Illinois Senate Democrats are advancing a new slate of tax proposals targeting digital advertising, billionaires, and large corporations, arguing that wealthy individuals and major companies are not paying their fair share.
Lawmakers unveiled the proposals this week at the Illinois State Capitol, saying additional revenue is needed to support social services and reduce pressure on working families.
State Sen. Robert Martwick, D-Chicago, said Illinois already has one of the highest tax burdens in the nation but argued that ordinary residents are shouldering too much of the load.
“If you live in Illinois, you pay a greater percentage of your income in taxes than almost anyone anywhere in the country,” Martwick said at a Wednesday press conference. “That’s not right.”
Martwick has served in the state legislature since 2013.
Chicago Mayor Brandon Johnson has also called on lawmakers in Springfield to adopt what he describes as “progressive revenue” policies to fund city and state priorities.
During the press conference, State Sen. Robert Peters, D-Chicago, focused on digital advertising, saying tech billionaires generate massive profits from online ads.
“What we need is a digital ad tax,” Peters said. “We need to take the money from these ultra-rich billionaires and make it so fewer people have to rely on food pantries and safety net hospitals.”
Democrats also outlined plans to raise taxes on corporations, impose new levies on wealthy individuals, and close what they described as tax loopholes.
In the House, State Rep. Hoan Huynh recently introduced the Billionaire Hedge Fund Fee Act. The bill, House Bill 4366, would impose fees on certain financial transactions beginning July 1, 2026.
State Sen. Karina Villa, D-West Chicago, criticized the Trump administration’s budget policies and argued Illinois must step in by taxing corporations and billionaires.
“We in Illinois need to be the adults in the room,” Villa said. “We need to tax those corporations and those billionaires.”
State Sen. Rachel Ventura, D-Joliet, dismissed concerns that higher taxes could drive businesses out of the state.
“How can we not do this?” Ventura said. “The economy won’t work if we keep giving all our money to the rich.”
Republicans have pushed back against the proposals, warning they could hurt economic growth and worsen Illinois’ business climate.
Illinois Senate Republican Leader John Curran, R-Downers Grove, said lawmakers should focus on controlling spending instead of raising taxes.
Curran pointed to last year’s rollback of health care funding for undocumented working-age residents as an example of necessary cost-cutting.
Gov. J. B. Pritzker has acknowledged that the state cannot afford unchecked spending. Curran noted that the fiscal year 2026 budget remains about $2 billion higher than the previous year.
State spending has increased roughly 43% under Pritzker since 2019, amounting to about $16 billion in additional annual spending.
Curran said the governor will deliver his fiscal year 2027 budget address on February 18 and that budget negotiations are expected to intensify in the coming weeks.
As Democrats press forward with their tax agenda, the debate highlights deep divisions over how Illinois should balance revenue needs, economic growth, and the state’s long-term financial stability.
