Rahm Emanuel wants you to pay less sales tax. But under his plan -- announced Wednesday -- the tax would apply to more services.
It's a plan he briefly mentioned two days earlier during a mayoral forum in front of Mikva Challenge students.
Calling it a win-win for businesses and shoppers, Emanuel said he wants to reduce the total sales tax rate in the city to 1 percent from 1.25 percent. That tax, however, would be expanded to include "luxury goods" -- things like limo rides, pet grooming and other services.
"Chicago has one of ... the highest sales tax for a major city in the country," Emanuel said of Chicago's 9.75 percent overall rate, according to the Chicago Tribune. "Given that, I think this is a way now to bring a cut in the sales tax -- a 20 percent reduction, closing loopholes, make it flatter, broader on what it affects — and therefore you'll see a reduction that's a win for business in the city and it's a win for the consumer."
Almost immediately after the announcement, opponent Carol Moseley Braun sent out a statement calling the proposal a "tax increase."
"The middle class is hurting enough. I don't support any new taxes," she said in a statement.
But Emanuel said his plan could help ease the city's budget woes by bringing in an additional $15 to $20 million.
Gery Chico has said he has a similar plan in mind but has not yet released any details.
Reminds the Chicago Sun-Times:
To change the city's tax rate, Emanuel would need approval from the City Council and state legislators in Springfield.
