By: Diane Benjamin
Starting January 1st under a new Illinois law you will pay more sales tax if you trade-in a vehicle for more than $10,000.
If you trade in a nice car to buy an even nicer car, you have a tax bulls-eye on your wallet. Democrats think you are rich and therefore must be taxed more. This tax is aimed directly at the middle class, the people who they claim won’t be paying more if the progressive income tax gets passed. This attack is more proof Democrats know where tax revenue can be generated, there aren’t enough rich for their folly. Democrats target regular folks until they have nothing left to tax,
Until January 1st here’s how it works:
You buy a car for $30,000
You get a trade allowance of $18,000.
You are only taxed on the difference: $30,000 – $18,000 = $12,000. Tax at 6.25% = $750.
January 1st you are only allowed $10,000 on your trade before calculating sales tax.
$30,000 – $10,000 = $20,000 taxable for a total tax of :
$20,000 x 6.25% = $1,250
The state just stole another $500 from you!
But it’s okay because you are rich! Right?
Buying a car out of state will get you a tax bill in the mail. BTW, if you buy gas across the border pay cash. I hear Illinois expects you to remit their motor fuel tax. Don’t leave a trail for them to find.
Here’s what to do:
Trade-in your car before January 1st – a long time before January 1st. When the population wakes up to this fleece the dealerships will be packed and the deals will be few.
If you need to buy a used vehicle, wait until after January 1st. The lots will be packed with trade-ins and prices will be lower.
You could also keep your vehicle until the value is less than $10,000. Dealers won’t like that option. Cash For Clunkers interfered in the free market and cost a lot of people jobs. Democrats don’t like capitalism, this is more proof.
This fleece is part of Build Illinois. It appears a number of bills make up the total.
The joke is on you if you thought infrastructure was the target for all the new taxes.
Then see Illinois.gov summary: https://www2.illinois.gov/Pages/news-item.aspx?ReleaseID=20266
HR 62. Is one of the bills involved. Who voted YES? Republican leadership: Dan Brady and Jim Durkin. http://ilga.gov/legislation/votehistory/101/house/10100HB0062_05292019_020000T.pdf
There are 37 Republicans in the House. 39 people voted no.
The Senate vote was worse, only 6 NO votes: http://ilga.gov/legislation/votehistory/101/senate/10100HB0062_06012019_001000T.pdf
Local Republicans voting YES: Bill Brady, Jason Barickman, Tom Bennett, Chapin Rose
You already know about Senate Bill 1939: https://blnnews.com/2019/07/17/four-bs-and-an-r/
The same locals voted Yes.
Maybe the Republicans are trying to hasten Illinois’ destruction. Or maybe they are really Democrats,
Either way, none of the locals are fighting for your wallet.