Cook County residents will no longer
have to pay the penny-per-ounce sweetened beverage tax starting Dec. 1.
On Oct. 11, the Cook County Board of Commissioners voted to repeal the county’s
infamous tax on soda and other sweetened drinks. Fifteen of the 17 commissioners
voted in favor of the repeal, providing enough support to thwart a possible veto
of the ordinance.
For months, commissioners were subject to relentless criticism from taxpayers
who overwhelmingly disapproved of the tax. It appears this tax was the tipping
point for residents who have had to shoulder of one of the highest tax burdens
in the country. From the nation’s highest wireless taxes to taxes on streaming
services such as Netflix and Spotify – not to mention a record-breaking property
tax increase and the highest sales taxes of any major city in the nation –
residents of Chicago and Cook County at large are tapped out. They have made
their voices heard.
Shortly after its implementation, one poll commissioned by the Illinois
Manufacturers’ Association found nearly 87 percent of Cook County residents
disapproved of the tax, and in the same poll 80 percent said they believed the
tax was being done strictly for money and not for public health. Cook County
Board President Toni Preckwinkle later admitted the county’s sweetened beverage
tax was always about increasing revenue.
“We chose as a revenue generator a sweetened beverage tax, which had been
enacted around the country, both for the revenue and because of the health
benefits,” she said according to the Chicago Sun-Times. “But first and foremost,
because of the revenue.”
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Commissioners proved in
November that they could replace revenue from the sweetened beverage
tax with cuts. The 2018 budget eliminated more than 1,000 vacant
positions and reduced staff to fill a $200 million budget gap. While
good news for taxpayers, this is ultimately a small victory as there
is significantly more work to do to fix Cook County.
More than 2,200 Cook
County workers receive annual pay over $100,000. For career county
workers – those who’ll work for 30-plus years – that means pension
benefits worth millions of dollars over the course of their
retirements.
Career Cook County workers who retired after 2013 with 30-plus years
of service receive an average starting pension of $58,000 a year,
meaning they’ll receive about $2 million in total benefits over the
course of their retirement.
But Cook County commissioners sought new revenues instead of
spending reforms.
Thankfully, taxpayers fought back to stop their efforts. And now
they should fight for the change needed to truly fix spending
problems within Cook County.
Cook County politicians should look to enact meaningful reforms such
as introducing a 401(k)-style alternative to failing pension funds,
addressing local spending and eliminating tax increment financing
districts.
Taxpayers should keep up the pressure on commissioners to adopt
these reforms. Otherwise, residents will continue to live under the
constant threat of increased taxes and fees.
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