I read with interest the letter from Richard J. Mateles (Voice, March 29) regarding the creation of a sales tax refund program for international visitors in Illinois, and I have had the opportunity to learn firsthand the merits of this proposal.
The initial reaction was natural: How could we give up sales tax to international visitors? However, further review shows that tax dollars are not really given up. The dollars that would be refunded are more than paid for by increases in international visitors’ length of stay or expenditures. Furthermore, these increases are accompanied by job creation and increased economic activity. These increases have been verified by independent economic research.
House Bill 1979, which has passed the House revenue committee, does not call for adding a layer of government; quite the contrary. Private agents would handle the administering, financing and marketing. This is how the program works all over Europe with great success.
Tourism is the fastest growing industry in the world and the No. 2 industry in Illinois in terms of job creation. This is a globally competitive environment we live in, and this program would put Illinois on a level playing field with the likes of London, Paris and Milan but give us a competitive advantage over 48 states.
Old Orchard supports this idea, and we know that pro-active initiatives like this one are vital to survival in this new marketplace.
There is also a great support from all segments of industry in Illinois, including retail, hospitality, transportation and labor. A program that creates jobs, increases economic activity and pays for itself through an increase in net tax revenues-I don’t know many programs with a greater impact.
