Syverson: Working families hit under largest tax hike in Illinois history

Posted: June 1, 2009

SPRINGFIELD, IL – The Illinois Senate on Saturday pushed through the largest tax hike in state history, despite opposition from State Sen. Dave Syverson (R-Rockford), all Republican lawmakers and a handful of Democrats. The $7 billion tax hike, contained in House Bill 174, would raise the income tax rate from 3 percent to 5 percent – a 67 percent increase. It also imposes 39 new taxes on a wide range of services, including dry cleaning, bowling, pet grooming, amusement parks admissions, oil changes, and movie theaters. “This tax hike will devastate working families who are already struggling to survive the economic slump,” Syverson said. “Not only will they face higher income taxes, but many of their everyday activities will also cost more. We should be doing more to help families and taxpayers, rather than slapping them with draconian tax hikes.” Syverson noted the tax hike vote came without any prior spending cuts or fiscal reforms. As a member of the Senate’s Deficit Reform Committee, Syverson looked at various ways to cut spending and reform the state budget, ranging from Medicaid reforms to government cost-savings. “Citizens are rightly outraged by this proposed tax hike,” Syverson said. “Instead of cutting spending and reforming the state budget, just as families across Illinois have been forced to do, they are hinging this budget on new taxes. That’s unfair and an affront to the hard working people of the state.”

While the Illinois House has yet to act on the measure, Syverson noted that the major budget proposals being pushed by the chamber’s leadership also rely on tax hikes rather than fiscal reforms. “Six years ago, I warned the state’s pattern of overspending would lead to a day of reckoning," Syverson said. "Well, that day is finally here and instead of stepping up and making the hard fiscal choices that need to be made, the majority wants to hand taxpayers a $7 billion bill.”

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