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Saturday, May 18, 2024

Ugaste on Illinois taxes: '[Taxes are] too high and its having a terrible impact on the state in the way businesses and residents are leaving'

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Dan Ugaste, candidate for state representative in the 65th District | Facebook/Dan Ugaste

Dan Ugaste, candidate for state representative in the 65th District | Facebook/Dan Ugaste

Dan Ugaste, candidate for state representative in the 65th District, recently weighed in on the issue of high taxes in Illinois. 

Ugaste criticized Gov. J.B. Pritzker’s management of federal COVID relief funds and PPP loans during the pandemic. 

"As far as the funds received, he didn't do a very good job at all," Ugaste told McHenry Times. "We received between $12-13 billion and of that amount, certain COVID costs were covered. After that, the unemployment insurance fund was in debt of $4 to $5 billion, and under federal rules we were allowed to pay that back. Republicans called on Democrats to pay back all the money to make the fund whole, but the democrats with their majority decided against that. They took money to spend on things in their districts and all the remaining funds went to democratic districts and was done on a totally political basis." 

Illinois' property tax rate is the second highest in the nation at 2.27%, behind only New Jersey, according to a June report by Rocket Mortgage. The owner of a $194,500 home in Illinois will pay $4,942 annually in property taxes. 30 states have property tax rates lower than 1%.

"[Taxes are] too high and it's having a terrible impact on the state in the way businesses and residents are leaving. All those problems just compound the problem," Ugaste said. 

Pritzker doubled Illinois' gas tax from 19 cents to 38 cents in 2019, according to Fox News. Pritzker also instituted an annual gas tax increase. Illinois Democrats passed legislation postponing this year's scheduled gas tax increase of 2.2 cents from July to January, Fox News reported.

The gas tax increase delay was part of a bundle of tax rebates and delays in the record $46.5 billion FY 23 budget, according to Illinois Policy. The tax rebates and delays will save the average Illinois family $556. The 2.2 cents increase to the gas tax will take effect on Jan. 2023, and will be followed by another increase in July 2023, likely of 3.8 cents per gallon, bringing Illinois' total gasoline tax up to 45.2 cents per gallon.

Ugaste thinks that the move is just a PR move and doesn't go far enough to help Illinois families and would prefer more permanent tax relief reform.

"I think it's just a political stunt," Ugaste said. "I voted for it because I want to give people in the state relief anywhere they can get it, but other states did things like rebates to taxpayers. We did the gas tax increase for a very short period of time and it was done just to be able to say they did something. I support any relief that comes because Dems are offering no permanent relief. That's what we need, not these piecemeal political stunts. I would much rather see us striving to come up with real solutions that offer permanent relief."

A March report by WalletHub found that Illinois has the tenth overall highest tax burden in the nation at 9.7%. The report weighed property taxes, income taxes, and sales and excise taxes.

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