Chicago, Chicago, That Taxin’ Town

Congratulations, Chicago! You now have the highest sales tax rate in the country at 10.25%. Chicago earned that distinction when Cook County doubled its county sales tax to 1.75%.

Who will benefit from this tax increase? Cook County passed the tax increase to balance its budget. Of course, the idea of cutting bureaucracy didn’t get considered….

The actual beneficiaries will be stores and malls located just outside of Chicago and/or Cook County. Lake County, Indiana (just over the state line and Chicago city limits) has a sales tax of 6%. The sales tax in Joliet (county seat of Will County, to the southwest of Chicago) is 7.75%. Wheaton, just to the west of Chicago, has a sales tax rate of 7.25%.

Who are the losers? Those who aren’t mobile and are stuck paying the higher tax rates. Chicago businesses. Cook County businesses (the tax increase impacts the entire county). And the residents of a great American city stuck with politicians who know tax and spend all too well.

Hat Tip: Tax Prof Blog

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