WOW! Double Digits! The IA's are really getting expensive to feed and clothe!


Taxes In Chicago Now 10.25 Percent, Highest In Country

CHICAGO (CBS) ― Sales taxes in Chicago are now the highest in the nation, and business leaders are furious.

As CBS 2's Joanie Lum reports, a 1 percent sales tax increase is in effect Tuesday, 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 under 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The Civic Federation fought the tax increase, and says it should be rescinded.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 to 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.


http://cbs2chicago.com/local/cook.count ... 60949.html