Two Illinois House Republicans have put forward a tax credit proposal to help families in the state cope with rising inflation.
Dixon Representative Tom Demmer and 95e District Representative Avery Bourne introduced an “inflation relief” tax credit that would provide payments ranging from $ 200 to $ 400, depending on the income and tax filing status of Illinois families.
Demmer says next year’s tax credit could be used for everything from groceries to gasoline: “$ 400 won’t solve all the problems, but it could have a positive impact. It could be an extra week or two of groceries. It could be a little more [dollars toward] utility bills. It could be the difference between being able to buy new shoes or a new winter coat for your kids.
Bourne says families in Illinois are particularly feeling record inflation: “Kiplinger ranked Illinois as the least tax-efficient state for middle-class families. While inflation is certainly having an impact on families across the country, it is having an acute impact on families here in Illinois who are already burdened with higher taxes. We hear a lot of stories this time of year with inflation about increasing the cost of Thanksgiving meals or increasing Christmas presents, but it’s so much more than that. It’s the daily groceries and the cost of heating your home.
The plan is for single filers earning up to $ 75,000 to get a $ 200 tax credit. Joint filers earning up to $ 150,000 would get $ 400 under the scheme, and heads of households earning up to $ 112,500 would get $ 200.
Bourne and Demmer estimate that this proposal will cost around $ 1.4 billion. Demmer says the state can afford the tax credit with one of two options: “We have a few options today. The first is to consider the Covid relief dollars the state of Illinois has received from the federal government. We have received over $ 8 billion in federal Covid relief funds over which the state has significant control and authority. During this year’s budget, Democrats in the Legislature thought it wise to include $ 1 billion in member-driven investment projects in Democrat-only districts using some of these Limited Covid relief dollars we received from the federal government. We think it’s fair to question the wisdom of using this, especially since 2 years ago Illinois enacted its own investment bill. We could reallocate those dollars to investment projects that are not related to Covid and instead directly [them] to taxpayer relief for families in every district in every part of Illinois. “
Demmer says the second option is to use the extra money the state declares in overall income to help families in Illinois. The bill is expected to be tabled before lawmakers return to Capitol Hill on January 4e. Bourne went on to say that the bill should be a bipartisan priority for both houses of the General Assembly. Bourne and Demmer said they would cross the aisle to work on the proposal in the coming weeks.