Cook County proposed penny-an-ounce tax on sweetened drinks

This sounds like a good idea in theory in that it will reduce drinking sugary drinks.. But it seems way to high on % basis when you think about a 2 liter pop is on sale for $0.99 on any given week and charging $0.68 tax on that 2 liter pop seems like price gauging mafia style @ 60%+ tax rate. This looks to be worse than the cigarette tax rate in Illinois on % basis.

Cook County Board President Toni Preckwinkle on Thursday will propose a penny-an-ounce tax on sweetened beverages including pop, lemonade and sports drinks to help close a 2017 budget shortfall, a move that comes just 15 months after she pushed through a penny-on-the-dollar sales tax increase, commissioners said.

The beverage tax would boost the cost of pop and the like by 72 cents for a six pack of soda or 68 cents for a two-liter bottle. The tax also would be imposed on fountain drinks. And it would be applied to drinks with sugar and artificial sweeteners, commissioners said. In its first year, it would raise an estimated $74.6 million.

http://www.chicagotribune.com/news/loca ... story.html

That's pretty much the point. There's a lot of hidden "cost" in a 99-cent bottle of sugar water. The idea of the tax is to make you think twice before buying. Now I'm not necessarily in favor of having the County dictate food choices but I do agree that these sugary drinks are a public health nuisance.

spinynorman99 wrote:That's pretty much the point. There's a lot of hidden "cost" in a 99-cent bottle of sugar water. The idea of the tax is to make you think twice before buying. Now I'm not necessarily in favor of having the County dictate food choices but I do agree that these sugary drinks are a public health nuisance.

Than the goverment should tax potato chips, cakes, donuts, brownies as well on the same % basis if the theory is food you eat is a 'health nuisance'.

spinynorman99 wrote:That's pretty much the point. There's a lot of hidden "cost" in a 99-cent bottle of sugar water. The idea of the tax is to make you think twice before buying. Now I'm not necessarily in favor of having the County dictate food choices but I do agree that these sugary drinks are a public health nuisance.

Oh, and the cigarette tax in Chicago (with all other local/state taxes added in) is over $6 a pack. The highest anywhere.

polster wrote:

spinynorman99 wrote:That's pretty much the point. There's a lot of hidden "cost" in a 99-cent bottle of sugar water. The idea of the tax is to make you think twice before buying. Now I'm not necessarily in favor of having the County dictate food choices but I do agree that these sugary drinks are a public health nuisance.

Than the goverment should tax potato chips, cakes, donuts, brownies as well on the same % basis if the theory is food you eat is a 'health nuisance'.

They'll get there....

Maybe in Illinois, but certainly not everywhere.

When bottled water was taxed initially, there was a drop in sales in Cook county. Either people bought reusable containers or bought their bottled water outside the county. I remember reading the commissioner's report, who was disappointed this tax did not generate the expected revenue.

The Dan Ryan has more cars run out of fuel than any other expressway. If they are angling to get to Indiana for lower gas costs, they lost their gamble.

Regards,
Cathy2

Well, to be fair, the Dan Ryan carries far and away more traffic than any other highway in Illinois, so it's likely to have more of everything that happens to cars happen on it than on any other Illinois highway.

AAA made the observation about the frequency of stalled cars due to lack of fuel.

According to gasbuddy.com, gas in Whiting, Indiana is $2.19 and a station on Torrance Ave in Chicago is $2.65. When I am in the area, I aim to fuel up in Indiana, too.

Just doing what I would do, too, if I were in their shoes.

Cathy2 wrote:AAA made the observation about the frequency of stalled cars due to lack of fuel.

According to gasbuddy.com, gas in Whiting, Indiana is $2.19 and a station on Torrance Ave in Chicago is $2.65. When I am in the area, I aim to fuel up in Indiana, too.

Just doing what I would do, too, if I were in their shoes.

But gas in Wisconsin is even less, and people don't run out of gas on the Edens or the Tri-State.

HI,

There is a unique gas tax zone on the Illinois-Wisconsin border, which I read about in a local paper in Kenosha a few years ago. Via Gasbuddy.com just now: Kenosha's lowest price is $1.99 on the Illinois side is $2.11.

In North Chicago along US-41 within a quarter mile of each other: Speedway was $2.17 and Citgo was $2.25.

Gas prices are quite dynamic.

Regards,
Cathy2

polster wrote:This sounds like a good idea in theory in that it will reduce drinking sugary drinks.. But it seems way to high on % basis when you think about a 2 liter pop is on sale for $0.99 on any given week and charging $0.68 tax on that 2 liter pop seems like price gauging mafia style @ 60%+ tax rate. This looks to be worse than the cigarette tax rate in Illinois on % basis.

Cook County Board President Toni Preckwinkle on Thursday will propose a penny-an-ounce tax on sweetened beverages including pop, lemonade and sports drinks to help close a 2017 budget shortfall, a move that comes just 15 months after she pushed through a penny-on-the-dollar sales tax increase, commissioners said.

The beverage tax would boost the cost of pop and the like by 72 cents for a six pack of soda or 68 cents for a two-liter bottle. The tax also would be imposed on fountain drinks. And it would be applied to drinks with sugar and artificial sweeteners, commissioners said. In its first year, it would raise an estimated $74.6 million.

http://www.chicagotribune.com/news/loca ... story.html

I don't want to take my health cues from my government. They're too susceptible to lobbyists when deciding "what's best" for us, and have historically been very inconsistent in their choice of targeted health concerns.

Obviously drinking tons of soda is not the best health choice, but I totally disagree with financially penalizing citizens for their personal choices.

bnowell724 wrote:

polster wrote:This sounds like a good idea in theory in that it will reduce drinking sugary drinks.. But it seems way to high on % basis when you think about a 2 liter pop is on sale for $0.99 on any given week and charging $0.68 tax on that 2 liter pop seems like price gauging mafia style @ 60%+ tax rate. This looks to be worse than the cigarette tax rate in Illinois on % basis.

Cook County Board President Toni Preckwinkle on Thursday will propose a penny-an-ounce tax on sweetened beverages including pop, lemonade and sports drinks to help close a 2017 budget shortfall, a move that comes just 15 months after she pushed through a penny-on-the-dollar sales tax increase, commissioners said.

The beverage tax would boost the cost of pop and the like by 72 cents for a six pack of soda or 68 cents for a two-liter bottle. The tax also would be imposed on fountain drinks. And it would be applied to drinks with sugar and artificial sweeteners, commissioners said. In its first year, it would raise an estimated $74.6 million.

http://www.chicagotribune.com/news/loca ... story.html

I don't want to take my health cues from my government. They're too susceptible to lobbyists when deciding "what's best" for us, and have historically been very inconsistent in their choice of targeted health concerns.

Obviously drinking tons of soda is not the best health choice, but I totally disagree with financially penalizing citizens for their personal choices.

Agreed. Yes, these are easily-targeted, deep-pocketed entities for which it's very hard to have any sympathy. Still, as much as I agree with the sentiment, the method here seems selectively biased to me.

=R=

Maybe I'm a disenfranchised soul, but I have a feeling that this tax is not going to be to deter ppl. It's going to be because so many ppl are "hooked," that they know they can tax it in order to steal more money. Perfect scheme - they can mask it as a health concern - just like cigarettes. I might be wrong, but that's my gut feeling. Why would anyone think they would do anything for the common good - especially in crook county?

I'll just transfer my Costco trip from Melrose Park to Libertyville and Cook Co. will lose all the tax on the rest of the purchase.

Octarine wrote:I'll just transfer my Costco trip from Melrose Park to Libertyville and Cook Co. will lose all the tax on the rest of the purchase.

This. As a Lake County resident, I think twice before shopping in Cook County (i.e., south of Lake-Cook Road, or as we used to call it, County Line). If I were a car-owning resident of Cook County, I'd do at least some of my shopping--certainly my stock-up and Costco shopping--in other counties.

No joke. It's amazing how much cheaper certain staples are up here, particularly gas. I paid $2.12 p/g yesterday in Waukegan, after a trip to Lewis Fresh Market. Blue corn tortillas, giant bags of immaculate jalapeños for a buck forty nine, AND cheap gas? Yay Lake County!

I am currently living 20 miles south of Tucson.

The closest gas stations are $0.30-0.50 more per gallon than Tucson.

When I want to stop at the deli for lunch meat the local Kroger's and Safeway are always a minimum of $2 per pound than the groceries in Tucson (even Kroger's). And Tucson prices are much higher than the highly competitive Phoenix market.

No, I don't drive to Tucson to save on gas or groceries. Ditto for Phoenix.

However, since I am in Tucson twice a week for other reasons, I will stop for groceries and fill up on gas every time I am up there.

By my computer and on my refrigerator, I have lists for food items for my next trip to Winco Foods (Gilbert) and for AZ International Market (Mesa). I get to Phoenix about every other month and come stocked with a couple of empty coolers. Shopping at those stores gives a wider selection of produce as well as about 25% savings over what I find nearby.

Like the local business people in this area think that we are going to buy from them just because they are the only players in town, the City of Chicago had better realize that most people can head to one of the other counties 2-3x per month and pick up whatever they want to tax heavily. I am sure that Lake Co. business people appreciate the business.

By the way, when they go over to buy their soda and beer and the like, they might decide to pick up a couple racks of ribs or use the trip as an opportunity to do a grocery "stock up" trip.

sundevilpeg wrote:No joke. It's amazing how much cheaper certain staples are up here, particularly gas. I paid $2.12 p/g yesterday in Waukegan, after a trip to Lewis Fresh Market. Blue corn tortillas, giant bags of immaculate jalapeños for a buck forty nine, AND cheap gas? Yay Lake County!

I presume you went to Lewis Market on Grand. Don't bother with the one on Lewis Avenue, because it has a much different personality.

On 120 going east, there is an Aldi, a $3 car wash and just a bit further east on the southside is Bargains in a Box. They often have Costco returned goods on a wide range of products.

Regards,
Cathy2

This post is from May, 2015 before the Cook County sales tax was raised again:

Mettawa is Lake county
Bloomingdale is DuPage county
Lincoln Park is Cook county

Subject: Costco

Cathy2 wrote:HI,

I bought the same item* at three different Costco locations with the variance in cost reflecting local taxes:

Mettawa: $150
Bloomingdale: $151.29
Chicago - Lincoln Park: $153.87

*It was on sale, I just happened to pass these locations.

Regards,

Property taxes in Lake County are considerably higher than in Cook County so if you live in Lake County it just seems silly to get so worked up about saving a few bucks when you go shopping. You're more than making up for it when the assessor comes a calling. Sales tax - it's the tail wagging the dog in this case.

=R=

ronnie_suburban wrote:Property taxes in Lake County are considerably higher than in Cook County so if you live in Lake County it just seems silly to get so worked up about saving a few bucks when you go shopping. You're more than making up for it when the assessor comes a calling. Sales tax - it's the tail wagging the dog in this case.

=R=

It's the thrill of the hunt!

In my community, people from Chicago move here because the increased expenses rival their cost for private school. Once their kids graduate, they move back to Chicago.

Regards,
Cathy2

ronnie_suburban wrote:Property taxes in Lake County are considerably higher than in Cook County so if you live in Lake County it just seems silly to get so worked up about saving a few bucks when you go shopping. You're more than making up for it when the assessor comes a calling. Sales tax - it's the tail wagging the dog in this case.

=R=

That's a specious argument. The issue under discussion is not where to live but where to shop. If circumstances are such that you live in Lake County, why shop in Cook County when you have more affordable options? And if circumstances are such that you live in Cook County, why not shop in Lake County or one of the other collar counties when you have the opportunity?

Furthermore, property taxes are based on percentages of assessed home values. The property taxes on my home where I live in Lake County are considerably lower than than the property taxes would be on the identical structure where you live or in many communities in Cook County.

Furthermore, property taxes are based on percentages of assessed home values. The property taxes on my home where I live in Lake County are considerably lower than than the property taxes would be on the identical structure where you live or in many communities in Cook County.

Bingo. Taxes in, say, Evanston, my former home, far exceed any community in Lake County, be it pricey Lake Forest or the more modest smaller communities up here. I have found the difference to be startling so far.

I know how property taxes work (gee, thanks) and I stand by my comments. Taxes on similar residential dwellings in both counties will almost assuredly be higher in Lake.

As for Evanston, since the entire community must subsidize a huge swatch of lakefront property owned Northwestern University, which pays no property taxes, that's a certainly an exception and it has been for years.

I hope no one wastes a half-gallon of extra gas traveling to a neighboring county to make retail purchases. Otherwise, your savings will likely be nil.

=R=

That doesn't make sense if I'm already in Lake County. I'm not wasting gas by not going to Cook County to shop.

It does make sense for people in Cook County, which is exactly why I used the wording "why not shop in Lake County or one of the other collar counties when you have the opportunity?"

Hi,

I was just listening to an interview with a representative from the Illinois Retailers Association.

This tax will be on 9,000 items, not all of them sweetened with sugar nor carbonated. Berkeley, California and recently Philadelphia have enacted a similar tax. It is expected this tax will be implemented on July 1st, when the minimum wage rises to $10. from $8.25.

They indicated grocers on the county line border will be most affected by people shopping in another county. The accumulated affect of highest sales tax in the nation, high fuel and now beverage taxes, will compel more people to leave Cook county for their stock up purchases.

Regards,
Cathy2

ronnie_suburban wrote:I know how property taxes work (gee, thanks) and I stand by my comments. Taxes on similar residential dwellings in both counties will almost assuredly be higher in Lake.

As for Evanston, since the entire community must subsidize a huge swatch of lakefront property owned Northwestern University, which pays no property taxes, that's a certainly an exception and it has been for years.

I hope no one wastes a half-gallon of extra gas traveling to a neighboring county to make retail purchases. Otherwise, your savings will likely be nil.

=R=

That was my thought when I saw Cathy's purchased item from Costco based on county. If I was there already and had the time, sure why not, otherwise it is a waste of time in addition to gas for me.

Last year, the Emanuel administration slipped through a tax on streaming video and cloud computing. Now, again without public hearings, City Hall is targeting bars and restaurants with a surcharge on satellite TV feeds.

http://www.chicagobusiness.com/article/ ... ave-to-pay

Cook County pop tax likely to be nixed next week as three more commissioners back repeal

Hooray!