Howto fix county budget? Golfing, bowling, watching cable TV
Cook County Board President Preckwinkle hopes to expand amusement tax to rake in more revenue
New taxes proposed Wednesday by Cook County Board President Toni Preckwinkle would squeeze golfers, bowlers, cable TV watchers, e-cigarette users and anyone who buys a sporting ticket on the secondary market.
The taxes come on the heels of a penny-on-the-dollar sales tax increase passed by the County Board this summer that will start lightening wallets Jan. 1 of next year.
Preckwinkle announced Wednesday at a budget meeting that she will push to extend the county’s 3 percent amusement tax to include golf, bowling, cable television and secondary sales of sports tickets.
The new levies, she noted, would be in addition to the 9 percent amusement tax already in place by the City of Chicago. She estimated they would bring in $22 million a year. The money will go toward plugging a $199 million gap in the county’s $4.5 billion budget that’s being addressed through a combination of bringing in additional revenue and reducing expenditures.
Preckwinkle also proposed a new tax on the liquids used inside e-cigarettes that would charge 20 cents for every milliliter of liquid sold. It could bring in an estimated $1.5 million a year.
County Commissioner John Fritchey questioned the proposed taxes.
“I think that we’re at a tipping point when we start taxing people for any purchase they make, and now we’re going to try to tax them when they go to relax from the sales tax they pay by bowling or golfing. We’re not leaving them a lot of escape,” Fritchey said.
Jack Segal, a spokesman for cable TV provider Comcast, said Wednesday in a statement that the new tax “could make it harder for many Cook County families to gain access to cable TV services.”
Asked if she was worried that the additional taxes would be viewed as piling on, Preckwinkle replied, “No, it’s very modest.”
The money is also sorely needed to help pay down a $6.5 billion unfunded pension liability that grows by $1 million each day.
Proposed cuts would also gut a program in Chief Judge Tim Evans’ office that assists people under the threat of mortgage foreclosure.
In addition, demolishing three divisions at the Cook County Jail that are largely vacant because of declining inmate population will save $188 million in maintenance costs over the next 10 years, she said.
Layoffs, reducing overtime and streamlining technologies also have saved millions, she added.
“In this state for a very long time we have not met our obligations and responsibilities,” Preckwinkle said. “So people who have the misfortune to be in executive positions now are struggling with challenges that have been bequeathed to them by their predecessors’ inaction, inability, irresponsibility, and when you find yourself in a position where you don’t have the resources to do the job that needs to be done, you better figure out how to do it.”
A vote on the budget is expected in April.