When Democrat politicians in Springfield talk about “reform,” taxpayers should brace for impact, because, more often than not, “reform” means more tax hikes. Their latest scheme? A $1.50 Delivery Tax, or what many have called the “Amazon Tax,” on nearly every package or food order delivered to your door. Legislative Democrats are calling it a necessary step to address massive debt within the Chicago area public transit system, but make no mistake, this is not about shared sacrifice or responsible budgeting. This is about bailing out Chicago’s broken public transit system by squeezing working families across the entire state.
At the end of the current calendar year, Illinois is facing a $770 million “fiscal cliff” in public transportation funding, primarily due to years of mismanagement at the Chicago Transit Authority (CTA). Instead of addressing the root causes, which include declining ridership, bloated budgets, or ineffective leadership, Democrats are pushing a plan that punishes everyone in Illinois, including residents of Northwest Illinois who rarely, if ever, use suburban Metra trains, suburban PACE buses, or the CTA’s buses and trains.
Under the Democrats’ plan, every delivery, whether it’s from Amazon, DoorDash, Instacart, Walmart, or a local pizza place, would be subject to a $1.50 fee. While some basics are technically exempt—like unprepared food or medication—add a rotisserie chicken or prepared cake to your online cart, and the tax kicks in. If you add a toothbrush or a bottle of shampoo to your prescription refill, the tax will be applied. It’s a regressive and confusing tax that penalizes working families, and it would be collected statewide.
This delivery tax is the epitome of regressive taxation. It hits low- and middle-income families the hardest. These are the individuals who often rely on delivery out of necessity, including single parents, seniors, individuals with disabilities, and rural residents without access to shopping centers. Yet, instead of offering relief, the state is demanding more from them to fund a public transit system that serves only a fraction of the state’s population.
And here’s the kicker: the tax doesn’t even apply evenly. Deliveries made by bicycle are exempt, which just so happens to benefit many areas of Chicago where bike delivery is common. So, while city residents find a convenient loophole, rural and suburban families are left paying the bill. This isn’t just bad policy, it’s targeted taxation.
It’s also geographically unjust. Why should taxpayers in Freeport, Rockton, Galena, Carbondale, or Quincy be forced to subsidize the Chicago Transit Authority when they don’t have access to those services and never voted for the leadership that ran them into the ground? It is the same classic big government thinking that is so commonplace in Illinois. Centralize power in Chicago, make decisions behind closed doors, and when things go sideways, send the bill to everyone else.
This proposal is a perfect example of what happens when one-party rule goes unchecked. There’s no real debate, no accountability, and no concern for how it affects downstate or suburban residents. Instead of tightening the belt in Chicago, the answer is always to raise taxes, shift blame, and double down on failed policies.
There is a better solution, one that does not rely on new taxes. Real reform starts with fiscal discipline, local control, and user accountability, not new taxes on people who had nothing to do with creating the problem. If the CTA is broken, Chicago should fix it. If ridership is down, leaders should rethink the service model. But don’t force families across Illinois to carry the load for a system that’s never served them.
For now, the bill has only passed in one chamber of the General Assembly. However, it still remains active and the liberal Chicago Senator who authored the legislation is still trying to line up support. We can expect the transit funding bill to return before the end of this year, and I will be a leading voice of opposition to this terrible proposal.
Illinois doesn’t need another tax. It needs leadership, accountability, and a serious conversation about how to deliver public services without bankrupting the people who pay the bills.
