We read about Cook County’s sales tax increase in the local newspapers, but the reality of Chicago’s now 10.25 percent sales tax — the highest in the nation — didn’t sink in until the cashier at our favorite coffee shop said “that’ll be $4.01” when we asked for a simple parfait.
The four-dollar mark represents a breakfast barrier for us. We immediately resolved to wake up ten minutes earlier each weekday so that we’d have time to scarf down a bowl of yogurt mixed with granola before heading for the train.
But this got us wondering: What more can we — and you — do to take the sting out of the 10.25-percent tax bite? We polled our staff — ouch! — and came up with these seven suggestions.
1. Shop in Wisconsin. If you need to spend big bucks on purchases that you can fit in one car load, consider making the short drive up I-94 to Kenosha, where the sales tax is 5.10 percent, roughly half that of Chicago. Kenosha is home to the Bristol Renaissance Faire and has excellent beaches, in case you’re a medievil windsurfer who’s looking for added motivation for heading to cheese country.
2. Bring your own lunch. No, there’s nothing original about this tip. But of our seven suggestions, it’s likely the one that can save you the most money. If eating out sets you back eight bucks a day and bringing your own lunch only costs three bucks, then brownbaggin’ it would save you approximately $1,250 annually.
3. Buy all your stuff on Amazon.com. At the risk of further inflating Jeff Bezos’ ego, we must confess to loving Amazon. Orders over $25 ship for free, and you pay no sales tax (note: technically — i.e., legally — you’re obligated to pay sales taxes on Internet purchases). And Amazon is much more than a book-seller these days. Electronics, appliances, clothing, toys, food — they sell it all. Once we get done writing this post, we’re going to buy a case of our favorite Clif Bars.
4. Become a minimalist. Getting by with less isn’t just a money saver, it’s also trendy. The Nostradamus of our times, Faith Popcorn, has stated as much: “Workingmen and women are questioning their personal and career goals and opting for a simpler way of living. We see it in people of all ages and especially among those in their 20s. These young people are so tired of everything; they sound like they are in their 90s.”
So hop aboard the anti-consumerism bandwagon. Make your mantra, “No purchase, no sales tax.”
5. Negotiate. As a Russian coworker once said to us after she talked her way into a deep discount on a pair of Dansko shoes, “It’s all negotiable.” True, bartering can be uncomfortable, both for you and for the salesperson. But the economy has hit the skids and retailers are desperate to move merchandise. You have little to lose and much to gain in asking for, say, a 10.25% discount, especially when purchasing big-ticket items.
6. Use a cash-back credit card. Not to sound like a swill for a major corporation, but the American Express Cash Rebate Card is a no brainer. Spend more than $6,500 annually with your no-annual-fee AmEx card, and you’ll receive a 5 percent cash refund on purchases made at grocery stores, drugstores, and gas stations. Plus, AmEx will double the warranty coverage on all purchases made with the card. So if you’re buying electronics, use your AmEx and turn down the overpriced and oft unnecessary extended warranty.
7. Move to New Hampshire. If you really want to avoid being bitten by taxes, pack up your snow shoes and fuzzy woolens and head to New Hampshire. The Granite State has no sales tax and no state income tax. Plus, it boasts one of the most colorful, if cryptic, state mottos in the Union: “Live Free or Die.” Perhaps “Live Tax Free, Then Die” would be more appropriate. Regardless, the Libertarian in us envies all those crusty New Englanders who can buy a $20,000 car without having to worry about a $2,000-plus tax penalty.
