further hikes proposed

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Chris Miller, Illinois State Representative for 101st District | www.facebook.com

Chris Miller, Illinois State Representative for 101st District | www.facebook.com

Progressive Democrats in Springfield approved a $55.2 billion state budget for Fiscal Year 2026, marking the largest spending plan in Illinois history. Despite record-high revenue collections, lawmakers raised taxes by nearly $1 billion to support new expenditures. The increased taxes apply to items such as cellphones, nicotine products, short-term rentals like Airbnb, and sports betting apps including DraftKings.

Critics argue that the additional revenue is not being used to strengthen long-term programs but instead funds specific projects and services for non-citizens. Before the new budget was signed, and continuing afterward, more tax proposals have surfaced to address what some describe as underfunded core services.

“This budget is far from balanced, and it’s packed with tax hikes, excessive spending on NGOs and more pork projects for Democrats,” said Miller. “Progressive Democrats have negotiated spending plans behind closed doors, excluded Republican input, and continued to raise taxes on Illinoisans to quench their never-ending thirst to spend more of the taxpayers’ money.”

One major proposal involves introducing a service tax that would affect over eighty common services such as parking, haircuts, dry cleaning, oil changes, and home repairs. This could mean significant extra costs for residents needing these services.

Other potential tax increases discussed include levies on home deliveries—including groceries—digital advertising, investments, a revived progressive income tax (previously rejected by voters), a “millionaires’” tax, and even taxation of retirement income.

Family farms in Illinois face challenges due to estate taxes when land or equipment is passed down through generations. There are concerns that lowering the threshold for this tax would make it harder for small family farms to survive.

Miller is a Republican who was elected in 2023 to represent Illinois' 101st House District after Reggie Phillips left office.

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