West Central Reporter

House Republicans are voicing opposition to recent tax increases passed as part of Illinois’ $55.2 billion state budget for Fiscal Year 2026, which marks the largest in the state’s history. The budget relies on over $1 billion in new taxes, fund sweeps, and paused statutory transfers.

House Minority Leader Tony McCombie criticized the spending plan, stating, “Tax-and-spend Democrats are thriving in Illinois. But their success is coming at a steep cost to working families who are already stretched to the limit.”

A proposal to introduce a service tax—covering more than eighty common services such as parking, haircuts, dry cleaning, and oil changes—was considered but not included in the final budget. House Republicans warn that this idea may return during the upcoming veto session.

“We fully expect the service tax conversation to come back during veto session this fall,” said Deputy Minority Leader Norine Hammond. “This is a clear sign that Illinois families and small businesses are going to be asked to do more while government continues to spend more. A service tax will drive up the cost of living even more for Illinois families.”

Instead of reducing expenditures or providing relief for taxpayers, Democrats enacted several targeted tax hikes and other fiscal maneuvers. These include increased taxes on tobacco and nicotine products, higher fees on sports betting, changes to business tax rules aimed at raising additional revenue, and a one-time tax amnesty program expected to generate hundreds of millions of dollars.

McCombie highlighted concerns about the impact on residents: “Illinois families cannot afford and should not have to pay service taxes on top of the enormous tax burden they already pay. Instead of making tough decisions and solving the problem, they’re passing off the burden to hardworking taxpayers who are already struggling.”

Hammond also expressed concern over shifting funds from dedicated accounts like the Road Fund and delaying contributions into the Rainy Day Fund. “They’re papering over budget holes with temporary fixes,” she said. “At the end of the day, it’s not sustainable, and it’s not fair to taxpayers.”

Further tax proposals may be forthcoming as Democratic lawmakers continue seeking new sources of revenue through possible levies on home deliveries, digital advertising, capital gains, and wealth-based assessments.

“There’s always another tax on the horizon,” McCombie said. “But instead of finding new ways to take more, we should be focused on doing more with what we already have. Illinois working families deserve better.”

As legislative discussions move toward fall's veto session, House Republicans say they will oppose any renewed efforts for a service tax or additional burdens affecting households and small businesses.

“The people of this state are smart,” Leader McCombie added. “They know when they’re being asked to pay for government’s mistakes. We’re standing with working families over bloated government spending.”

Norine Hammond was elected as a Republican representative for Illinois’ 94th House District in 2023 after succeeding Randy Frese.