House Dems Weigh Tax Hikes
The House chamber in Springfield
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While top Democrats ranging from Governor JB Pritzker to House Speaker Chris Welch to Senate President Don Harmon have insisted this year that there is no appetite for tax increases as a part of the new state budget, House Democrats were apparently asked their opinion on a package of tax hikes Thursday.
Sources say House Democratic Leadership gave members a laundry list of tax hikes in Thursday’s closed-door Democratic caucus to gauge support for what could pass to shore up a state budget that appears to be hundreds of millions of dollars out of balance.
Many of the options, we’re told, came from a proposal from a coalition of progressive groups, including the Chicago Teachers Union, that would raise $6 billion in new taxes. Those options include taxing digital advertising, closing the carried interest “loophole,” raising the corporate income tax, partially increasing the estate tax, and closing corporate tax “loopholes,” among others.
“I think leadership is just trying to see where there’s consensus in the caucus,” said one House Democrat anonymously yesterday. “Everyone recognizes how hard it is going to be to balance the budget.”
The Democratic caucus appears to be split in three factions: progressives who want to increase taxes and spending, “middle of the road” Democrats who don’t want to raise taxes but don’t want significant spending cuts, and moderates who want the legislature to cut more spending.
It isn’t clear what options, if any, presented to members may have reached support from 60 Democrats or what other options may be laid out for members in the final week of the legislative session.
We’re told the Senate Democratic caucus hasn’t specifically discussed revenue increases, which tracks with how they have handled budget negotiations in recent years.
“I have no idea how we’re going to do this,” said one Democrat, flatly, Thursday. “It’s a disaster.”
