Higher taxes bring negative returns

As 2008 rolled in, people purchasing a bottle of water might have noticed that their water cost an extra nickel in Chicago.

Is it due to exploration costs of finding new water supplies? Is it due to rising fuel costs to delivery water to the store?

Nope, it is a cash grab by Chicago politicians to take more of your money with a 5-cent-per-bottle "bottled water tax."

Has it worked? It sure hasn't. At the pace that the tax revenues are coming in, the city will only receive about 46 percent of its projected "revenues" from this tax.

This has a double negative effect.

First, the city has already budgeted a dollar amount and this shortfall will require it to try to find other ways to bring in your money.

More importantly, it hurts local supermarkets and convenience stores that are losing business because of this tax.

This also has a negative effect on citizens who are looking for a job.

If store sales are declining, businesses might not hire new employees, or even worse, they might close down if they can no longer remain profitable.

This will also have a negative effect on consumers who will have to travel further to do their shopping.

This is already happening though, as people travel to the suburbs for cheaper gas and less oppressive taxes.

Bottled water is normally a secondary purchase as people might buy a bottle at a gas station while filling up, or in bulk while doing their grocery shopping.

By singling out bottled water, other items will also be purchased outside of the city. This diverts even more tax dollars away from Chicago.

Politicians don't understand that, like water, which flows through the path of least resistance, consumers will shop at places with the least taxation.

All forms of taxation are oppressive and the best way to promote a free-market and healthy business competition is through low taxation.

By fostering an environment that promotes small businesses to come into the marketplace, everyone comes out better off.

Of course, politicians don't see it that way as they continue to look for the next item to ban or tax.

Smaller government and lower taxes benefit everybody.

Jim Tobin

National Taxpayers United of Illinois

Chicago