Progressive Democrats Are Hungry for More Tax Hikes

Tax and Spend Democrats

Progressive Democrats in Springfield passed a $55.2 billion state budget for Fiscal Year 2026, the largest in Illinois history, this spring. Even though the state took in its largest revenue haul ever, Democrats still raised taxes by nearly $1 billion to fund their tax-and-spend agenda. Those tax hikes added more costs for consumers to cellphones, nicotine products, short-term rentals like Airbnb, and sports betting through apps like DraftKings.

Instead of shoring up funding for long-term programs, Democrats’ tax hikes instead helped them fund more pet projects for themselves and illegal immigrants. So, it should come as no surprise that before the FY 2026 state budget was even signed, and since, Democrats have been proposing all manner of additional tax hikes to fill the gap for core services they have repeatedly failed to adequately fund.

“This budget is far from balanced, and it’s packed with tax hikes, excessive spending on NGOs and more pork projects for Democrats,” said Miller. “Progressive Democrats have negotiated spending plans behind closed doors, excluded Republican input, and continued to raise taxes on Illinoisans to quench their never-ending thirst to spend more of the taxpayers’ money.”

The most notable and controversial tax hike proposal from Democrats has been a new tax on services. Over eighty everyday services like parking, haircuts, dry cleaning, and even oil changes would be subject to the new service tax. Even very costly projects like home repairs could be taxed under the proposal that has been put forward, potentially adding hundreds or thousands of dollars in costs for residents.

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However, a potential service tax is just the tip of the iceberg. Taxes on home deliveries (including essentials like groceries and food), digital advertising and investments have all been floated. Talk of reviving another push for a progressive income tax still lingers, despite being soundly defeated by voters just a couple of years ago. A so-called “millionaires’” tax and even taxing retirement income have been mentioned by some as well.

Despite an increasing number of Illinois family farms disappearing, as many families are unable to pay the exorbitant estate taxes levied on their land and equipment when passed down to the next generation, Democrats have proposed lowering the tax threshold, which would cripple small family farms further.

Illinois Needs to Quickly Abolish The Estate Tax