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Even with a big boost from the cash for clunkers automotive sales promotion, Cook County shoppers shied away from merchants & record high retail sales tax this past Spring. Suburban collar counties did a bit better.
Cook County Increases Sales Tax, Retail Sales Tank
chicagobusiness.com - 2 weeks ago - 113 views
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Disastrous consequences of sales tax hike are easily seen during my field visits with clients in Cook County northern & southern suburban retail stores.
The tax is $100 on a $1,000 personal computer purchase & $2,000 on a $20,000 new car purchase. All you have to do is drive across the Cook County line to save enough for a nice dinner for four with cocktails.
Did they really think that hiking up the sales tax in the city would help make more money anyway? Who wants to pay 10% to buy items, especially more expensive ones, when they can go to another county and save tens, hundreds and even thousands of dollars. It's ridiculous.
Economists learned long ago that tax cuts may stimulate demand & investment as with reduction in the capital gains tax. Increases of so-called "sin taxes" may be better explained by inelastic demand for tobacco & spirits than whether legislators disapprove of those who smoke cigarettes & drink cocktails.
Cook County might decide to lower the retail sales tax & actually record increased taxes paid by consumers as consumer spending recovers.
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