New ‘balanced’ budget includes more tax increases

The recently passed and signed Fiscal Year 2024 State Budget, which takes effect July 1, contains more tax increases. In addition, the one-year sales tax holiday for groceries and the non-renewal of the back-to-school sales tax holiday is set to expire. These developments were due in large part to new spending pressures for undocumented immigrants’ health care and were supported by Democrats.

The impacts of the tax increases will be felt by all Illinois families, with the expiration of the gas and grocery tax holiday alone costing residents already dealing with out-of-control inflation over $400 million. Numerous Republican proposals to offer sales tax relief on gasoline were not taken up by the Democratic supermajority this spring. The sunset of the back-to-school tax relief will hit the taxpayers for $30 million more. Clearly, the support Illinois families are in need of, will not be seen this year.

The increased taxes on Illinois families could not come at a worse time with downward national economic trends as well. April household spending was up and the debt households were putting on consumer credit cards jumped sharply in the latest numbers reported. All this while the Fed considers raising interest rates again, and the cost of borrowing, for yet another rate hike expected next month.

The democratic super majority has boasted about passing another ‘balanced’ budget, but the budget’s impact on hard-working families is nothing to celebrate at all. With inflation, continued tax hikes, and gimmicks, Illinois residents will continue to be negatively impacted financially with no relief in sight.

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