Politics

CBS 2's Mike Flannery and Dorothy Tucker contributed to this report.
CHICAGO (CBS) ― The Cook County Board has delayed a vote to increase the county sales tax, which, if enacted, would become the highest in the country.

A group of Cook County Commissioners tried Monday to raise the sales tax by two full percentage points, but could not find enough votes.

As CBS 2 Political Editor Mike Flannery reports, the debate over the $1 billion-a-year sales tax increase lasted all day long, finally erupting into angry language.

County Board President Todd Stroger and his allies appeared to be one vote short of the nine they needed to enact the sales tax increase.

Stroger said the hike is necessary to save the county health system and fund necessary services. He has called for a 2 percent hike in the sales tax, which would bring the sales tax in the city of Chicago to a nation leading 11 percent.

Stroger's office released figures indicating the total budget deficit is $307 million. This breaks down to $150 million in reduced revenue and $157 million in increased expenses. A total of 48 percent of those expenses are employee-related costs.

Stroger has won support for the tax from hospital staffers, as well as clergy members who said it was a tax the people of Cook County can handle.

The congregation at Sweet Holy Spirit Church heard several clergy members say a two-percent sales tax hike will save the health care system and close the county's $307 million deficit.

If the tax hike is passed, it will affect purchases of hard goods, such as clothing, appliances and electronics. The hike would not affect food, drugs and medical appliances, for which sales tax is frozen at 1 percent through a state exemption.

Liquor and tobacco products already have separate taxes from various governing bodies that exceed 11 percent.

"We call it a leisure tax, not a hardship tax," said Fernwood United Methodist Church Rev. Al Sampson said Sunday.

Opponents disagree.

"This is not a leisure tax," said Cook County Commissioner Tony Peraica (R-16th). "It's punishing, and will affect the poorest members of the county the most."

Stroger said officials needed to resign themselves to the need for new revenue.

"Every once in a while government needs new revenue," Stroger said. "We need to face facts."

County Commissioner Roberto Maldonado (D-8th) says Stroger's chief of staff made threats last week. The threat: if Maldonado doesn't vote for the tax increase, Commissioner Bill Beavers (D-4th) will introduce legislation to revoke the law that declares Cook County a sanctuary for immigrants. Revoking that law will undo Madonado's latest achievements.

"If their position is to use the Latino community to get me to support things they want me to support, I will work against him – big time," Maldonado said.

Stroger's reply to Maldonado's statement: "What he needs to do is talk to me and we'll talk about what's important to the county and how we're going to fix it."

After the sales tax increase failed, Peraica moved to impose a moratorium on all tax increases by the county.

"This is the time to draw the line in the sand and say, 'Enough is enough,'" Peraica said.

If the county board does approve the sales tax increase by Dec. 31, 2007, it would go into effect on April 1, 2008. If they wait until next year, it will be July 1 at the earliest.

The bottom line for taxpayers and retailers is this proposal is not dead; the county board is going to reconvene on Oct. 16 to consider it and other revenue-raising measures.

As CBS 2's Dorothy Tucker reports, from clothing to appliances to electronics, most shoppers say adding another 2 percent sales tax to the price tag will sting.

"The more money I have to pay for taxes, it doesn't help me," said shopper Keith Dent. "I mean it may be good for the city for me, it really hurts."

"We can't afford those high taxes," said shopper Regina Benton. "You got your house, you got your car. We can't afford it. We really can't.

Whether you can afford it or not, Stroger plans to keep fighting to raise taxes.

"For local consumers who are thinking about a big ticket item, they might be drawn to the collar counties," said Mary Ann McGrath of Loyola University.

A 65-inch Toshiba HD television costs $2,199 in Chicago; with an 11 percent sales tax, that jumps to $2,440. et's take that hd tv you've been eyeing. Drive west to Oakbrook Center mall or north to Gurnee Mills, where the sales tax is only 7 percent and you'll pay $2,352 – a savings of $88. Drive south across the border to Indiana, where the sales tax is 6 percent and you'll pay $2,330, and save $110.

McGrath says that 2 percent is not enough to cause shoppers to leave the city for items like clothing or small appliances, but any tax increase makes us stop and think before we buy, and that could hurt small businesses.

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