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Illinois Tax Increase Day! Alcohol, Soda, Candy and Shampoo?
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The cost of living just went up for Illinois residents, but not because of inflation or other economic conditions. Rather, today marks the effective date for increased taxes levied upon alcohol, candy, soft drinks and personal hygiene products. The taxes, part of the $31 billion capital bill, are designed to offset the costs of infrastructure spending across the state.
Starting today a fifth of liquor in Illinois will now cost an additional 81 cents, reflecting a 90% increase in the excise tax on hard liquor. In addition, a 90% increase on the taxation of a bottle of wine and 24% increase in taxes on beer will also hit Illinois consumers. Despite, the increased taxes going into effect today, consumers may not feel the full effect of the legislation until a month from now. Most liquor stores and grocers have stock-piled as much liquor as possible in an attempt to keep prices lower for consumers for as long as possible.
September 1st also marks the effective date for a more than 600% increase on the taxation of candy, soft drink, and health & beauty products. Illinois, following the lead of nearly a dozen other states, changed the tax classification on these products, marking the birth of a new era in which lawmakers target taxation on these products in the same manner that they have targeted alcohol and tobacco in the past.
In Illinois, the taxes on Candy (of which definitions of candy have caused massive retailer confusion), soft drink and personal hygiene products will increase from the past 1% sales tax rate to the state's general merchandise rate of 6.25%. As a result, every Illinois citizen will pay more for everything from sweet tea to toothpaste. The resulting increase will be felt more in the Chicago than other area as Chicago will now host not only the highest sales tax of any city in the United States, but also the highest alcohol taxes as well.
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