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CHICAGO'S BOTTLED WATER TAX COMES UP DRY
August 11, 2008
While having multiple taxing jurisdictions may seem inefficient, sometimes it makes sense to divide and conquer our little kings. The disappointing revenues of Chicago's bottled-water tax is a case in point. Revenues are less than half of what Mayor-for-life Dickie Daley was counting on. The Tax Policy Blog qotes that head of the Ilinois Retail Merchants Association:
"Single-bottle sales have not been dramatically hurt. It's the bulk purchase, the six-pack and the case that has just been killed. There's no reason someone is gonna pay $1.20 extra for a $4 dollar case of water when they can go to the suburbs to buy it without that."
No doubt Chicago is also losing sales tax revenue because Chicagoans are surely picking up other things besides water on their shopping trips. Way to go, Mr. Mayor.
A Chicagoan avoids the bottled water tax in a Flickr photo by Joe M500.
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