Politics

Bid To Repeal Cook County Sales Tax Hike Fails

CHICAGO (CBS) ― The county board is still feeling the heat, over the new sales tax increase. But CBS 2 Political Editor Mike Flannery reports that on Tuesday, they shot down a measure that would have repealed the tax.

Cook County Commissioner Tony Peraica (R-16th) brought a group of small business owners and others unhappy with the 1 percent sales tax hike to a news conference Tuesday at the County Building. "We need to provide tax relief to the taxpayers of Cook County, who can't take it any more," Peraica said.

In the County Board room a few minutes later, Peraica's proposal to repeal the tax provoked another another storm of debate.

Peraica (R-16th) introduced the resolution Tuesday. Almost immediately after, Commissioner William Beavers (D-4th) called for a vote to be held without delay.

Earlier, Peraica had suggested a motion to defer, but failed. It is possible that another piece of legislation could be introduced to overturn the sales tax hike.

Cook County Commissioner Larry Suffredin (D-13th) was one of a number of commissioners who complained that they were cut off while explaining their vote.

Perhaps the strangest moment was supplied by Commissioner Debra Sims (D-5th). She supports not only the new 1 percent sales tax increase, but favors additional taxes.

She surprised tax critics by agreeing with them that high taxes are harming Cook County's economy.

"As long as we continue to say it's cheaper to buy in Indiana (and) Will and Lake (Counties), then they will continue to keep their taxes down. We're helping their economy. We're not helping our own," Sims said.

The 1 percent sales tax increase took effect July 1 amid protest from Cook County business-owners and residents. The increase also gave Chicago the dubious distinction of having the highest sales tax in the nation, at 10.25 percent.

A sales tax of 10.25 percent is also significantly higher than the sales tax in other major cities. New York, Los Angeles and Dallas all have a sales tax of less than 8.3 percent, Phoenix has a tax of 6.3 percent, and Denver's sales tax is only 3.6 percent. Birmingham, Ala., earlier this year passed a sales tax hike--to 10 percent.

The Cook County Board voted to raise the sales tax at the end of February, after a five-month stalemate on the 2008 budget. Board President Todd Stroger and his supporters ultimately prevailed, saying the tax hike was necessary to provide health care and other services.

The tax hike applies to everything but groceries, medicine, cars and boats.

The Civic Federation also has said the tax should be rescinded.

"The tax is unreasonable, it's too big of a tax, and it wasn't necessary for the county to maintain its services," said Civic Federation President Laurence Msall.

"It's a sales tax that [Cook County Board] President Stroger himself admitted is larger than what even would be needed by their budget estimates. So we think it is very unfortunate," Msall added. "We call on the County Board to reverse their decision."

A spokesman for Stroger said that the sales tax increase was badly needed, especially for county hospitals, which have been treating more people without insurance than before.

But critics said the increased revenue is far more than what was needed to balance the county budget.

In the end, Peraica and his allies failed to repeal the sales tax increase. Stroger won the showdown, 10-7, and defended his stormy tenure.

"Until this place falls apart, then I'll step up and say 'I screwed that up.' Until then, I'm doing a damn good job," Stroger said.

Stroger and his allies appear to be dug in on the sales tax increase at least through the end of 2008. The next board meeting is set for Sept. 3, when preparations for the 2009 budget are expected to begin, including some hearings.

Commissioner John Daley (D-11th), a Stroger ally, said, "The sales tax debate is going to continue. It's not over by any means."

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