Prairie State Wire

Illinois House Republicans announced a warning about a proposed service tax in Springfield, with Deputy Leader Ryan Spain urging taxpayers to remain vigilant about its potential impact on consumers.

According to a statement on Spain’s official website, the proposed service tax would apply to a wide range of everyday services, including personal care, professional services, and home repairs. Spain said that the tax would be "a massive expansion of the tax base" that could negatively affect working families and small businesses across the state. He urged Illinoisans to "guard their wallets" as the measure gains traction during ongoing budget talks.

As reported by Capitol News Illinois, the service tax proposal is under discussion among Democratic lawmakers as part of a strategy to stabilize state revenues. Supporters argue it could modernize Illinois’ tax code and reduce reliance on income and property taxes, though no formal bill has been introduced yet. GOP legislators, including Spain, have voiced strong opposition, citing its potential burden on everyday consumers.

According to the Illinois Policy Institute, a broad-based service tax could extend to more than 80 categories and raise billions in new revenue annually. Their analysis highlights that Illinois currently exempts most services from taxation, making this proposal a significant policy shift. The Institute warns that such a tax could suppress job growth and disproportionately affect low-income families who depend on basic services.

The official website of the Illinois House Republicans states that the caucus serves as the minority party in the Illinois General Assembly and advocates for fiscal discipline, lower taxes, and transparent governance. Illinois Republicans regularly challenges tax increases and prioritizes policies aimed at reducing government waste. Deputy Leader Spain is among the leading voices advancing alternatives to what the caucus sees as harmful tax legislation.