That is basic statute, principle, behind income taxation. Illinois does not tax health insurance benefits used to pay medical costs. That is obvious. Taxing total insurance proceeds without provision, to reduce payment by covered costs and insurance premiums paid for that coverage, is obviously wrong. That is evidenced in Federal income taxation.
Tax imposed by IDOR violates democratic principle.
It is tax on governed but not governing. This violation of ownership rights is evidence of unfair taxation. It shows intent of General Assembly at time of legislation.