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WNIJ's summary of news items around our state.

Taxing Consumer Services Could Help Illinois’s Revenue

Flickr user Parker Knight / "Chopperz 10" (CC BY 2.0)

Two tax policy organizations with distinct views released a joint report about Illinois revenue. 

It outlines how taxing services, such as haircuts and pet grooming, could generate up to two point one billion dollars in new annual revenue.

Ralph Martire, who is from the Center for Tax and Budget Accountability, says Illinois has one of the most narrow tax bases in the country.

"The Illinois sales tax applies pretty much just to the sale of products and misses services, and this is one of the real reasons why our sales tax doesn't function and--and frankly doesn't comport with the modern economy." 

Republican Governor Bruce Rauner discussed during his campaign the possibility of taxing some services. However, there has been no movement in the legislature to pass a sales tax on services, even as lawmakers work to bridge a 6 billion dollar shortfall in the 2016 budget.

Lisa Ryan is a graduate student in the public affairs reporting program at the University of Illinois at Springfield. She previously worked at Indiana Public Radio and the college radio station founded by David Letterman. She is a 2014 broadcast journalism and political science graduate of Ball State University.
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