* The response to this proposal has been swift and loud…
Cook County Board President Todd Stroger called for a special meeting of the County Board Tuesday to consider a sales tax increase that would push the sales tax in Chicago to 11 percent — the highest in the country.
The County Board will meet October 1st — this coming Monday — immediately after a Finance Committee public hearing on a proposal to raise the Cook County’s portion of the sales tax by two percent.
Stroger’s office will not say whether he supports the increase, but has said some tax increase is likely. He has said he wants to find out what taxes board members will support before he releases his budget proposal in October.
Various media reports have put Cook County’s defict at between $300 million and $750 million (Commissioner Larry Suffredin’s guesstimate).
* More background…
Chicago shoppers now pay 9 percent in sales tax, with 5 percent going to the state, 2.25 percent going to the city, 1 percent going to the Regional Transportation Authority and 0.75 percent to Cook County. Additionally, downtown diners pay a 1 percent food-and-beverage tax levied by the agency that runs McCormick Place and Navy Pier. If the county raised its sales tax by 2 percentage points, those diners would see a total 12 percent tax on their tabs.
The County Board has not raised its portion of the sales tax since it was first approved in 1992.
Mayor Daley raised the city’s sales tax a couple of years ago and the General Assembly is now debating legislation to raise it again by 0.25 percent in the city and Cook County to help bail out public transit.
* But it seems doubtful that Stroger will get his full 2 point hike, or that he even wants it. The tax would raise a billion dollars and the deficit isn’t that high (or even a third that high, depending whose figures you use)…
There’s still general disbelief Stroger could find a majority on the board willing to go along with such a huge tax increase. But now commissioners are starting to believe that a smaller sales tax hike could emerge from Monday’s meeting, sort of a bait-and-switch “compromise.”
* And…
By beating back a Draconian 2-point tax increase, Stroger, or one of his loyal commissioners, might be able to ride in on a white horse and “rein in” the tax increase to a “mere” 0.25 percentage point increase or 0.5 point increase — appearing fiscally responsible while still giving the county some much-needed revenue, some commissioners speculate.
* The vote isn’t shaping up too well for the full two-point hike, either…
Three Democrats — Suffredin, Claypool and Quigley — have announced their opposition to tax hike, and the five Republicans on the board are expected to follow suit. That means that every other board member would have to vote for it.
* But not all of the remaining commissioners are on board…
Commissioner Roberto Maldonado (D-Chicago), a possible swing vote on the 17-member board, said Monday he is leaning strongly against a sales tax increase. […]
Maldonado said he would be more in favor of utility taxes that have been introduced by Commissioner William Beavers (D-Chicago), if senior citizens were exempted.
* Regardless, editorial writers are all in a huff…
A government whose house is not in order hasn’t earned the public’s trust. And without that trust, that government can’t ask taxpayers for more money.
* This idea looks a whole lot like Gov. Blagojevich’s outrageously huge gross receipts tax. Blagojevich’s big mistake was not coming back with a smaller, more “acceptable” tax hike. I’m guessing Stroger will do what Blagojevich did not, probably combined down the road with more cuts.