In these tough times economically, cities and counties across the U.S. are searching for new ways to bridge revenue gaps that often run into the millions of dollars.
And how do County Officials and Mayors across the country deal with the revenue shortfall?
Likely, you guessed it right away! Typically . . . THEY INCREASE TAXES IN THEIR JURISDICTIONS!
That happened in Cook County IL - the county that includes the City of Chicago. Last year, the Cook County Board of Commissioners voted overwhelmingly to increase the Cook County General Sales Tax to as high as 10.25% within Chicago. That's the highest stipend of any big city across the country.
County officials predicted complacent acceptance. Resignation. No drop off in tax revenues - in fact, a hoped for revenue INCREASE, county wide.
But they didn't get that!
Instead, there was talk of the perimeter suburbs of Chicago of seceding from Cook County. Or, in this tough economy, seeking out merchants just over the Cook County line, in neighboring Indiana or Wisconsin, or buying more over the Internet, in hopes of minimizing our already-high sales tax bite.
And this week, 12 of the 17 members of the Cook County Board apparently had enough. As reported by Dan P. Blake in The Chicago Tribune, the commissioners voted to scale back the June, 2008 10.25% tax enactment to 9.75%.
The matter is not settled, however!
Embattled Cook County Board President Todd Stroger, already under a county wide microscope for alleged inappropriate hiring and wasteful spending, promises to veto the tax rollback. According to County Law, he has six days to do so - and likely will!
And although Cook County Statutes make it difficult for the Board to overturn President Stroger's veto - Board Rules call for an 80% approval to overturn a Board President veto - a preliminary count indicates the board will have the needed 14 of 17 votes required to get the tax brought down.
Stroger supporters fear Cook County could lose up to $140 Million in revenue if the Cook County Sales Tax is reduced from current levels. Cook County Health Department spokespeople predict $85 Million in cuts if the tax is dropped.
But most agree the current county budget does contain some "fat" needing to be trimmed - and all will be well if the Cook County Sales Tax is rolled back.
And President Stroger has another looming problem. The President is expected to face several pro-lower-tax Democratic challengers when he runs for re-election in 2010.
See our post this evening via BlogChicagoHomes.com.
DEAN & DEAN'S TEAM CHICAGO
Only government officials see a shorfall and raise the revenue.
Can you picture a worker walking into their employers office and saying, "My mortgage payment went up and I am therefore raising my income to cover the increase".
HA!
I'm with Lenn on this one. Pretty funny about the worker story. lol
Dean, the government will get their money one way or another!
Budget. You have to do it, so do I. When real estate is down, so are the nights I eat out. I can almost guarantee that the $140 million dollar short fall, or at least a good portion of it, could be made up with budgeting.
It may be painful. Some programs may disappear, some my be cut. Here in Wichita KS they were thinking about firing half the maintenance staff and hiring it out to Private contractors. If that turns out to be the case the work will actually get done and the city will save tons of money.
It's great that you follow this and it is being repeated all over the US. When companies don't have demand they lay off employees, and when things are great they hire and government has to do the same. Raising taxes like this only means that less incoime will be spent in the private sector. It is a tough balancing act, but one where both lesser government propoents and more public servic people have to compromise.
Hi Dean -- We have high sales taxes around Cleveland, as well as higher property taxes than average, and it's a real inhibitor to business expansion, the death tax causes retired people to leave, etc. Politicians need to get much smarter about the economy and the impact their decisions have.