Illinois Governor J.B. Pritzker has announced a bold proposal during his recent budget address in Springfield: the permanent repeal of the state's 1% tax on groceries. This tax, temporarily suspended during the COVID-19 pandemic, is deemed regressive by the governor, disproportionately burdening families already struggling with increasing prices and economic challenges. Pritzker sees repealing this tax as a crucial measure to alleviate financial pressure on households, even if it only translates to a few hundred dollars saved.

DNC Chairman Jaime Harrison Holds News Conference Regarding Chicago Hosting The 2024 Democratic National Convention
Credit; Scott Olson / Getty Images
Illinois Governor J.B. Pritzker
loading...

The temporary suspension of the grocery tax, initially part of Pritzker's Fiscal Year 2022 budget, was estimated to save shoppers up to $400 million. However, for this repeal to become permanent, it must gain approval from lawmakers. There's uncertainty surrounding whether state officials would prevent local governments from imposing their own sales taxes on grocery items if the repeal goes through.

attachment-2024-02-22 11_52_40-How Are Groceries, Candy, and Soda Taxed in Your State_ and 8 more pages - Work
Credit: The Tax Foundation
loading...

Illinois is among the 15 states that currently impose some form of sales tax on groceries, with specifics usually targeting items intended for off-premises consumption. The proposal aligns with a growing trend among states to eliminate or reduce sales taxes on groceries, recognizing their disproportionate impact on food-insecure communities.

GROCERY-STORE
loading...

A study from 2021 reveals a stark reality: approximately one-third of all U.S. counties do not exempt grocery foods from general sales tax. This means that the lowest-income families in those areas are particularly vulnerable to food insecurity. By repealing the grocery tax, Pritzker aims to address this disparity and provide much-needed financial relief to those who need it most.

In addition to the grocery tax repeal, Pritzker has also outlined various other proposals in his budget address, including an expanded child tax credit and initiatives to alleviate medical debt for hundreds of thousands of Illinoisans. Basically, what it comes down to is that a $100 grocery bill will now cost just a dollar less. However, add that up over a years' time and you might just pocket $100.

Most popular grocery stores in America

The most popular grocery stores in America, from corporate chains to family-owned enterprises. Stacker ranked them using consumer ratings sourced from YouGov polls.

Gallery Credit: Stacker

LOOK: 20 American foods that raise eyebrows outside of the US

Stacker compiled a list of 20 unusual and uniquely American foods that might raise eyebrows outside the U.S.

Gallery Credit: Charlotte Barnett

More From Eagle 102.3