This year’s legislative session may be winding down, but there’s still a lot going on that affects small businesses.
House Democrats have amended SB 81 to increase the minimum wage for employees 18 and older to $15 per hour by 2022. An analysis by the NFIB Research Center has found that raising the state minimum wage to $15 will result in 93,000 fewer jobs in Illinois by 2027.
NFIB is asking small business owners and others to urge their legislators to vote “no” on raising the minimum wage.
Four Working Days Remaining
As the legislative session nears its conclusion, the Senate passed a revenue increase bill that will hike income taxes permanently while not making any substantial spending reductions.
Senate Democrats, who hold a majority, decided that they would no longer wait for a bipartisan agreement on a budget, so they passed a $5.4 billion tax bill out that will increase income taxes on individuals up to 4.95 percent and up to 7 percent on corporations.
They also added the 6.25 percent sale tax to five services:
- Laundry/dry cleaning, storage
- Storage space and units
- Private detective/alarm/security
- Pest control
- Tattooing
There is also a 5 percent tax assessment on satellite TV and a 1 percent tax on cable, among other provisions. Landscaping and home repair were taken out of the bill.
Governor Rauner is expected to veto the bill because it raises taxes without reducing spending or enacting a property tax freeze.
House Democrats, meanwhile, are looking at their own revenue bill that will probably be very different from the Senate’s spending plan. While there are continuing calls for bipartisan negotiations in the House, actions are not matching words. Instead, dysfunction seems to prevail as finger pointing and fault-finding is on full display.
Both chambers are off today, but the House will be back in session on Sunday afternoon with revenue committees scheduled. Both Chamber will then be meeting until May 31.
