On July 1, Illinois families were hit with yet another round of tax hikes as part of a troubling, years-long pattern under Gov. JB Pritzker. These tax hikes are especially disheartening given new data from Illinois’ Commission on Government Forecasting & Accountability. According to COGFA, the fiscal year that ended on June 30 closed with the highest annual revenue receipts in our state’s history (more than $1.4 billion higher than the previous year).
It begs the question: Why did the Democrats raise taxes again?
These tax increases are not isolated. They reflect chronic budget mismanagement and a government that continues to treat taxpayers like ATMs. Instead of reining in spending or pushing for real reform, the state keeps raising taxes as the first resort rather than the last resort. There is never talk of fiscal responsibility. Every new tax hits working families, small businesses, and seniors already struggling with rising costs.
On July 1, the state’s motor fuel tax automatically rose to 48.3¢ per gallon of gasoline and 55.8¢ per gallon of diesel. These annual inflation-adjusted hikes now place Illinois among the most heavily taxed states for fuel. Every extra penny at the pump impacts commuters, truckers, farmers, and the cost of goods.
Taxes on tobacco and nicotine products also increased. The wholesale tax on tobacco products (including vapes and nicotine pouches) increased from 36% to 45%. It’s a 25% relative increase that puts nearly half the cost of these items into government coffers.
If you enjoy sports betting, you will also get hit with new taxes on every bet you place. The new per-wager tax includes a $0.25 tax for the first 20 million bets, escalating to $0.50 or more beyond that. Major operators like FanDuel and DraftKings have already said these costs will be passed on to users.
Do you have a cell and/or landline phone? Your phone and internet bill just got pricier. The telecommunications excise tax rose from 7% to 8.65%, raising monthly costs for mobile, internet and landline users. This hits seniors and low-income residents especially hard.
Taxes on short-term rentals like Airbnb and VRBO also went up on July 1. A new 6% “hotel operators’ occupation tax” now applies to these and other short-term rentals, making travel more expensive for families and tourists.
These new taxes join a long list of others enacted under Gov. Pritzker and his legislative allies since Pritzker took office in 2019. Other tax hikes approved and enacted by Pritzker and his Democrat allies include a cap on net operating loss deductions for businesses, which cripples job creators. Majority Party legislators have also hiked video gaming taxes and hotel booking fees.
Additionally, Democrats limited the sales tax discount businesses can retain by capping it at $1,000 per month. This move alone extracted about $186 million from job creators around the state.
And we cannot forget the “shell game” repeal of the state grocery tax. While statehouse Democrats sent out their press releases celebrating the “elimination” of the grocery tax, all they did was push that tax responsibility to the local level and providing local governments with the power to impose their own tax without gaining voter approval. It was a sham. It wasn’t real relief, and as communities impose their own tax, we are seeing some take even more tax revenue than they were receiving through the state’s grocery tax.
As a state senator, I routinely vote against the Democrat-inspired tax hikes. Instead of continually asking the taxpayers of Illinois to hand over more of their cash, I fight for responsible governance, fiscal discipline, and smarter budgeting. Don’t we owe that to the hardworking people we represent?
Illinois deserves better. They deserve a government that lives within its means, that prioritizes cutting waste before digging deeper into people’s pockets. We must reverse this trend, resist further tax hikes and build a sustainable financial foundation without obligating future generations to pay for today’s excess.
• Craig Wilcox is a Republican who represents the 32nd District in McHenry and Lake counties in the Illinois Senate. He lives in McHenry.