Why are residents so opposed to this tax hike?
Chicago's property taxes are considerably higher than other large cities; with effective property tax rates more than double the national) average. Chicago has a history of using property tax hikes to address budget deficits, leading to tax fatigue.
The city also has a heated past with budgets related to Chicago's police force. Past financial decisions, including substantial expenditures on police settlements and infrastructure projects, have led to skepticism about the city's budget priorities and management.
In 2019, the city spent $95 million on a police and fire training academy, which infuriated residents. Combined with the $81 million taxpayers spent on settling police misconduct cases in 2023, residents are unswayed by the mayor's suggestion the budget gap could impact the police.
Higher property taxes can also lead to increased operating costs for businesses, resulting in higher prices or even business closures. During a time of high inflation, the economic impact of tax hikes likely concerns both business owners and residents.
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Read MoreWhat are the alternatives to the property tax increase?
Alderman Scott Waguespack of the 32nd Ward told reporters he'd like to see the mayor voluntarily withdraw the property tax hike and present fresher ideas to bridge the budget shortfall.
"What we’re telling him is go back to your departments and say, ‘You have to find the cuts’,” Waguespack recalled. “‘They have to fit in with a much lower budget amount, and that’s on you to do it.’"
Other ways to reduce the deficit include reducing private office upgrades, implementing a financial transaction tax, which would tax stock or derivatives trades, or revisiting tax increment financing (TIF) policies. These alternatives contribute to the property tax hike opposition, as residents believe there are plenty of options to consider.
According to Fox 32 News, budget hearings will continue through December, with a final vote expected by year-end.
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