Super Tax Me

In the wake of the current economic state, Cook County's sales tax is something that is literally making things worse. A common low-income family in the nation ends up spending a big percentage single handedly on sales taxes upon purchasing any necessity of life.

"Sales tax" is a tax imposed by the State of Illinois and some units of local government when merchandise is sold. Generally, the tax is a percentage of the selling price. Retailers (and some people who are in the service industry) collect sales tax from their customers.

According to the Illinois Department of Revenue's website, the state has a six percent base tax rate, while Cook County's sales tax is 10.25 percent (on non-perishable goods) and 2 percent (on drugs, medicine and qualifying food items). This rate is clearly high, and, talking only of necessities such as medicine, food, garments and utility bills are the least you would spend money on and subsequently paying tax rate on. A $100 telephone bill has $10- $15 of tax imposed on it. Even a $0.25 bubble gum pack has $0.75 tax on it. These statistics made Chicago highest sales tax generating city of the U.S. The Department of Revenue also collects a three percent Chicago Soft Drink Tax plus other additional sales taxes on items such as fountain drinks, bottled water, liquor, and cigarettes.If only upper class could stop wasting money on luxuries, things would be much better, as one percent MPEA (Metropolitan Pier and Exposition Authority) tax levied on downtown food and beverages are obviously benefiting upper class sector. The tax rate may also be higher in some areas because some local jurisdictions are allowed to impose their own taxes in the state.

Illinois residents also need to pay use tax- a tax imposed on any consumption of commodity bought from an out-of-state retailer who charges no Illinois Sales Tax or charges sales tax at a rate lower than the Illinois rate (such as purchases through out-of-state home shopping television and computer network services that do not charge Illinois Sales Tax), and any specific purchase would normally be subject to sales tax if bought from a retailer in Illinois. In addition, any purchase intended for use or consumption in Illinois from an Illinois retailer and if consumer does not pay tax to the retailer, he owes use tax to the department. The Illinois Use Tax rate is 6.25 percent on purchases of general merchandise, including automobiles and other items that must be titled or registered. The use tax rate is one percent on purchases of qualifying food, drugs, and medical appliances. Use tax differs from sales tax in only one aspect as a retailer or service person collects the sales tax, but the person who uses or consumes the property because tax was not collected when the merchandise was sold pays use tax directly to the Illinois Department of Revenue.

Let's make things simple. Just as a person needs money to survive and incurs resulting expenses to pay, there is no exception for a country. It's ironic that the economy is still not better off after imposition of such a higher tax rate. An average consumer is paying a tenth quarter of tax on every single commodity he buys and still lives in a misery. The government, on the other hand, needs to make money by any means- imposition of a higher tax rate is one of the options. Soon we're going to be taxed for breathing, too.