State Rep. Tom Demmer (R-Dixon) is pushing a proposal that would provide tax rebates to families and single-filers.
“All across the state of Illinois today families are feeling an increased burden because of risings costs due to inflation, supply chain disruption and the high taxes that Illinois families uniquely deal with even above and beyond what families across the United States are dealing with,” Demmer said at a Nov. 23 news conference.
The proposed legislation amounts to a refundable tax credit of as much as $400 for Illinois families.
“Our proposal mirrors some of the financial aid that was given by the federal government in the last couple of years in that our proposal would call for single filers (who make) up to $75,000 in income to receive $200, joint filers (who make) up to $150,000 to receive $400 and head-of-household filers (who make) up to $112,000 to receive $200,” Demmer said. “We expect the overall cost of this proposal to be about $1.4 billion.”
Demmer sees the rebates as necessary amid inflation and high taxes.
“As legislators, we have the obligation not just to look at the financial health of the state government budget, but also to think of the financial health of family budgets of the constituents that we serve, the financial challenges that they face and do whatever we can to provide some kind of relief for them when unique and unexpected changes happen, like this recent surge in inflation,” he said.
Demmer’s push coincides with the release of a new Kiplinger report calling Illinois the least tax-friendly state in the country for middle-class families. With the state’s flat income tax rate at 4.95%, Kiplinger notes Illinois’ property taxes are also the second highest in the country on average and the state’s sales taxes are also among the steepest, with the Tax Foundation placing the average combined rate at 8.83%.
Demmer said the plan could be paid for by federal COVID relief dollars.
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