SPRINGFIELD – Following a subject matter hearing on progressive revenue initiatives in the Senate Revenue Committee Wednesday, members of the Illinois Senate Progressive Caucus called for continued action to modernize Illinois’ tax code.
“While wages remain stagnant and federal funding cuts threaten essential services, we cannot continue to uphold a system where working families carry the weight of generating revenue,” said State Senator Karina Villa (D-West Chicago). “As life gets more expensive for everyday people, corporations and the ultra-wealthy are reaping the benefits of a system that asks too little of them. Working and middle-class Illinoisans are tired of footing the bill. It is time for the rich to pay their fair share.”
During the hearing, caucus members highlighted a series of proposals aimed at creating a more equitable tax structure, including measures to ensure the ultra-wealthy contribute more fairly, close corporate tax loopholes, modernize taxation of digital advertising and strengthen oversight of tax credits and deductions.
The hearing focused on four bills currently before the Senate:
- Senate Bill 3376 would apply Illinois’ personal income tax rate to the appreciation of assets for residents with a net worth of $1 billion or more.
- Senate Bill 3486 would strengthen corporate tax accountability by addressing how large, multinational corporations report income.
- Senate Bill 3353 would apply a 10% tax on a digital advertisers’ annual revenue if the revenue earned exceeds $150 million.
- Senate Bill 3796 would decouple Illinois from federal tax changes, end high-impact business credits and require a cost-benefit analysis of corporate tax incentives.
Caucus members emphasized that Illinois’ long-term economy stability depends on investing in working and middle-class families, maintaining access to essential public services and improving the overall quality of life. They argued that Illinois can no longer rely on tax loopholes and corporate carve-outs that have failed to deliver meaningful, long-term economic benefits for Illinois residents.
“People are feeling the price pressure in their lives from rising rent, more expensive groceries and rising insurance costs,” said State Senator Robert Martwick (D-Chicago). “We need comprehensive revenue reform in Illinois to support everyone in the state, not just the richest few. We can uplift the working and middle classes with the financial support to build a future for themselves at a time when the economy and federal administration are very unstable. Our communities are facing urgent need, and we must take decisive action this month by taxing the rich to help our communities and move Illinois forward.”
Members of Illinois Senate Progressive Caucus stressed the urgency of reforming Illinois’ regressive tax system, especially as families navigate a broader national affordability crisis. Through the remainder of the budget process, caucus members will continue advancing equitable revenue solutions aimed at delivering meaningful economic relief for Illinois families.
