Democrats Could Struggle to Find Tax Consensus in New Budget
Governor JB Pritzker and House Speaker Chris Welch sit together on the House floor in 2023. (Screenshot: Blueroomstream)
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As Democrats begin efforts to close a projected $3.2 billion budget gap, it appears it may be difficult for the supermajority party to find consensus, especially on taxes.
Last May, a package to balance the budget with around $1 billion in taxes, mostly on business, nearly fell apart when moderate Democrats withheld their votes in a dramatic middle-of-the-night budget vote.
And if you think Democrats may be divided again in 2025, it may be a safe bet.
While many legislative Democrats we spoke to downplayed the states budget outlook, others kept a more “wait and see” approach to budget negotiations.
But a handful of Democrats, who we allowed to speak to us anonymously as to not cause them problems within their caucuses, showed clear divisions within the party.
Last week, Governor JB Pritzker all but ruled out a tax increase as part of the budget solution.
“It’s very important that we live within our means in this state, and that we not resort to tax increases as a way to balance the budget,” he said at an unrelated news conference. “And so that’s what the communication we’ve had with our agencies and looking at all the priorities that we need to take care of.”
A spokesman for House Speaker Chris Welch also toned down talk of a tax hike, but, like Pritzker, didn't rule it out completely.
“The Speaker has stated that we're not looking at new revenue; our focus is on going line-by-line through the budget to get to a budget that is both fiscally and socially responsible,” the spokesman said.
But progressive lawmakers don't want to close the door to new revenue.
“I don’t think we can conceivably take anything off the table right now,” one progressive lawmaker told The Illinoize Monday. “Democrats were elected to advance a progressive agenda, not to make draconian, Rauner and Trump cuts.”
Moderates, though, say Democrats should be making cuts first.
“If we saw anything in November, it’s that voters aren’t happy with the status quo. I think we need to get the message that more taxes are not the answer,” another lawmaker said. “I can't imagine the repercussions of we're asked to raise taxes right now.”
Democrats have indicated in recent budget cycles, specifically in the House, that they are unwilling to negotiate with Republicans on a spending plan.
It's just all the more indication of the high wire act Democrats are on this spring.
