I'm a few days late on this, but thought it would be worth discussing, given its impact on Illinois and our own local discussions about sales taxes.
Among the things Chicago wants to be known for, having the highest total sales taxes of any major U.S. city is probably not one of them.
But that's what it's getting after the Cook County Board voted Saturday to double the county sales tax to 1.75 percent. When added to the city's sales tax, the county' increase has the cumulative effect of setting a 10.25 percent sales tax on goods bought in Chicago.
The rates in New York and Los Angeles are below 8.5 percent. The next highest rate in the country is in Memphis, Tenn., at 9.25 percent.
And, they're increasing a bunch of other taxes and fees, too. I know it's easy to caricature this as typical of the most Democratic city in America, but is this good for the State of Illinois? Are these rates having any sort of impact on sales tax receipts in the City vs. Cook County or the Collar Counties?
(Hat tip: TaxProf)
There's a related article at Huffington Post: http://www.huffingtonpost.com/2008/03/04/chicago-sales-tax-hits-re_n_89751.html that links to another article about Chicago considering increased parking taxes.
I have been following a thread in another blog where the subject of dividing Illinois into 2 states has been proposed again recently.
As the dominant population center, Chicago elects the Governor and determines the fate of the Illinois presidential electoral votes. Some southern Illinois counties have seceded from the state of Illinois in the past (Williamson county, for example) although the secession was temporary.
It has been pointed out to me that in some countries the large urban centers became so dominant in regional politics that the only way to preserve the interests of the province or region was to separate the urban area into a separate province and thus return some self-determination and autonomy to the rest of the area.
Why cant this work in Illinois?
Make Chicago/Cook County a City-State and give it Autonomy, 2 Senators, and Electoral Votes. Liberate the rest of the State of Illinois, giving it back its capitol (Springfield not Chicago), giving back its 2 Senators, and giving back life and liberty to the rest of the state. Peoria, Moline, and Rockford, Bloomington, C-U,the Marion-Carbondale Rt13 corridor, and the Collinsville-Edwardsville-E. StL area become important population centers and agriculture gets more attention. Everyone gets something they want and everyone is happier. - AL
"Why cant this work in Illinois?"
Because Chicago is, despite our downstate regionalistic dreams to the contrary, a net revenue producer for the rest of the state. Chicago subsidizes us, not the other way around.
Without Chicago/Cook County, the rest of Illinois (i.e., the rest of us) is Arkansas.
With this kind of thinking, pretty soon there will be more senators than representatives. Instead, take Cook and the collar counties through northern Indiana and call it; what? we need a name. Southern Illinois and southern Indiana will be another state. Again, no name comes to mind. The dems get an automatic two senators and we get an automatic two Republicans. Net result; 100 senators. How about North and South Illiana.
Plus, Blago won't have to pretend to live in Springfield.
John
Looks like it is one pro and one con so far.
I think John offers a possible solution. Getting Indiana to join up with Illinois is a challenge though.
Well there is the 50 state argument and how to put the stars on the flag and all that nonsense too.
Mr. Pundit, I am not sure what you are wanting money from Chicago to do? Of course Chicago would have to pay out-of-state tuition to our universities and we will have to charge them significantly if we continue to provide holding pens for the criminals and social culls that Chicago generates. Roads can be paid for by tolls if necessary. Chicagoans would want to use our roads.
And the last time that I visited Arkansas, things didn't look so bad. Did you intend that appellation as a compliment on their lifestyle and business growth or was it meant as a slur?
"Mr. Pundit, I am not sure what you are wanting money from Chicago to do?"
Pay for our roads and schools and virtually every other "service" we get from the state, and a good portion of that which we get from the Feds, too.
Are you under the mistaken impression that Chicago gets more money from us than we get from them?
Among the things Chicago wants to be known for, having the highest total sales taxes of any major U.S. city is probably not one of them. Actually, I don't think the Chicago politicians care about that. If they did, they would avoid the situation, as every other city has done. On the other hand, someone has to be the most taxed.
JBramfeld suggests: "Instead, take Cook and the collar counties through northern Indiana and call it; what? we need a name."
Assenisipia. (link pops)
Hey, it was good enough for Jefferson... But in all seriousness, yes, Chicago generates income for the rest of the state.
Illinois needs to remain whole 'as is'. Its not a political problem or a downstate/Chicago problem, it is a corruption problem. Both major political parties are infected and have been for most of a century. Its a long standing problem getting slight attention from the federal government, litterly no attention at the state, city and local level and lots of voter tolerance.
This is Illinois, Lincoln, the Cubs ok Sox’s, the Museums Science and Industry, the whole downtown, the Serious Tower as my 8 year old son called it. The stupid politicians that make us question things like this.
When you see a student talk to them for five seconds most of them are not from here and look at this place as a flat foreign land, full of Corn and beans tell them about how you really like it, maybe that it doesn't smell.
No this is one state. Really Serious Tower.
No wonder Michelle Obama is finding it so hard to get by on 340K per year!
Palatine is talking about seceding, and other towns on the county border aren't too happy either:
http://www.chicagotribune.com/news/local/chi-tax-protest_both_05mar05,0,2753998.story
amazing - a municipality worried that it's sales tax rate might push business away.
The Duds? I mean, the Cubs? Illinois? Really?