Residents weigh in on mayor’s tax hike: ‘Downtown isn’t seeing this pressure’

After refusing to indicate whether he would raise taxes in Chicago during his last campaign, Mayor Rahm Emanuel announced yesterday that he intends to seek the City Council’s approval on a provision to hike Chicago’s property tax to make up for budget shortfalls.

The mayor’s budget proposal also includes a record property-tax hike, a new tax on e-cigarettes and an increase in garbage collection fees.

Leaders of the Democrat-controlled state House and Senate say they’re on board and there’s a hearing later this week.

Moody’s Investors Service, which has already cut the city’s credit rating to junk, said on Tuesday it would not comment on the budget until it is passed by the aldermen.

Governor Rauner is overstepping his authority and creating obstacles to the democratic process by threatening to veto the Mayor’s request for a change in the property tax exemption. Cab Drivers United/AFSCME Local 2500 issued a statement following the budget address chastising the mayor for giving a “massive handout to $50 billion corporation”.

He vowed to eliminate structural debt by 2019 — the year of the next mayoral election — and install air conditioning in all city schools. Recognizing all the political risks that come with approving the tax hikes and fees, Emanuel offered Chicago aldermen a pep talk of sorts.

At a press conference on Thursday, Emanuel said the city is “on strong ground” with its legislative efforts. “But there’s a choice to be made”.

Among aldermen, who have largely been seen a rubber stamp for the mayor over the years, reviews were mixed.

Rahm Emanuel, who was re-elected this year after a tough campaign, says the tax hike is the best way to address deep financial problems caused in part by Chicago’s vastly underfunded pensions. Carlos Ramirez-Rosa (35th Ward). He says the taxes and fees continue to “nickel and dime” every day Chicagoans. “We’ve got to do what we have to do to save our city and that’s the bottom line”. Emanuel has not said how much that would rise under his plan, or if any relief would be expanded statewide.