Politicians’ quick answer to the state’s problems is consistently to raise taxes, but evidence shows tax hikes are a negative for families struggling in a state already lacking opportunity.
Property-tax hikes have caused taxes on NBA star Dwyane Wade’s former house to more than triple, driving away prospective buyers and showing the harm Illinois’ sky-high property-tax rates inflict on homeowners.
In joining the Chicago Bulls, former Miami Heat star Dwyane Wade is trading Florida’s 0 percent personal income tax for Illinois’ 3.75 percent rate, a choice many out-migrating, middle-class Illinoisans cannot afford to make.
Madigan’s stated concern for the middle class rings hollow given that his own plan to boost the state’s fiscal health consists solely of income-tax increases, which would directly reduce the wages and standard of living for Illinoisans.
In 2015 alone, Illinois state government redistributed more than $12 billion in income and other taxes to local governments. These financial shell games have created a needlessly complex system and make it difficult for local taxpayers to hold their governments accountable.
In an effort to shore up pension debt, Chicago officials in 2014 adopted a pension-reform package that included raising the telephone tax. Though the Illinois Supreme Court struck down these changes, the tax hike remains.
While the mayor is right to say that expanding the downtown development area is a “win-win” for developers and poor communities, expanding downtown without the mayor’s proposed new tax on developers and inflexible size restrictions would be a bigger win for both.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.