 Effective Jan. 1, 20 Illinois cities and local governments increased local sales
taxes, according to the Illinois Department of Revenue.
The majority of the sales tax hikes were enacted in the various municipalities’
business districts. However, the city of Danville, located in Vermillion County,
is raising taxes for the entire city. Listed as a “home-rule” sales tax
increase, the new tax hike will go into effect on nearly every purchase made in
Danville. This increase brings the combined sales tax rate to 9.25 percent up
from 8.75 percent.
Local governments’ New Year’s cash grab is just the latest in a series of tax
hikes that have left many Illinois residents feeling as though their pockets
have been picked. Like property taxes, sales taxes are regressive and hit
middle-and working-class families the hardest. Illinois has the highest property
taxes in the nation and the highest sales tax in the Midwest. Chicago has the
highest sales tax of any city in the country. When income, sales, property and
other taxes are accounted for, Illinois’ combined tax burden puts the Prairie
State at the fifth highest in the nation.
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 However, it never seems to be enough. Illinoisans are forced to
continue paying more in local taxes to prop up Illinois’ 7,000 units
of local government – the most in the nation – and the bureaucracies
that run them.
And taxes at the local level aren’t the only government cost
burdening Illinoisans. The state continues to spend more and more
each year.
Despite the fact the state is expecting to take in more than $33
billion in 2017, Illinois is on course to spend $5 billion more than
it will take in. From 2003 to 2016, Illinois taxpayers shelled out
$70 billion more than if revenues had simply grown with inflation
and population trends.
Middle-and working-class Illinoisans should not be forced to pay for
the financial bungling of local and state government. Rather than
raise taxes that will hurt already cash-strapped residents, these 20
municipalities should look for ways to fix their budgetary issues
without going back to taxpayers.
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