Chicago Illinois Taxes now Highest in the Nation -- 10.25%

[drudge]

Chicago, IL. -- A drink at the bar, a fast-food meal and back-to-school shopping are among those things about to get a bit more expensive in Illinois.

Early Saturday, Cook County Board President Todd Stroger struck a deal with board members, who approved a 1 percent increase in the sales tax - driving Chicago's overall sales tax to double digits at 10.25 percent, easily among the highest of any big city.

And it will be enacted just in time for the Christmas shopping season.

Senator Barack Obama represents Illinois and is running for President of the United States.


“We got where we needed to be, and that’s a great victory for the five and a half million people who live and work in Cook County,” Stroger stated in a release early Saturday. “By working together, my administration and the board of commissioners have achieved a common goal today – to ensure that the millions of County residents who rely on us for vital services can continue to count on us to meet those critical needs.”

The budget also includes, according to the release from Stroger's office, "county-wide cuts of 4 percent, up to $180 million in sales tax anticipation notes, and various other revenue adjustments that have been made throughout the amendment process. The Stroger administration also agreed to fast-track its proposal to move towards an independent governance structure for the County’s health care system."

After months of perhaps the county's most contentious budget battles ever and the looming threat of court intervention in the budget debate, the county's $3.2 billion budget is set to be balanced by hiking the county's share of the sales tax from .75 to 1.75 percent.

The 1 percent sales tax hike will bring in more than $400 million in new cash every year to the county. This year, it will bring in about $71 million.

The county faces a $234 million deficit.

The influx of money will likely help Stroger avoid having to seek a tax increase in 2009 and possibly in 2010, when he's up for re-election.

Stroger had been one vote away from hiking the sales tax to 2.75 percent and he said he'd refuse to come down below setting it at 2 percent.

But after a day of heavy negotiating - including much intervention by labor leaders like Dennis Gannon, of the Chicago Federation of Labor, and elected officials like Sheriff Tom Dart, the deal was made.

Sources said Stroger was willing to barter, but advisors close to him kept talking him out of it. That led to shouting matches and bruised egos on both sides. Finally, a breakthrough came Friday afternoon.

The swing vote to pass the budget came from Commissioner Larry Suffredin, who campaigned for state's attorney on a boast that he had "stood up to Todd Stroger's tax increases," and as of early Saturday, his Web site still quotes him as saying "at this point, I see no need for any increase in taxes."

But Suffredin's willingness to deal came after Stroger agreed to give up control of the county hospital system - a patronage dumping ground for decades' worth of politicians - to an outside panel of professionals through 2010.

The compromise proposal calls for 15 officials from the medical, civic and labor community to pick 20 nominees to a hospital governing board. From there, Stroger will pick nine, to be approved by the county board.

Suffredin says the new board will bring true independence and professionalism to the hospital system and limit patronage opportunities.

Suffredin, while admitting a sales tax may not be "the best economic policy," noted it's half of what Stroger wanted, and said the hospital deal is a good trade-off for a 1 percent sales tax hike.

The deal allows county courts, the jail, health clinics and hospitals, among other county government functions, to remain operating for another year.

Without a budget, county officials will have been prohibited from expending any funds, emergency and otherwise, for continued government operation – effectively shutting the county down. Stroger joined County Sheriff Tom Dart and State’s Attorney Dick Devine in filing a lawsuit Friday afternoon seeking emergency court intervention to preserve at least the operation of vital services, the release said.

“Today, this administration moves forward in addressing a chronic structural deficit while continuing to meet the needs of those who rely on us for essential services,” Stroger said.

Business leaders and others predicted immediate negative ramifications.

"Chicago now has the unfortunate notoriety of having the highest sales tax in the country, and our region will now be a more expensive place to visit, live, work and operate a business," said Jerry Roper, head of the Chicagoland Chamber of Commerce. "The people of our region should be outraged."

[dabado]

It's important to note that the article refers to SALES tax, and does not take into consideration state, federal and other misc. taxes. The sales tax is really a tax on the poor, as it effects everything people need to buy to survive, including some food.

[Abbey]

"And it will be enacted just in time for the Christmas shopping season."

It's convenient that this will be enacted AFTER the election. The impact of it won't be felt until after the election. Convenient. I'm just saying...

[Isabella]

Senator Barack Obama represents Illinois and is running for President of the United States.

Now is not the time to raise taxes!!! It's just going to make things more difficult in this difficult time.

[33bestfriends]

Originally Posted by Isabella

Now is not the time to raise taxes!!! It's just going to make things more difficult in this difficult time.

I couldn't disagree more. I'm proud of Obama, and am proud of his leadership regarding raising taxes. The government needs to raise taxes to pay off debt created by the republicans. Raising revenue is the only way to pay off that debt.

[Gorda]

Rich people making more than $75k/yr are the problem. Thankfully President Obama will increase their taxes and make things more fair. OBAMA '08 !!!

[Wii]

Originally Posted by Gorda

Rich people making more than $75k/yr are the problem. Thankfully President Obama will increase their taxes and make things more fair. OBAMA '08 !!!

I don't think 75k is alot of money. I have 4 kids, make $128,000 per year and am really struggling. I dont understand how anyone could think that 75,000 is alot of money?

[SheilaNoya]

Originally Posted by Wii

I have 4 kids, make $128,000 per year and am really struggling.

Theres the problem. You shouldnt be allowed to have more than one child. This world is overpopulated which is why we have record polution. You probably drive an suv and if so you are killing our planet by warming it up prematurely. Nextime you get horny think planed parenthood and abort abort abort.

[G W B]

Business leaders are furious!

A 1 percent sales tax increase is in effect today (Tuesday 7/1/08), hiking the sales tax in the city of Chicago to 10.25 percent. By comparison, the sales tax in Lake and Will counties is 7 percent, and in DuPage County, it's 7.25 percent.

A sales tax of 10.25 percent is also significantly higher than the sales tax in other major cities. The next highest rate in the country is in Memphis at 9.25 percent. New York, Los Angeles and Dallas all have a sales tax of less than 8.3 percent, Phoenix has a tax of 6.3 percent, and Denver's sales tax is only 3.6 percent.

The Cook County Board voted to raise the sales tax at the end of February, after a five-month stalemate on the 2008 budget. Board President Todd Stroger and his supporters ultimately prevailed, saying the tax hike was necessary to provide health care and other services.

The tax hike applies to everything but groceries, medicine, cars and boats. For larger purchases like furniture or appliances, the taxes can add up.

It will definitely be cheaper to shop in the suburbs. Buy a $500 TV in DuPage County where the taxes are 6.75 percent and you'll pay $534, in Chicago where the taxes are 9 percent, you'll pay $545 for that same television, and when taxes increase to 10.25 percent, you'll pay $551.

For that reason, businesses are concerned that consumers will leave Cook County to make purchases.

The Civic Federation fought the tax increase, and says it should be rescinded.

"The tax is unreasonable, it's too big of a tax, and it wasn't necessary for the county to maintain its services," said Civic Federation President Laurence Msall.

"It's a sales tax that [Cook County Board] President Stroger himself admitted is larger than what even would be needed by their budget estimates. So we think it is very unfortunate," Msall added. "We call on the County Board to reverse their decision."

Some Cook County taxpayers were equally displeased.

"That's ridiculous. That's too much. What they want us to do?" said Darryl Woods. "The tax is too high already – now they want to go up higher?"

"You have to think twice about what you're spending," added Barbara Fritz. "Ten percent is ridiculous."

Already happening at DuPage County gas stations close to the Cook County line, they are advertising that customers pay no Cook County taxes.

Some residents of Palatine have been so upset by the tax hike that they have even talked about seceding from the county.

Several Cook County commissioners voted against the sales tax increase. One of them, Tony Peraica, and other officials are holding a 12:30 p.m. protest Tuesday outside the Thompson Center.

The tax is estimated to bring in more than $440 million in new revenue.

[drudge]

Originally Posted by SheilaNoya

Nextime you get horny think planed parenthood and abort abort abort.

Heartless wench.