Illinois Ponders Taxing Internet Streaming Services and Gas Tax Hikes of $0.19

-edited

Illinois seems desperate to drive away every able body citizen who can possibly leave.

Illinois is considering several bills that will without a doubt drive more businesses and individuals out of the state. One of them is likely illegal.

Gas Tax Hikes

Please consider Bill Seeks to Increase Illinois' Gas Tax to Fund Road Repair.

Illinois lawmakers are considering raising the state's gas tax by 19 cents a gallon and hiking vehicle fees to pay for transportation infrastructure repairs.

Legislation introduced last week proposes the state's first gas tax increase since 1990 and could raise an additional $2 billion in revenue each year, the Chicago Tribune reported. But it also would hike the electric-vehicle fee from $17.50 to $148, and increase truck registration fees by $100.

The fees for driver's licenses would double under the proposal, from $30 to $60, while passenger vehicle registration would increase from $98 to $148.

Where Would the Money Go (Part 1)

"Doubling the state gas tax would bring Illinois to the second-highest overall gas tax burden in the nation, notes the Illinois Policy Institute.

Supposedly these tax hikes would go for road repairs. Perhaps about 10% would. The rest would go to bail out bankrupt Illinois' pension plans.

Netflix Tax

Next, please consider ILLINOIS BILL WOULD EXPAND CHICAGO’S ‘NETFLIX TAX’ STATEWIDE.

House Bill 3359 would create the “Video Service Tax Modernization Act” and “Entertainment Tax Fairness Act,” which would impose new taxes on satellite and video streaming service providers and subscribers. Users of those services would pay a 1 percent tax “for the privilege to witness, view, or otherwise enjoy the entertainment,” while companies would pay a 5 percent tax on their gross revenues.

Chicago currently stretches the definition of its 9 percent citywide “amusement tax” to include online streaming services such as Netflix and Spotify, as well as Playstation rentals.

The legality of Chicago’s “Netflix tax” is dubious. The Liberty Justice Center, the Illinois Policy Institute’s litigation partner, sued the city on behalf of streaming service customers in 2015, after the expansion of the tax to online services went into effect. The city tax was previously applied only to ticketed live entertainment performances and events.

The Center argued expanding the tax to online services violates the 1998 Internet Tax Freedom Act, a federal law. The Act prohibits taxes that discriminate against electronic commerce levied by any government body, including state governments, suggesting Illinois could expose itself to similar legal risks should HB 3359 become law.

Where Would the Money Go (Part 2)

This tax hike is even easier to state. No matter what anyone says, 100% of this money would be diverted to bail out bankrupt Illinois' pension plans.

Constitutional Amendment

These hikes are on top of a major Constitutional Amendment change to make the Illinois state income tax "Progressive". Rest assured it will dramatically increase taxes on the middle class no matter what these parasites say.

Get the Hell Out

I repeat my caution of last week: An Illinois' Demographic Collapse Is on the Horizon.

Get Out As Soon As You Can!

Yes, we live in Illinois. I expect to be out of this hell hole within 18 months. Plans are underway.

Mike "Mish" Shedlock

Comments (38)
No. 1-23
Realist
Realist

And yet, you are still there. I continue wondering where you are going. Any chance you will leave the US?

tz1
tz1

And you have not left yet. See Lot's wife.

flubber
flubber

How many straws can they add to the camel's back before it breaks? This is so sad and it will only get worse for those that cannot escape the state and its taxing authority.

mkestrel
mkestrel

Mish has talked about relocating to the western US. Moving requires preparation. Einstein indicated doing the same thing over and over (raising taxes) and expecting a different result was the definition of insanity. Illinois politicians are demonstrating real genius.

AWC
AWC

Hell, hit the big spending voters with a 50% exit tax. That'll stop the dinero exodus.

All funnin' aside, when y'all get down here, do us a favor. Dispense with the "That's the way we did back in Illinois" bullshit. We hear enough of that from the "That's the way we did it in California" refugees.

We already see how it all worked out for you, and don't need anymore advice on how backwards we are, or how we don't have enough laws.

abend237-04
abend237-04

Illinois unions have won. They're now sucking $10 Billion annually in unfunded obligations out of Illinois taxpayers. If this entire 19 cent tax gas ripoff were applied to just unfunded pensions, it would only cover one fifth. Get out before you have to walk.

Greggg
Greggg

Got to make up for the losses on the Smollett case somehow, right?

Carl_R
Carl_R

I totally disagree with the premise that these new taxes will go to support the unfunded pension liabilities. If they did, that would be a huge break from past behavior. A much more likely outcome is that these new taxes will support new spending, and that the unfunded pension liabilities will be kicked down the road to be dealt with later.

gdpetti
gdpetti

It's pathetic.... but no surprise since this corrupt idiot won against Rauner... who is most likely happy to be out of here. The state is broke and unlike the Feds, it can't 'print' money... so....we get this farce... which is needed to point out the obvious to the idiots that still believe the OWO can be fixed. Like the Russiagate farce, all of these machinations of the OWO, state or fed, has to be faced, unmasked... and Illinois is in line to face 'the man in the mirror'... and it's not a pretty reflection... the truth never is here in 'purgatory'.

Metronome
Metronome

Nice thing about unions is that they can't follow taxpayers out of the state.

timbers
timbers

I have a much better idea for raising much need revenue for government.

How about taxing at 1,000,000,000% PERCENT all income for each every citizen and public official who supported the Iraq War and/or, Syrian War, Afghanistan War, Lybia War, Yemen War, Somalia War, Venezuela War and any and all other wars and regime changes...plus an interest rate of 1,000,000,0000,000,000,000,000,000,000,000,000% per micro second and all interest compounded per micro second at same rete for past due tax owed.

Any public official not in full payment complain to be imprisoned forever until all debt paid.

It's only fair.

Mish
Mish

Editor

"I totally disagree with the premise that these new taxes will go to support the unfunded pension liabilities."

Something like 85% of the last corporate tax hike "for the schools" went to pensions

Mish
Mish

Editor

But yes, this new Gov has a shitload of new spending proposals

Six000mileyear
Six000mileyear

Illinois is so small geographically that its residents will buy gas in neighboring states.

People in Massachusetts love to shop in New Hampshire to avoid sales taxes. People in Connecticut buy gas in Massachusetts to avoid gas taxes. People in NY buy gas in NJ.

Blurtman
Blurtman

KidHorn
KidHorn

Illinois is just doing this before every one else does it. All governments are broke and their top priority is their sustenance. Not their constituency.

Roger_Ramjet
Roger_Ramjet

All of this to pay excessive pensions from a corrupt and highly abused pension system.

The piece de resistance is when pension recipients leave the state once their pensions begin, leaving the state without even the pension recipient helping to cover the massive cost to fund their retirement.

Absolute madness and stupidity.

Realist
Realist

Since US pensions are in such a mess, why don’t you move to a country that has solidly sustainable pensions. The top-ten list includes

Netherlands Denmark Finland Australia Sweden Norway Singapore Chile New Zealand Canada

RonJ
RonJ

Fall of the Chicago Empire.

History rhymes over and over again.

Quatloo
Quatloo

Chicago will be the new Detroit soon after the next decade begins. Sell your house and get out of there now!

sunny129
sunny129

I am surprised you have decided to stay this LONG, when these 'messages' were coming long time ago! Are you tied with RE properties, business obligation/family obligations? Or hoping that changes will come for better, in the near future?

2banana
2banana

So will Mish, like millions of others from failed blue states, move to red states and then proceed to destroy them also? Just look at Colorado and Florida.

How about we force those who voted for the messes of Chicago and Illinois suffer for the politicians they put in power?

Stupid should hurt. You should live under the crap you want for everyone else.

Realist
Realist

Mish. You should move to the province of Ontario in Canada. You would never have to pay to see a doctor or to go to a hospital. I checked out their largest public service pensions and they are really well funded HOOPP (hospital workers) is 122% funded, OTPP (teachers) 104%, OPTrust 105% OPB 101% and OMERS 95%. Compare that to Illinois public pensions! They have a Conservative (Like Republican) government. And the climate is similar to Illinois. I expect their would be a lot of wilderness to take photos. The province is huge. It would take 3 days of driving to go east to west or north to south They don’t get hurricanes or earthquakes, though there is the odd rare tornado. I don’t think they get major flooding either. You could live in Windsor and look across the river at poor old Detroit. Or perhaps Niagara Falls, Ontario. Then you could look across the river to Niagara Falls, NY! So you could just drive over a bridge and be back in the US again.The only downside is that you would have to learn to say “eh!” and be really friendly all the time! Do you like hockey?