Chicago Has the Highest Sales Tax in the United States: 10.25%

Chicago's: 10.25% sales tax - Recently, I bought a few simple household items at the local Walgreens on Milwaukee and Armitage. I purchased laundry detergent, shampoo, some socks, a box of cereal, some masking tape and some wood glue. The price rang up as $30.19.

The clerk immediately said "That'll be thirty three twenty eight."

I looked up at the screen on the cash register and realized that I was just hit with our ten-percent sales tax. I crumpled up a twenty and a five and put them on the counter, disgusted. This is horrible! This is an abomination! Why am I paying these extra dollars?

I had heard rumors about people swarming to the local Best Buy and Circuit City to purchase more expensive items the day before the Sales Tax passed. Imagine having to pay an extra hundred dollars for that LCD television. Imagine having to pay an extra two-hundred dollars for that laptop. I shudder to think about purchasing a new car.

So, I have to ask why. Why does Chicago have the highest Sales Tax in the United States? Where is the money going?

The answer lies in the structure of funding of the public agencies in Chicago and Cook County. Cook County has a budget deficit of $234 Million (as of 2008). To stay in business, the County must increase revenue and reduce costs.

As the influx of cash from the Sales Tax comes in, the County can continue to provide the same services as it usually does: municipal works such as hospitals and schools, and jobs for people who live in the area. That's why they (County Board President Todd Stroger and the Board of Representatives) did that (Highest Sales Tax in the Nation).

Many people in Chicago blame poor leadership on the current budget situation in Cook County - it's a matter of service provided in Healthcare, Corrections, and many municipal services that are immediately necessary to the public. However, even with Hospital and Clinic closures, job cuts and budget crunches, the County still has a 10.25 percent sales tax.

It seems as if people who can afford to make large purchases will travel outside Cook County to make those purchases. In my estimation, this means that the businesses outside of the County will generate more revenue while the businesses inside the borders of the County will receive less sales. Why pay an extra hundred dollars when you can drive an extra mile or two and save that money? It makes no sense.

Furthermore, the people who have to make purchases in the county will bear the majority of the brunt of the sales tax increase - a person making a modest living, lets say $25,000, might spend $10,000 in one year on disposable items. That means roughly $1,000 is lost to the system. That modest person probably could not afford to lose $1,000, let alone save it.

Ah, but doesn't that money go to public services and the infrastructure of our society? Well, sure. But why is Chicago more expensive that both Los Angeles and New York?

It seems to me as if the entire County system is a strange one indeed. Nearly every day, Chicagoans are confronted with negative information regarding the County. For instance, there's the negative rating in Crain's regarding the financing of Cook County. http://www.chicagobusiness.com/cgi-bin/news.pl?id=30057

Secondly, there's the issue of both democrats and republicans against Todd Stroger. To paraphrase from that same Crain's article, both Mike Quigley (Democrat) and Tony Peraica (Republican) have grief with the Stroger Administration.

Mike Quigley said "This administration just doesn't get it, they're going to have to restructure and cut back."

Tony Peraica said "...revenues that Mr. Stroger anticipated would be generated by this tax increase will not be generated. People are going to shop somewhere else."

Personally, like many people, I feel as if I shouldn't have to bother with such ugly political necessities. I'd rather just ignore it and wait until I have to utilize such services that the County provides. If they're provided at all.

I must admit my cynicism regarding these things; they don't call it the Windy City because of the Wind; they call it the Windy City because of the politics.

Who do we have to blame for this situation? Is there anyone who is absolutely correct on these issues? What about people who are forced to use County services because they have no other alternative? I'm left with more questions than answers, and less energy to confront those questions.