WASHINGTON (Sputnik) — Politicians in Chicago, the United States’ third largest city, are seeking at present to increase property taxes, but have not seriously probed the city’s continued revenue issue, Chicago Political Economy Group spokesperson Joe Persky told Sputnik.
"There’s a long run structural imbalance. They haven’t been funding everything they’ve been spending," Persky said. "It’s really unfortunate… the issue never got dealt with in a serious way."
On Tuesday, Chicago Mayor Rahm Emanuel proposed to the Chicago City Council a $588 million property tax increase in order to pay primarily for the police and fire personnel pensions, phased in over a four year period.
Critics throughout the political spectrum have attacked the idea of a property tax increase.
The tax hike will only hurt Chicago’s working class and not its wealthiest citizens, Chicago community activist Andy Thayer told Sputnik on Tuesday.
"It’s going to dramatically affect working class living standards; 2.7 million Chicagoans that don’t have adequate retirement, this will take a bite out of their retirement," Thayer said.
Thayer explained all tax increases in Chicago are regressive flat taxes that hurt the city’s middle class workers in addition to its foreign workers.
"I’m not a homeowner and never have been, but it will affect my rent," Thayer said.
He added that the hubris of the political-financial elite in Chicago is nothing short of breathtaking.
Persky, however, argued that Chicago politicians have known there has been a significant revenue problem, but none of them knew where they would get the money to balance the budget.
"The group [CPEG] has favoured a tax on the options exchanges that would reel a good deal of money and be more progressive," Persky said. "There was also the option of an employment tax which would have captured some of the suburbanites that earn a living here and go back to the suburbs, while paying almost nothing in taxes."
Mayor Emanuel is to be credited, Persky said, for offering tax exempt status for lower income households and for trying to provide relief for low income residents.
"However, I do think tapping into the larger metro area, which enjoys the city and is here because of it is a part of any long term solution," Persky suggested. "An employment tax or tax on financial sector or transaction would be attractive."
The Chicago Political Economy Group is an advocacy organization that researches, writes and speaks to advance the cause of economic and social justice, according to the organization’s website.
Community activist Andy Thayer is office manager at the Chicago-based Loevy & Loevy Attorneys at Law.
