Prairie State Wire

The Illinois Freedom Caucus has announced its opposition to Senate Bill 2111, which proposes a "Netflix and amusements tax" on streaming services and family entertainment events. The revenue from this tax is intended to fund a bailout for mass transit in the Chicago area. The group communicated its stance via the social media platform X.

According to the Illinois Freedom Caucus' post, the proposed legislation is seen as an extension of previous tax expansions, such as those on services and pizza delivery. It now targets streaming platforms and family entertainment for additional revenue. The Caucus argues that these taxes would impact users of streaming services like Netflix and families attending festivals or other amusements, suggesting that the taxes are designed to subsidize mass transit without implementing structural reforms. They assert that Illinois Democrats are shifting the tax burden onto consumers and entertainment users.

A July 2025 article by Illinois Policy outlines that Illinois House Democrats have suggested a package including a 7% "amusement tax" on streaming services like Netflix and Spotify, along with increased surcharges on large events and concerts. This tax plan is part of a broader $1.5 billion transit funding proposal linked to SB 2111, aimed at addressing budget shortfalls for transit agencies such as the Chicago Transit Authority (CTA), Metra, and Pace Suburban Bus. Opponents argue that these taxes would affect households and entertainment venues during a time when Illinois already faces one of the highest tax burdens in the nation.

The National Independent Venue Association (NIVA) has expressed concerns about the proposed 7% amusement tax under SB 2111, stating it would place a significant burden on live performance venues, festivals, and small entertainment businesses. NIVA warns that this levy could "devastate" the live entertainment ecosystem in Illinois. Their analysis estimates that independent venues currently operate at a 78% non-profit margin in Illinois, with the new tax potentially costing the state $4 billion in economic impact plus $1.3 billion in wages annually. NIVA specifically highlights the streaming and concert ticket tax components of SB 2111 as direct threats to local business viability.

According to its official webpage, the Illinois Freedom Caucus is composed of conservative state legislators and policy advocates committed to principles of limited government, lower taxes, and fiscal accountability. The group frequently challenges proposed tax increases while supporting efforts to reform spending, promote transparency, and reduce regulatory burdens for taxpayers and small businesses.