Chicago Strikes Again
Starting next year, Chicago will have the highest sales tax in the country, with state, county, and city taxes adding up to 10.25%.
1% amounts to actual money if you’re a Cook County resident who wants to buy, say, a car.
The increase will take effect on January 1, and raises the county’s sales tax levy from 0.75% to 1.75%.
The Driving Force Behind the Tax Hike
It’s Cook County, which includes Chicago, that’s behind the tax hike.
Opposition from Retail Sector
- Local retailers
- Area Chamber of Commerce
These representatives argued against the increase, fearing that shoppers will simply travel outside the county to make purchases.
Support from Public Sector Stakeholders
Support for the tax increase came from:
- Pastors
- Health care workers
- County employees
- Union representatives
They emphasized that the revenue is intended to help the county deal with current and future county retiree pension costs.
Contingency Proposal
One commissioner proposed that the tax increase be rescinded if possible changes to county employee pensions go into effect.
Mansoor Ansari J.D., LL.M. (TAX)