SPRINGFIELD, Ill. (WAND) — Illinois Senate Republicans are calling on Gov. JB Pritzker and Democratic lawmakers to not raise taxes during the final week of veto session.
The Pritzker administration says Illinois is facing a $267 million budget deficit due to President Donald Trump's "Big Beautiful Bill."
Pritzker and House Speaker Emanuel "Chris" Welch have suggested lawmakers could pass a plan this week to decouple from some of the new federal tax benefits for businesses. However, Senate Republican Leader John Curran (R-Downers Grove) said decoupling will prevent taxpayers from automatic savings and could make tax filing more complicated.
Some of the tax benefits include deductions for manufacturers to build new facilities, research and development cost recovery incentives and expansion of the small business deduction.
"Every time Democrats run into a cash problem, they make matters worse by reaching further into the pockets of Illinois families who can't afford it," Curran said Tuesday.
Pritzker has already directed state agencies to review their budgets and reserve up to 4% of funds to lessen the blow of Trump's budget bill.
Republicans are also concerned about any tax increases that will be included in the Chicago transit bailout plan. Democrats could potentially approve a retail delivery tax, service tax and rideshare or toll surcharges to help address the transit budget shortfall.
"We don't use the system," said Sen. Sue Rezin (R-Morris). "Why should downstate and Central Illinois pay a new fee on every package delivered to our house? Many people rely on the ability to receive their goods at their house because they don't have access to transportation, so they're having goods delivered."
The fiscal cliff for CTA, Metra and Pace is much smaller than the expected $770 million shortfall, as the Regional Transportation Authority needs roughly $200 million. Democrats could pass a transit funding and reform plan, but Welch told WAND News earlier this month that affordability will be the north star for his caucus.
"I think a $1.50 delivery charge is tone deaf to what we're hearing at the doors and in communities all across the state," Welch said. "I'm not saying that a delivery charge isn't going to be considered at some level, but certainly not at $1.50."
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