Thursday, October 25, 2007

Helpful: Sales Taxes on services

In Illinois, sales taxes only apply to the sale of goods, not services. So you pay 9% on a Big Mac, but 0% on your personal trainer, stock broker, or lawyer.

The Governor tried to address this by rolling out a General Receipts Tax, which would get at some of those services, but he is so inept and politically bankrupt right now that service industries crushed him.

Meanwhile, check this out:
Taking a quick look at census business data:

Top 6 sectors for Cook County (by % of total payroll spending)
15% Finance
13% Professional, Scientific, Tech
11% Health Care
10% Manufacturing
7% Wholesale Trade
6% Management of companies

That means that #1, #2, #3 and #6 of our top sectors (making up 45% of our economy) pay little to no sales tax. Include them, but reduce the rate, and you can get it passed.

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