That’s a possibility, according to the Illinois Policy Institute.
You can bet, however, that legal services will not be taxed.
Here’s the Illinois Institute Policy Institute that deserves serious attention:
Illinois lawmakers are looking to collect $2.7 billion statewide by expanding sales taxes from mainly goods to many services such as streaming services, rideshares, gym memberships, car repair and more.
Members of the Illinois General Assembly said their Democratic peers are in stealth mode trying to pass the massive tax increase before adjournment May 31. They are claiming the money is needed to solve Chicago’s Regional Transit Authority fiscal crisis.
“We want you to be on alert. It is time for taxpayers to guard your wallet in the state of Illinois. We are already taxed to the max,” said state Rep. Ryan Spain, R-Peoria.
Illinoisans would find themselves paying sales taxes on:
- Netflix and streaming services.
- Rideshare services such as Über and Lyft.
- Gym memberships.
- Barbershops and beauty salons.
- Car washes and car repair.
- Plumbing, electrical and other repair.
- Lawn care and landscaping.
Spain said a longer list of the taxable services is found at StopILServiceTax.com.
The money generated would mean nearly $2 billion for the state, $50 million for county governments, $390 million for municipal governments and $315 million for the RTA at current baseline tax rates. Other proposals would raise the RTA sales tax rate or cut the statewide rate.
The RTA includes the Chicago Transit Authority, Metra and Pace mass transit systems serving Chicago and the suburbs.
Currently only Chicago residents pay a streaming services tax. Taxing services will hit local businesses already paying the third-highest corporate income tax rate and the second-highest property taxes.
Illinois consumers already suffer under one of the nation’s highest tax burdens, including one of the highest sales taxes. Increased costs would give residents more of a reason to move out for a more affordable state. Rather than addressing structural problems to save money in the future, lawmakers are banking on Illinoisans paying more.
Attracting more residents to the state would help expand the tax base and increasing taxes will have the opposite effect. Springfield continues to treat taxpayers like an unlimited ATM by figuring out creative ways to increase taxes while refusing to make the tough decisions necessary to fix state finances or Chicago mass transit.
Contact your state lawmakers and tell them to oppose the $2.7 billion sales tax expansion.
