If there is any saving grace to the dreaded sales tax, it is that consumers can avoid paying it by spending their money more wisely, by focusing on necessary expenses rather than luxuries, and by saving more money.
That only works so long, though. Where there is a will in government to tax, bureaucrats will find a way.
A case in point: The city council in Bloomington, Ill., is about to raise various fees and taxes to help cover a budget shortfall. One explanation for the shortfall is “flat-lined sales tax revenue.”
The city’s answer to that dilemma: “[C]ouncil members agreed in principle to hike the city sales tax from 7.5 percent to 7.75 percent to generate roughly $2.5 million in annual revenue.” Oh, and guess what the money will fund — construction bonds to build the U.S. Cellular Coliseum.
So Bloomington residents who have been wiser with their money are being punished by a city obsessed with luxuries like concerts. Isn’t that just wonderful?