(Springfield, IL) — Following Gov. JB Pritzker’s decision to block a tax-saving measure meant to help Illinois’ tipped workers in the service industry, State Senator Craig Wilcox (R-McHenry) is renewing his call for a Senate hearing on his Illinois “No Tax on Tips” legislation, Senate Bill 140.
“I filed this legislation several months ago, yet the majority party has refused to allow it even a basic committee hearing,” Wilcox said. “Republicans at the federal level are continuing to stand up for working families and lower-wage earners. It’s time for Illinois’ ruling party to do the same.”
The federal tip-tax exemption was included in President Trump’s One Big Beautiful Bill, but Illinois Democrats refuse to take steps to extend the exemption at the state level. Wilcox argues that the decision will not only take more money out of the pockets of service-industry workers, but also create unnecessary confusion by forcing taxpayers to navigate conflicting federal and state rules on tip income.
“This is effectively a tax hike on the people who can least afford it,” Wilcox added. “Democrats cannot claim to support working men and women while blocking measures that would provide real, substantive relief. My SB 140 would create a state-level tax credit equal to qualifying tip income. It deserves to be heard and to receive an up-or-down vote by the state legislature.”
By refusing to extend the federal “No Tax on Tips” provisions to the state level, Illinois joins Maine, New York, California, Massachusetts, Connecticut, Hawaii, and the District of Columbia in blocking the state tax relief for tipped workers.
