Even though tax revenues are up over $1B as compared to the same period last year, Illinois Legislators have introduced four bills in Springfield that would increase our taxes. This is in response to the Federal Government reducing Illinois funding by $587M since July 1st of last year.
In response, Governor Pritzker has reduced state spending by $482M, but it doesn’t look like its going to stop there. Illinois House and Senate Democrats have introduced four bills to further increase our taxes.
The details of this pending legislation are as follows…
1 – A bill that imposes a 10% tax on gross revenues derived from Digital Advertising Services. It applies only to businesses with over $150,000,000 in annual gross revenues from digital advertising within the state.
2 – The “Extremely High Wealth Mark-To-Market Tax Act” proposes a 4.95% state income tax on the annual increase in value (unrealized capital gains) of assets for residents with a net worth of one billion or more. Introduced in Feb 2026, it targets major wealth growth such as stocks and real estate, and includes provisions to prevent tax avoidance through transfers to trusts or family members.
3 – Introduced in February 2026, this bill aims to close corporate tax loopholes by reforming how Illinois handles offshore tax havens. It targets multinational corporations that shift profits to lower tax jurisdictions by limiting the exclusion of certain foreign members from a unitary business group’s Illinois tax return.
4 – This one focuses on modifying state tax incentives by eliminating specific construction job credits and high-impact business credits. The bill aims to close corporate loopholes, specifically targeting business interest deductions and modifying rules for biodiesel, renewable diesel, and other tax credits.
House Speaker Emanuel “Chris” Welch has also been promoting a tax on millionaires.
Let me leave you with this…
Sen. Graciela Guzmán, (Dem., Chicago), who sits on the coalition’s executive committee, said, “I think right now the growing sentiment is ‘Let’s get as much revenue as possible,’” These groups normally just throw tax proposals together and hope for the best, but Guzmán has said that they’re focusing on whether these ideas can pass both chambers and be signed into law.
They’re coming, my Brother and Sisters. They now have the perfect excuse to raise our taxes.
I’ll assume that anything they pass will happen before the beginning of the next fiscal year beginning in July. And as I have stated on numerous other occasions, our voters will vote with their feet.
If they pass the tax on Billionaires, what do you think they’ll do? They’ll move, taking with them hundreds if not thousands of jobs.
The only one who’ll be left paying it will probably be Pritzker.
If they pass the Digital Advertising Tax, what do you think those corporations will do? They’ll move, taking hundreds if not thousands of jobs with them.
Shall I go on?
I keep hoping, to no avail, that someone with a brain will teach these legislators that raising taxes only does one thing, which is reduce their overall revenues. I feel like I’m jousting at windmills.
We’ll see how this one shakes out. As this story progresses, I’ll keep you informed.
And as always, if you are having difficulties with your accounting and tax work, we’d love to hear from you.
We’re all going to get through this. Let’s get through it together.
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Chris Amundson
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