Illinois Governor Pritzker’s proposal both received praise and worry.
Illinois Governor Pritzker’s Proposal
Illinois Governor Pritzker has put forth a plan to remove the one percent grocery tax. This proposed move by Illinois Governor Pritzker could bring relief to consumers.
However, this proposal by Illinois Governor Pritzker may also pose challenges for municipalities dependent on tax revenue. Illinois Governor Pritzker’s proposal comes shortly after the tax was reintroduced last July.
Illinois Governor Pritzker argues that eliminating the tax will combat inflation and increase disposable income for families. Illinois Governor Pritzker’s proposal will hopefully be approved despite a slight decrease in the annual consumer price index for groceries.
According to a published article by SmartNews, if approved, Illinois Governor Pritzker’s proposal is expected to be implemented either in July of this year or at the beginning of 2025.
Considering The Consequences
In a published article by ABC Chicago, many shoppers struggle to afford groceries, so the idea of eliminating the tax as proposed by Illinois Governor Pritzker is appealing. However, mayors are concerned about losing revenue that goes back to their communities.
The state would not reimburse municipalities for this loss, creating an unfunded mandate. Mayors are urging lawmakers to consider the consequences before making a decision, especially in an election year.