Monday, November 5, 2012

Actions On Taxes Have Consequences

I've written a couple of times about the Cook County "violence tax". On Friday, the Cook County Board's Finance Committee in a special meeting approved this tax.

Taxes are an important consideration for any business.

Outdoor (and firearm) retailer Cabela's opened a large store in Hoffman Estates, IL in 2007. This is in the western part of Cook County. Soon after, the Cook County Board raised property taxes. Retailers are assessed based upon their retail space. Though it has a second floor, this Cabela's store has closed that section and crammed everything into the first floor of the store in an effort to reduce their taxes.

In an article published yesterday in The American Thinker, Anthony Ciani speculates that the Hoffman Estates store may become the first Cabela's to close down and this new firearms tax may be the reason.
When bullets only cost 3.5¢ to 20¢ apiece, a 5¢ tax is ridiculous, and $25 per gun is around 5% to 10% of the value of most guns. Preckwinkle dropped the bullet tax but the gun tax was just approved by the Finance Committee for a vote by the whole, along with a bunch of other tax increases. Primary season is long over with. The proposal is not an anti-gun tax, but retail vampirism disguised as sin taxes. The normal sales taxes in Cook County are already high, and the sales tax in the Village of Hoffman Estates is 9.5%. There is no reason for a person to pay a total tax of between 14.5% and 19.5% on a gun purchase in Cook County, when they can go 3 miles down the road to one of Illinois' largest gun dealers, GAT Guns, in East Dundee, Kane County, where the sales tax is only 8.25%.
While Cabela's has not indicated that they will close the store, Ciani says they have good reason to do it and offers some suggestions on how they can make it a win-win proposition for the company.

Read the whole article here.

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