Mayor Daley will reportedly opt for a 0.25% sales tax hike as part of the 2005 budget, ruling out a property tax increase. This is lunacy — most city homeowners got a property tax cut this year, so a slight property tax hike would only reduce a cut. Instead, Chicagoans will pay up to 10% sales tax on certain purchases — one of the highest, most regressive rates in the nation and another great way to push more retail sales out of the city.