The Cook County Board approved a new penny-per-ounce tax on sugary and
artificially sweetened beverages on Nov. 10. The board was in an 8-8 stalemate
until Board President Toni Preckwinkle cast a tie-breaking vote in favor of the
measure, claiming that it would raise much-needed revenue to avoid critical cuts
to criminal justice and health care systems, the Chicago Tribune reported.
The new tax is expected to collect $224 million a year and raise additional tax
dollars for the proposed $4.9 billion budget for fiscal year 2017. The tax will
go into effect in July 2017.
In addition to soft drinks, other beverages that fall under the net of this tax
include lemonade, sports drinks, sweet tea, fruit juices and any other beverage
with sugar or artificial sweeteners such as aspartame, a key ingredient in many
low-calorie and diet drinks.
Opponents of the measure included the American Beverage Association and Illinois
Retail Markets Association, who claimed it was a regressive tax that would hit
poorest families hardest, according to the Chicago Tribune. Advocates of the tax
include former New York Mayor Michael Bloomberg, famous for his attempt to ban
Big Gulps in New York City.
This tax on sugary and artificially sweetened beverages is simply the latest
cash grab in a long line of tax hikes by Cook County. Last November, the Cook
County Board under Preckwinkle’s leadership approved and passed a sales tax
hike, an amusement tax, an ammunition tax, a hotel tax, an e-cigarette liquid
tax and a $20 increase in fees per lawsuit filed.
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Then, like now, Preckwinkle claimed that the need to raise
revenue through new taxes was absolutely essential for critical
services and did not discount the possibility of more taxes for Cook
County residents for the 2017 budget.
The new tax on sugary and artificially sweetened beverages, like the
whole slew of new taxes and tax hikes last November, is regressive.
The people hurt most are middle- and working-class Cook County
residents who already face some of the highest property and sales
taxes in the nation. One Gallup study even showed that 45 percent of
people making under $30,000 a year consume regular soda, as opposed
to only 20 percent of those making over $75,000 a year. The study
also found that people making less money are more likely to drink
soda.
Instead of pushing regressive taxes onto already cash-strapped Cook
County residents, the Cook County Board should figure out real
solutions to the county’s fiscal woes instead of taking more money
from the people who can least afford it.
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