House Republicans Raise Alarm on New Service Tax Proposal.
Progressive Democrats have a new proposal making the rounds in Springfield that would establish a new sales tax on services across the state. This new service tax would cover almost all services consumers rely on, ranging from streaming services to dry cleaning, haircuts to vehicle repairs, and everything in between. Proponents are pushing the new tax as a bailout to fill the void for years of mismanagement in the Chicago region’s mass transportation system, which is facing nearly a billion-dollar budget shortfall in 2026.
State Rep. Chris Miller says progressive Democrats don’t know how to be fiscally responsible and raising taxes is their go-to approach to fill the gap from their failed policies and reckless spending.
“Every year we witness Illinois Democrats deny their failed policies and every year they borrow more, spend more, and tax more,” said Miller. “Illinois has great opportunities to grow and lower the cost of living, especially with Trump’s help, but Pritzker refuses to work with common sense policies and is choosing to tax working families to death.”
Over 73% of the Illinois economy is service-producing industries, and most are not currently set up to pay sales tax. Rushed implementation under this proposal will lead to many businesses choosing not to operate in Illinois.
Dean Graven, Owner and Operator of Dean’s Landscaping and Handyman Services, and a former President of the Springfield Home Builders Association and past board member of the Home Builders Association of Illinois, said the tax would have a major impact on housing costs.
“A new service tax will have a terrible impact on housing affordability in Illinois and will serve to stifle new construction rates,” said Graven. “Home builders rely on contractors and subcontractors providing services. Think of all the services that go into building a home – carpenters, electricians, plumbers, HVAC, roofers – under a new service tax, all of these additional taxes will be passed along to consumers. Let’s be clear, a tax hike on services is a tax hike on all Illinois families.”
Earlier this month, House Republican Conservative members said implementing DOGE in Illinois would cut spending and hold progressive Democrats accountable for their wasteful spending on NGOs and illegal immigrants.
“Illinois is in a state of disaster due to bad public policy and reckless spending by progressive Democrats who use taxpayer funds to reward non-government organizations who push their radical agenda,” said Miller. “Illinois citizens demand a new vision for our state, and we can deliver a strong, long-term solution to rein in Pritzker’s reckless spending with the adoption of Illinois DOGE.”
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