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Increase pushes Chicago's sales tax to highest in the US
Amanda Wowk
Issue date: 7/14/08 Section: News
On July 1st, 2008, sales tax in Chicago officially became the highest in the nation, at a rate of 10.25%. Todd Stroger, President of the Cook County Board, pushed for the one percent increase to help cover funding in his budget. Now, consumers buying any goods in the city limits will pay slightly more than they did last month. Other major cities across the country have sales taxes that are significantly lower than in Chicago. For example, Milwaukee, Wisconsin has a sales tax of 5.6%, while Jacksonville, Florida has a sales tax of seven percent. The closest equivalent to Chicago is found in Birmingham, Alabama, where a new sales tax of 10% was recently approved. Many Chicago residents are concerned over the tax increase in the city, and still others are seeking to purchase consumer goods outside of the city or even Cook County, where the sales tax varies from nine percent to ten percent in various suburbs.
"I'm upset," said Aminah Bridgeman, a sophomore Biology student at UIC. "The tax was already so high before. We have some of the highest taxes in the country. In Will County, where I live, taxes aren't so high. Everything's going up in price. It's ridiculous."
The sales tax increase has come only three months after a Regional Transportation Authority (RTA) increase of 0.25%, with revenues collected funding the Chicago Transit Authority (CTA), Metra, and Pace. With news of the tax increases comes more worries about the sluggish economy, the job market, and the decline in the housing market. Some feel that this new increase in sales tax is too much for Chicagoans.
"I feel this is an unnecessary addition to the burdens Chicagoans already possess," commented Xachary Lightner, a freshmen UIC student. "It's getting far too expensive to live in the city of Chicago."
In addition to the new sales tax increases, the City of Chicago also levies a 13.25% tax on soft drinks, a five-cent tax on bottled water, and an additional one-percent tax, on top of the sales tax, on food and beverages purchased downtown. The city is also considering an increase on the taxes already levied on alcohol purchased in the city limits.
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"I'm upset," said Aminah Bridgeman, a sophomore Biology student at UIC. "The tax was already so high before. We have some of the highest taxes in the country. In Will County, where I live, taxes aren't so high. Everything's going up in price. It's ridiculous."
The sales tax increase has come only three months after a Regional Transportation Authority (RTA) increase of 0.25%, with revenues collected funding the Chicago Transit Authority (CTA), Metra, and Pace. With news of the tax increases comes more worries about the sluggish economy, the job market, and the decline in the housing market. Some feel that this new increase in sales tax is too much for Chicagoans.
"I feel this is an unnecessary addition to the burdens Chicagoans already possess," commented Xachary Lightner, a freshmen UIC student. "It's getting far too expensive to live in the city of Chicago."
In addition to the new sales tax increases, the City of Chicago also levies a 13.25% tax on soft drinks, a five-cent tax on bottled water, and an additional one-percent tax, on top of the sales tax, on food and beverages purchased downtown. The city is also considering an increase on the taxes already levied on alcohol purchased in the city limits.
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