A law passed by the Illinois General Assembly in June allows Chicago to create new transit-based super TIFs, adding more opportunities for city-run slush funds to divert and hoard property-tax dollars.
If Chicago wants to alleviate poverty and economic inequality, the city needs to reform its zoning laws to allow more building – not institute a new tax on development.
As Chicago’s population shrinks, Houston is set to overtake the Windy City as the third-largest city in America. Illinois’ slumping economy is a major reason for that, but the cities’ different zoning rules show how regulations can promote growth – or stifle it.
City zoning policies serve to keep many neighborhoods segregated. These rules also keep lower-income residents of all races out of popular areas, allowing city officials to shape who can live where and making housing more expensive.
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.
Illinois’ tax code stands in the way of the state’s economic competitiveness. The combination of high tax burdens and a poor tax structure contributes to the loss of jobs and investment to other states. From a place of former economic dominance, Illinois now ranks 45th in gross state product (GSP) growth over the past decade...