By Dave Dahl
SPRINGFIELD – It’s not even Easter yet, but an Illinois Senate Democratic proposal looks like Santa’s big bag, and practically all Illinoisans have been good.
“The beauty of the plan is that the package benefits taxpayers. The earned income tax credit is a permanent increase,” State Sen. Elgie Sims (D-Chicago) told a Capitol news conference late Friday afternoon. “They’ve invested in us, and now we are investing in them by paying it forward and making sure that they have the ability to help themselves and their families.”
The “Pay It Forward” plan purports to give an income tax rebate to 97.5 percent of the state’s taxpayers. Also — sales tax holidays for groceries, gasoline, and school supplies. Also — a tax credit for becoming a volunteer firefighter. Sims says the state’s increased revenues allow the legislature to build this big set of bills. Lawmakers hope to end their session by next Friday.
From an Illinois Senate Democratic Caucus news release:
The majority of Illinoisans – more than 97% of taxpayers – will receive a one-time tax refund by the fall of 2022. Individual filers will receive $100 and joint filers will receive $200, with an additional $50 for up to three dependents. Individuals making up to $250,000 and joint filers making up to $500,000 will receive checks in the mail.
Amendment 2 (Sims) Addressing inflation by suspending the 1% state grocery tax for six months.
Floor Amendment 3 (Sims) Suspends the state’s portion of the gas tax increase for six months to help with rising prices at the pump.
Floor Amendment 4 (Gillespie) Provides property tax relief for homeowners. Property owners making up to $250,000 individually and $500,000 jointly are eligible for the tax credit of 5% of property taxes paid, with a maximum check of $300.
Floor Amendment 5 (Hastings) Helps families with back-to-school shopping by creating a state sales tax holiday on school supplies and clothing from Aug. 5 to Aug. 14 of 2022. Qualifying clothing and footwear with a retail price of $125 or less will have no sales tax during that time. School supplies are not subject to the $125 threshold.
Floor Amendment 6 (Aquino) Helping lower-income Illinoisans by increasing the Earned Income Credit to 19%. The current EIC in Illinois is at 18% of the federal EIC. Taxpayers 18-24 years of age, 65 and older, and taxpayers who use an individual taxpayer identification number would be able to claim the EIC if they would otherwise qualify for the federal EIC, which excludes these groups.
Floor Amendment 7 (Holmes) Gives teachers a tax credit of up to $250 for supplies bought for their classrooms.
First Responders Floor Amendment 8 (Belt) Shows appreciation for volunteer firefighters and EMS professionals by giving them a tax credit of up to $500 for a year in which they served at least nine months in a volunteer capacity.
Senate Republican Leader Dan McConchie (R-Hawthorn Woods) reacts to the recent “tax relief” proposal by Senate Democrats:
“The Senate Democrats’ proposal appears to be just another election year stunt. 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.”
Dave Dahl can be reached at [email protected]
