(The Center Square) – Illinois policymakers may be bracing for how a federal tax-and-spend bill that the U.S. House approved will impact the Land of Lincoln.
The U.S. House narrowly passed the so-called “big, beautiful bill” Thursday. It must be taken up in the U.S. Senate. The measure extends 2017 tax cuts, but also shores up taxpayer spending on things like food assistance and Medicaid.
Another aspect is the State and Local Tax, or SALT deduction. The threshold could increase from a $10,000 deduction to a $40,000 deduction. State Rep. Ryan Spain, R-Peoria, said that’s good and bad for high tax Illinois.
“I think as a policy initiative, perhaps, that keeps some people here in Illinois,” Spain said. “But we have to understand that, for regular working families, it’s the preponderance of other policies of the state of Illinois that are chasing them away.”
Illinois legislators are in session until May 31, the deadline to pass a state appropriations plan. Some have speculated they’ll have to return this summer to deal with how the federal spending will impact Illinois.
Illinois policymakers may be bracing for how a federal tax and spend bill that the U.S. House approved will impact the Land of Lincoln.
Illinois Gov. J.B. Pritzker’s move to end the Health Benefits for Immigrant Adults taxpayer subsidies may get a boost from the measure. Pritzker’s proposed budget cuts the HBIA program entirely, but keeps the Health Benefits for Immigrant Seniors program.
The programs have been the subject of audits showing the taxpayer cost eclipsing estimates with internal reporting flaws for participant eligibility. Over the last three years, the programs have cost taxpayers more than $1.6 billion.
Late last month, Asians Advance Executive Director Grace Pai said they are bracing for federal cuts and pushed for higher taxes in Illinois
“We think it’s really important for the state to step up and meet the need that is there, in terms of providing health care for immigrant adults,” Pai said.
The federal bill the U.S. House passed Thursday would reduce Medicaid dollars for states that cover non-citizen health care costs. The Kaiser Family Foundation estimates the taxpayer impact for Illinois through the next nine years could be $10 billion.
Before the bill passed, Pritzker posted on social media that “Hundreds of thousands of Illinoisans could lose access to their health care.”
“What’s big and beautiful about that?” Pritzker said.
State Sen. Terri Bryant, R-Murphysboro, said Illinois needs to focus on Illinois citizens when spending tax money.
“I know this: It’s citizens first, and that’s what our money has to go for,” Bryant told The Center Square. “That has to be the priority.”
The U.S. Senate must still take up the measure through a reconciliation process before it can be sent to President Donald Trump for his signature.
This article was originally published at www.thecentersquare.com
