VETO SESSION: Transit $2.5 Billion Tax Hike and $8 Billion Energy Tax Hike

Illinois Democrats Raise Taxes During Veto Session

Illinois residents and businesses lose again during veto session for 2025. Democrats always talk about how they deliver, and they certainly did with billions in new tax hikes for working families. We learned a lot from this past veto session and one thing is clear: Illinois must do better. Families and businesses struggle to survive in our state due to high taxes, high energy rates, and less freedom. Below is what Illinois Democrats delivered to Illinois citizens.

Transit Tax Hike

Energy Tax Hike

Decoupling Tax Hike

Democrats broke the 2016 “Lock Box” promise that protected road and bridge funds to steal millions to fund the Chicago transit crisis. Downstate road funds will now be sent up north every year.

Illinois Democrats turned a $230 million transit problem into a $2.5 billion tax hike. Senate Bill 2111 raised major concerns from House Republicans over the timing and purpose of the legislation. Their plan raises sales taxes by $480 million in Chicago and surrounding areas and sweeps $1 billion from the road fund (through sales tax on MFT ($473M) and interest on balance ($478.1M). In addition to sweeping road funds, individuals who use Illinois’ tollway system will see a 45-cent increase (60% for cars) and 30% for commercial vehicles. Even worse, the new toll structure is tied to inflation, so the rates will continue to rise year-after-year.

Governor Pritzker and Mayor Johnson continue to mismanage state and city governmental agencies and departments.

The “new” Transit Governance Board consists of 20 members:

  • 5 appointments from the Governor
  • 5 appointments from the Chicago Mayor from the City of Chicago
  • 5 appointments, 1 per collar county
  • 5 appointments from suburban Cook County

This governing board should have included appointments from all four legislative leaders, in addition to the Governor. There has been no transparency from the start as Democrats rammed this bill through in the middle of the night with not one hearing with the language. This is not how government to operate and this is not what the people of Illinois deserve.

Energy Tax Hikes

Senate Bill 25 opens the door to an $8 billion hike in power bills, fewer jobs, and a less reliable energy supply. The truth is, this not an energy plan- it’s an environmental giveaway that gives unelected bureaucrats power to raise rates. Families and businesses saw their energy bills skyrocket this past summer, and now we are gambling again on a “green fix” to combat the rising costs of energy in Illinois. CEJA (Climate and Equitable Jobs Act) and FEJA (Future Energy Jobs Act) policies have shut down reliable coal and gas plants resulting in higher rates for consumers.

House Republicans support an “all-of-the-above” energy plan that is realistic and will keep costs down. Reliable and affordable energy is vitally important for our state, but this is the third “green energy” project that is making our grids unstable as demand increases. Unfortunately, we could be taking advantage of coal and nuclear, but Democrats are gambling on unproven technology — and making ratepayers foot the bill for it. Families across Illinois deserve relief, but this bill will make energy more expensive and less reliable.

“This bill is bad for families and small-businesses across the state of Illinois who are already struggling,” Schmidt said. “We are going down the wrong path and SB25 does nothing to help with immediate relief. This bill does not help generate the power supply we need, it’s only going to make energy rates increase even more, and that’s the last thing my constituents need, especially in East St. Louis.”

Springfield Democrats Raise Taxes by “Decoupling” Families and Businesses

Illinois taxes are some of the highest in the nation, including the corporate tax rate that is the 3rd highest out of 50 states. Instead of working to reduce taxes, progressive Democrats have voted in favor to “decouple” Illinois from federal tax relief that President Trump put in place. (Senate Bill 1911) will strip families and businesses from receiving tax cuts passed at the federal level. The provisions Democrats voted to block are designed to help businesses grow and recover from the pandemic, specifically small-businesses. This bill will definitely send the wrong message to businesses looking for a business-friendly climate with less mandates.

Once again, Democrats chose to push back against the Trump Administration’s tax cuts to create over $211 million in new taxes on Illinois families and small businesses.

We should be offering incentives to build and work in our state but this legislation sends a clear message: we are closed for business. Decoupling businesses and families because of poor policies crafted in Springfield is wrong.

Illinois Democrats Double-Down Protecting Illegal Immigrants

House Bill 1312, this legislation further restricts where immigration laws can be enforced. Federal immigration officers are risking their lives to protect communities across the state of Illinois by arresting criminal illegal immigrants. The sanctuary state policies however, have made it almost impossible for local police to help enforce current federal laws. The rhetoric and pushback from Illinois Democrats are making matters worse as they craft more legislation aimed at blocking ICE from doing their job. The bill creates lawsuits against immigration agents and essentially, bans federal immigration officers from making civil arrests in courthouses, daycares, hospitals, and college campuses. Furthermore, it allows people (regardless of immigration status) to sue government agents for violations of their constitutional rights; includes punitive damages.

Rather than help federal authorities keep communities safe from criminal offenders, Illinois Democrats have unleashed attacks against the brave men and women who work around the clock to improve public safety.

We must restore law and order here in Illinois and keep our communities safe. It starts with supporting our law enforcement and crafting policies that make their job easier, not harder.