Gas Tax Rollback Bill To Safeguard Against Recession Proposed in IL House

By Benjamin Cox on November 7, 2019 at 4:50am

An Illinois lawmaker wants to repeal the new gas tax in the state if the unemployment rate reaches a particular threshold. Republican Representative John Cabello of Machesney Park, a town near the Wisconsin border, has introduced a bill that would roll back the 19-cent per gallon gas tax if the jobless rate in the state hits 8% for three consecutive months, according to a report by the Illinois Center Square.

Under the terms of the bill, the Illinois Department of Employment Security would be required to notify the state Department of Revenue when the jobless threshold has been met. The tax then would revert to the pre-July 1, 2019, rate. The reduced rates would remain in effect until the unemployment rate in Illinois is under 8 percent for three straight months.

The unemployment rate in the state has only reached that threshold twice in the last 30 years. Cabello said the law would be a safeguard for the state’s working class against a major recession in the future. The doubling of the state’s gas tax is a funding mechanism for the state’s $45 billion capital infrastructure plan that was passed in May. The tax went into effect on July 1st. Cabello’s bill has been referred to the House Rules Committee for more discussion.