Illinois lawmakers approved a tax credit of up to about $300 for families with young children as part of the new state budget and now the governor is touting that the credit will give back to families who need it the most.
Gov. J.B. Pritzker, on social media, said over 1.4 million children will benefit from the first ever child tax credit in Illinois.
“Reducing childhood poverty, helping our economy, and giving back to those who need it most,” Pritzker said on X, formerly Twitter.
State Rep. Adam Niemerg, R-Dieterich, pointed to the recent finance forecaster Kiplinger’s analysis that shows Illinois is among the worst places to live for middle class wage earners.
“If the governor is serious about limiting taxes on those who really need it the most, we need to talk about reducing the income tax, property tax reform. You go to buy a car, you’re taxed on it. You live in your home, you’re taxed on it and if you die, your children are taxed on things you leave behind,” said Niemerg. “We are in a state where we have a $53 billion budget and it’s gone up exponentially since I have been in office, that’s three years. We had $900 million in new taxes that came in to fund illegals, and that’s where our tax dollars are going.”
Niemerg said how he’s in favor of reducing taxes but he said the child tax credit program will not benefit Illinoisans as much as Pritzker says it will.
“It’s a $300 tax credit for children if you make under $75,000 and let’s talk about the middle class wage earners here in Illinois, they’re carrying all the water for the unlimited taxation we have here [in Illinois],” said Niemerg.
The credit is available to Illinoisans with children under age 12 who qualify for the federal Earned Income Tax Credit. That credit is typically only available to married couples filing jointly, earning up to about $60,000, and single people earning up to about $50,000.
Opponents say the tax credit isn’t all that glamorous because it only affects certain families for a $300 income tax credit. Lawmakers reacted to a study by the Illinois Economic Policy Institute claiming the credit will reduce childhood poverty by 3.3%.
Niemerg said the legislature has to change the trajectory of the taxation in Illinois because small businesses and working class people are leaving.
“The governor wants to cite an income tax credit as the end all be all that’s going to reform the state of Illinois, [it’s] just a complete falsehood. We need to look at all these regressive taxes, we are the worst in the country and it’s not getting any better,” said Niemerg.
For taxes on 2024 income, the tax credit will cap at just over $300 for filers with three or more children under the age of 12. Taxpayers with two children face a cap of about $270 and taxpayers with one child face a cap of about $170. Niemerg said the credit is a drop in the bucket and there needs to be real reform.
“You can’t say ‘this tax credit is going to have this massive benefit,’ and then say, ‘by the way, in that same budget we’re going to raise taxes on the people by $900.’ They’re probably going to have to look at some sort of income tax increase because they don’t have any money to pay for things,” said Niemerg.
Proponents say the credit will get extra money every year to put food on the table, pay rent and help with childcare expenses.