Senate Democrats Unveil $1.8 Billion Election Year Tax Package
Sen. Scott Bennett (D-Champaign) and Senate Democrats announced an election year tax package that includes refund checks to families making less than $500,000 per year. (Photo: Capitol News Illinois)
Senate Democrats Friday unveiled a $1.8 billion tax break package with a week to go in session that would send election year refund checks to most Illinoisans.
Much of the package is in addition to breaks Governor JB Pritzker laid out in his budget proposal, but many of the tax breaks are temporary.
It includes direct checks to families making under $500,000 per year, a holiday on sales taxes on schools supplies and clothing, as well as a a six-month cut in the grocery tax and a motor fuel tax.
Top budget writer Sen. Elgie Sims (D-Chicago) said the proposal is being written within the new state budget and won’t require cuts in existing programs or tap in to federal American Rescue Plan funds.
“As we were going through the budgeting process, additional revenues had been made available,” Sims said. “We've looked at those revenues. We looked at the governor's budget that was proposed in February. There was a billion dollars in tax relief that was planned there. So the tax relief that was planned, we've built on that, based on the new revenues which are available.”
Republicans were skeptical of the plan. Senate Republican Leader Dan McConchie (R-Hawthorn Woods) called the proposal a “disingenuous gimmick.”
“The Senate Democrats’ proposal appears to be just another election year stunt,” McConchie said in a statement. Under their plan, checks and relief will arrive right before the election and then will expire right after the election. This is not the real reform the people of this state want and need, and Illinoisans will see right through this disingenuous gimmick.”
But gimmick or not, it would also be direct cash in the hands of taxpayers.
The plan includes a direct check to Illinoisans. Single filers earning less than $250,000 in 2021 would receive a $100 check, while joint filers earning less than $500,000 would receive $200. People would also receive an extra $50 per dependent, up to three dependents.
Lawmakers said the hope would be that the checks would be distributed by September, although they said the date was based on immediate taxpayer relief, not on the fact that an election is upcoming in November. Checks would be automatically sent based on tax return filings.
It isn’t hard to see the political ramifications for Senate Democrats. At least 11 Democrats will have to defend seats in what could be a competitive race and another open seat is expected to be competitive.
But, it isn’t clear yet how serious the proposal is. Sources say House Democrats were not involved in drafting of the proposal at all and weren’t given a heads up on the plan until shortly before its release.
The Governor’s office didn’t respond to a request for comment, but a spokesperson was non-committal when asked by Capitol News Illinois.
“We look forward to reviewing this proposal,” Pritzker’s spokesperson said in a statement. “Our conversations with members of the General Assembly in both chambers have been productive, and we will continue to focus on delivering fiscally responsible relief for working families.”
Sources say the Governor’s office was briefed on the plan Friday afternoon.
The bill would not reduce gasoline taxes from their current level, but would prevent an increase for inflation of around 3 cents, to take effect in July. That is expected to provide small relief for consumers this summer, but could short over $1 billion from road projects over the next decade.