Peraica: Today’s Taxing (and Troubling) News‏

From the office of Cook County Commissioner Tony Peraica….

There were two tidbits in today’s headlines that further support my push to fully repeal the Stroger sales tax hike in Cook County.

First, despite rising taxes and fees, tax collections are actually down in the state (again). As the Champaign News-Gazette reports, overall state tax collections are down 9.5% in July.

The reason for this decline? Simple: people are out of work. When they are out of work, their incomes drop (obviously). That leads to a drop in income tax revenues. They also consume less, which leads to a drop in sales taxes. It is for that reason that increasing the income tax and keeping sales taxes high will only further decimate our economy.

If government takes more of the people’s money, it will only cause them to suffer more and spend less. For those individuals who are small business owners, that will also affect job creation.

Pat Quinn and Todd Stroger are wrong: we need less, not more, taxes.

That coincides with another story today that shows that “Chicago is the worst tax city for travelers.” USA Today reports on a new study by the National Business Travel Association:

The study looked at the 50 U.S. cities with the most air passengers. It found that a typical business traveler pays $101.27 in taxes on average for hotel, rental car and meals during a three-day, two-night stay in Chicago— more than in any other city.

So, in other words, our local politicians are doing their best to repel new visitors, tourists and conventioneers from our city. Once again, that won’t result in more tax revenue — it will result in further economic harm that will put our local governments deeper in debt.

Not smart. Not smart at all.

I was happy to lead the charge to rollback a portion of the Stroger sales tax hike. Now is the time to fully repeal it to help get our local economy back on track.

Tony Peraica
Cook County Commissioner

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