SPRINGFIELD (WFEM) – Milk, bread, turkey and diapers – the effects of inflation have been significant for consumers.
Headline inflation is 6.2% and Republicans estimate the average family food bill has risen 5.4%.
Two Illinois House Republicans are hoping the state can provide some relief by giving people a refundable tax credit. Rep. Tom Demmer (R-Dixon) and Rep. Avery Bourne (R-Morrisonville) presented their plan on Tuesday morning.
They want single filers who earn 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.
They expect this proposal to cost around $ 1.4 billion. But where would this money come from?
Demmer and Bourne said lawmakers should consider using remaining funds from the US bailout, reallocating federal dollars that went to investment projects in Democratic districts in the current budget, or using additional revenue coming in. in Illinois.
“$ 400 won’t make all the problems go away, but it could have a positive impact,” Demmer said. “It could be an extra week or two of groceries. It could be a few more utility bills.
Republicans have explained that this credit will go to taxes filed in 2022. GOP members have not tabled specific language for the proposal. However, Demmer is hoping the bill will be introduced before lawmakers return to Springfield on Jan.4.
Bourne argued this should be a priority in both chambers.
“It’s just a proposal,” Bourne said. “But we would be looking at a full legislative package that would have to be bipartisan to ease this tax burden on Illinois families.”
However, the Pritzker administration said Republicans have refused to commit to meaningful solutions to help families cope with economic challenges throughout this pandemic. Press secretary Jordan Abudayyeh said the administration had put billions of dollars in rental and mortgage assistance, small business subsidies and utility assistance in the hands of working families. without any support from Republicans.
“Adding to the irony is the fact that Republicans were fiercely opposed to tax fair that would have granted tax relief to 97% of Illinoisans,” Abudayyeh said. “As Illinois Republicans now support direct aid with the costs to working families, we look forward to their support for President Biden’s Build Back Better program and urge them to share their views to this topic with their counterparts in Washington. “
Still, House GOP members said they have always fought for relief for businesses, local governments and individual taxpayers. Demmer said the administration should never have spent $ 1 million in federal aid on investment projects to help Democratic allies. Instead, he stressed that the money should only go to COVID-19 relief efforts.
“It’s certainly not too late,” Demmer said. “You don’t have to travel very far to find an Illinois family today that is doing groceries or Christmas shopping and feeling the pressure of inflation. They feel the pressure of rising prices, the pressure of rising taxes. It is not too late to help these families.
Meanwhile, Republicans believe the price of the Build Back Better plan continues to rise. Some note that many of the provisions may come from a “democratic wish list” and deviate from the original goal of rebuilding the country’s economy. Demmer said people should be careful about how Biden’s plan might affect inflation and taxes.
“Look at the amount of spending that has come out of Washington over the past two years,” Demmer said. “It’s several trillions of dollars. It was unexpected, it was not something we had planned. We had to respond to an emergency. But we have to be careful before continuing these multibillion dollar bills. “
A spokesperson for House Speaker Emanuel “Chris” Welch said they had not seen the House’s GOP plan. However, Republicans hope to speak with colleagues across the way to secure support for the inflation tax credit in the coming weeks.
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