Governor J.B. Pritzker approved Illinois $53.1 billion budget with increased spending and $1.2 billion in new industry-targeted taxes.
Governor Pritzker Approves $53.1 Billion Plan with Focus on Industry Taxes
Governor J.B. Pritzker has approved Illinois’ $53.1 billion state budget for the upcoming year, which increases spending by 1.6% from last year and continues a trend of higher budgets since 2019, according to the report of Washington Examiner.
The budget includes about $1.2 billion in new taxes primarily targeting specific industries rather than regular taxpayers. Democratic supporters argue it’s balanced and responsible emphasizing tax relief measures like raising the income tax personal exemption and phasing out the sales tax on groceries by 2026.
The budget adjusts taxes on sports betting and video gambling, aiming to reduce the fiscal deficit while promoting fairness in these industries. Governor Pritzker defended these changes against industry criticism asserting Illinois remains competitive compared to other states.
(photo: Muscatine Journal)
Debate Over $500,000 Cap on Business Losses and Increased Taxes on Online Retail
Businesses face new rules, including a $500,000 cap on deductible operating losses annually. This has sparked debate among business owners about its impact on growth.
Other changes affect online retail and hospitality sectors, increasing tax obligations on remote sales and leasing activities to boost state revenue.
Governor Pritzker’s budget reflects strategic fiscal management, balancing economic complexities with Democratic values of fairness and sustainability. As Illinois prepares to implement these changes in July 2024, their impact on economic growth and social equity remains under scrutiny.
