During National Small Business Week, Republican senators in Illinois have voiced concerns over a proposal from Governor JB Pritzker’s Democratic allies to raise taxes by $6 billion. They argue that this move would severely impact the state’s small business community, which is already facing challenges. This proposed tax increase follows a $1 billion hike earlier this year intended to support state spending.
The new taxes under consideration include a digital advertising tax and an increase in corporate income tax, both of which could significantly affect local businesses operating on narrow profit margins. State Senator Sue Rezin stated, “When state leaders choose tax hikes and policies that stifle growth, it’s working families who suffer the consequences.” She emphasized the need to stop imposing financial burdens on small businesses and families due to what she describes as excessive government spending.
Republicans also criticized Governor Pritzker for reinstating the franchise tax after previously agreeing to phase it out in 2019. They believe this decision damages trust in state leadership and creates an uncertain economic environment.
As discussions continue regarding the Fiscal Year 2026 budget, Senate Republicans are urging Democratic lawmakers to reject what they term as Governor Pritzker’s “tax-and-spend agenda” and collaborate on creating a balanced budget.
