In the midst of National Small Business Week, Senate Republicans joined together to sound the alarm over a new proposal from Governor JB Pritzker’s Democratic allies to raise taxes by $6 billion, warning that the move would devastate Illinois’ already struggling small business community. The proposed tax hikes come on the heels of a $1 billion increase enacted this year to support record-high state spending in the current budget.

Despite the burdens placed on hardworking Illinoisans, Democrat lawmakers are now considering new taxes that would hit local employers even harder, including a digital advertising tax that penalizes small businesses trying to reach customers online, and a corporate income tax increase that targets those already operating on tight margins.

Senate Republcians argue that when state leaders choose tax hikes and policies that stifle growth, it’s working families who suffer the consequences. They add that it is time to stop forcing small businesses and working families to foot the bill for the Governor’s out-of-control spending, including hundreds of millions of dollars in expanded benefits for non-citizens.

Senators also pointed to broken promises from Governor Pritzker, including his decision to reinstate the franchise tax after a bipartisan agreement was reached in 2019 to phase it out. That reversal, Republicans argue, further undermines trust in state leadership and contributes to an unpredictable, anti-growth climate.

As budget negotiations for Fiscal Year 2026 continue, Senate Republicans are calling on Democratic lawmakers to reject Governor Pritzker’s tax-and-spend agenda and work together to pass a responsible, balanced budget.