Bill Text: IL HR0116 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Declares opposition to raising the sales taxes on food and drugs.

Sponsorship: Moderate Partisan Bill (Democrat 19-3)

Status: (Failed) 2019-01-08 - Session Sine Die [HR0116 Detail]

Download: Illinois-2017-HR0116-Introduced.html

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HOUSE RESOLUTION
WHEREAS, Families have already suffered catastrophic
damages as a result of the budget impasse and, according to the
Pew Center, a food and drug tax is the most regressive tax that
punishes citizens on a fixed income; and
WHEREAS, In 2015, there were a total of 160,569,757 retail
prescription drugs filled at pharmacies in Illinois; and
WHEREAS, Prescription drug prices increased 12.6% in 2014,
outpacing inflation; increasing taxes for prescription drugs
will become more financially straining for Illinois residents,
especially since 8.8% of Illinois senior citizens live in
poverty; and
WHEREAS, According to the Consumer Healthcare Products
Association, over-the-counter (OTC) medicines are a reliable
and affordable way of maintaining wellness for millions of
American families; and
WHEREAS, OTC medicines not only treat the symptoms of
common ailments but also help prevent a number of costly
chronic conditions through products like smoking cessation
programs; and

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WHEREAS, The average American household spends
approximately $185 on non-prescribed OTC medicines per year
while the average senior citizen spends $356 yearly; and
WHEREAS, Many states have already acknowledged the
therapeutic value and cost-effectiveness of OTC medicines and
allow a retail sales tax exemption for the purchase of these
products; Florida, Maryland, Minnesota, New Jersey, New York,
Pennsylvania, Rhode Island, Texas, Virginia, and the District
of Columbia do not levy sales taxes on OTC medicines; and
WHEREAS, The value of OTC medicines in the United States
found that OTC medicines offer $102 billion in annual savings
relative to available alternatives; and
WHEREAS, The Consumer Healthcare Products Association
advocates for policies that support access to OTC medicines by
exempting them from sales tax; and
WHEREAS, Food security is an issue that places an enormous
burden on struggling families within Illinois; and
WHEREAS, According to the Illinois Commission to End
Hunger, almost 1.7 million Illinois residents still face food
insecurity, a number greater than the entire populations of
Hawaii, Montana, and 10 other states; and

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WHEREAS, According to the Illinois Commission to End
Hunger, more than 449,000 low-income Illinois children
participate in the National School Lunch Program but do not
receive school breakfast; it is increasingly vital that food in
the State be at a reasonable price; and
WHEREAS, The lowest-income Americans spent an average of
$3,667 on food in 2014, which amounts to 31.4% of their income
according to the United States Department of Agriculture; and
WHEREAS, For a family of four living on $2,000 a month, to
spend 34% of their income on food would equate to $8,160 a
year; and
WHEREAS, The states with the highest taxes on food,
Mississippi, Arkansas, and Alabama, had the highest rate of
food insecurity in 2014; and
WHEREAS, Illinois may also lose tax revenue to bordering
states; if Illinois increases taxes on food and drug, residents
may drive to Indiana, Iowa, Missouri, and Kentucky to purchase
those goods, causing additional harm to our economy; and
WHEREAS, According to U.S. News and World Report, taxing
groceries and prescription drugs shifts the state's focus on

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the real issues, which should be alleviating the barriers for
quality food and necessary medications for low-income
citizens; and
WHEREAS, In Illinois, the bottom 20% have an average income
of $10,900 yet pay 13.2% of their income to taxes; Illinois is
currently ranked third for the highest taxes on the poor
according to the Institution of Taxation and Economic Policy;
and
WHEREAS, A tax on food and prescriptions drugs is fiscally
damaging to middle-class families because their average income
in $49,500 yet 10.8% goes toward taxes; and
WHEREAS, Expanding taxes on food and drugs
disproportionately hurts lower-income families further
resulting in a higher rate of food insecurity; and
WHEREAS, Senior citizens and children are most affected by
food insecurity and drug prices; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
believe that sales taxes on food and drugs should not be
increased.