Across the country, the economic outlook is showing real signs of strength. Markets are at or near all-time highs, providing stability for retirees and strengthening pension funds. Gas prices have dropped below $3 per gallon in many areas, offering families some relief at the pump. 

At the same time, companies are reshoring operations to the United States at a historic pace, with more than $1 trillion announced in new construction and job-creating investments nationwide. On the federal level, tax relief is also on the horizon, with new tax breaks aimed at helping families and especially seniors on fixed incomes. 

Unfortunately, Illinois tells a very different story. 

Despite state revenues growing at twice the rate of inflation, the ruling party in Springfield spent this year focused not on relief, but on raising taxes. A long list of new or expanded taxes has either gone into effect this year or was passed during the most recent legislative session. Together, they place a disproportionate burden on working families, seniors, and those already struggling with rising costs. 

New and Increased Taxes Impacting Illinois Families 

Illinois residents are now facing a growing list of taxes that touch nearly every part of daily life: 

• A new sales tax on most rental items, including medical equipment, increasing costs for seniors and people with disabilities 

• An increased tax on cell phone services, making Illinois one of the most expensive states in the nation for wireless taxes 

• A new fee on paint sales, raising costs for homeowners, renters, and small contractors 

• Illinois will continue to tax tips and overtime, hitting service workers and single parents especially hard 

• An $8 billion electric rate increase, on top of nearly 40 percent higher energy costs over the past four years 

• Higher sales taxes in collar counties to fund a bailout of Chicago’s transit system 

• Increased tolls for commuters 

• Higher gas taxes, driving up transportation costs statewide 

• Rising property taxes in most communities across Illinois

Transit Bailout Adds to the Burden 

Among the most controversial changes is the transit funding package passed this year, which raises sales taxes in suburban and collar counties and redirects revenue away from local priorities to cover years of mismanagement in Chicago’s transit system. 

Rather than pursuing meaningful reforms, lawmakers chose to shift the cost onto families who may never ride the CTA, forcing suburban and downstate residents to pay for a system they do not use while their own road and infrastructure needs go unmet. 

A Growing Divide 

While families elsewhere are benefiting from a strengthening economy, lower gas prices, and upcoming federal tax relief, Illinois residents are being asked to do more, pay more, and get less in return. 

At a time when the state had the opportunity to provide relief, lower costs, and prepare for economic uncertainty, lawmakers instead doubled down on new taxes to fund unchecked spending. For working families and seniors living on fixed incomes, the result is a growing gap between Illinois and the rest of the country and a harder road ahead.