(The Center Square) – Republicans in the Illinois statehouse are pushing back on multiple tax and fee initiatives passed this spring, saying they are “novel” and will make life more costly for everyday Illinois taxpayers.
Reps. Travis Weaver, R-Pekin, and John Cabello, R-Machesney Park, and Sen. Neil Anderson, R-Andalusia, spoke Thursday about opposing multiple new taxes and fees – some of which are being challenged legally.
They oppose taxes on cryptocurrency, fantasy sports, sports betting, social media, and digital ads. The taxes and fees were included in the state’s budget, but mostly weren’t counted on for revenue due to legal uncertainty, which Weaver took issue with.
“They are, however, projecting costs because the lawsuits have already started and the Attorney General will have to defend them in court,” Weaver said. “These taxes can cost more money than they take in. That’s a wild concept. The entire point of taxes, literally the only reason they exist, is to raise money for the public good.”
Weaver said bills have been filed to repeal the measures. Cabello filed a bill to repeal the digital asset tax, with Weaver filing bills to repeal the other four. Anderson filed companion bills for each in the Senate.
Cabello said the digital asset tax, which is a tax on cryptocurrency, has a cost to taxpayers whether they earn or lose money on their digital investments.
“You can lose money and still owe this tax. The broker collects it, you pay it, and Springfield spends it. They’ll tell you it’s only two tenths of 1%. Well, it’s always only something when it’s coming out of someone else’s pocket,” Cabello said.
Anderson and the other lawmakers tied the new measures – many taking effect Jan. 1 – to the high cost of living working Illinoisans face as state spending continues to increase each year.
“Families have to live within a budget, businesses have to live within a budget, state government should have to do the same thing. But instead of getting spending under control, this administration and the Democrat supermajority keep looking for new places to tax and new fees to collect,” Anderson said.
Democrats in Springfield argued there would be little to no impact on Illinois families before the discussed tax measures passed.
Weaver said while on paper the argument may be correct, there are secondary ways the measures can impact residents.
“One of two things is really going to happen, they’re going to stop providing that platform in the state of Illinois. That’s not good for people.They like to use those services. And the other option there is if they’re going to pass it on to the consumer somehow,” Weaver said.
The lawmakers said they hope to earn support to repeal the taxes during the fall veto session, and Weaver said he feels optimistic that the bills he called “easy wins” will earn some support across the aisle.
Veto session is scheduled for Nov. 17-19 and Dec. 1-3 this year.
