Monday, August 31, 2009

Illinois Braces for Higher Taxes at Grocery Stores


Well well well, it's happening in Chicago.
The increase in the state taxes paid on candy, soft drinks and some alcoholic beverages is now in motion and it's probably just the beginning.
Lovers of carbonated drinks, candy made without flour and alcohol will see price increases as revisions to the state sales tax go into effect.
The extra money is expected to pay for repairs to state roads, schools and bridges.

News of the increase confused consumers and some tax experts by the way certain candy items were re-categorized as general merchandise rather than as candy, which is taxed at a lower rate.

Under the revisions, candy items bought in Chicago without flour are subject to the full 10.25 percent general merchandise sales tax. Meanwhile, candy made with flour will retain its current 2.25 percent tax rate. Most carbonated soft drinks have also been tossed from the food category and subject to the 10.25 percent rate in the city.

Soft drinks and sweets are quickly becoming tax targets and the pretense that it's purpose to fight the fat is almost laughable because the new tax would probably have little effect on obesity.