Chicago Fed Proposes Statewide Property Tax Increase
Out of touch federal reserve economists have proposed creating a special property tax assessment that would raise property taxes across all of Illinois in order to pay for Illinois State employee pensions.
The proposal completely ignores that Illinois property taxes are already increasing at 6 times the rate of incomes, and are driving so many residents away that Illinois is likely to lose two congressional seats.
Illinois already enacted an income tax increase in 2017 with no reforms and is already considering a new progressive income tax increase.
Here is the original story as reported by Wirepoints:
Three Chicago Fed Say Economists Say They Know How To Tax Illinoisans Fleeing Pension Liabilities – Wirepoints Original
An audible gasp went out in the breakout room I was in at last month’s pension event cosponsored by The Civic Federation and the Federal Reserve Bank of Chicago.
That was when a speaker from the Chicago Fed proposed levying, across the state and in addition to current property taxes, a special property assessment they estimate would be about 1% of actual property value each year for 30 years.
Evidently, that wasn’t reality-shock enough. This week the speaker and two of his fellow Chicago Fed economists published that proposal formally. It’s linked here.
It surely ranks among the most blatantly inhumane and foolish ideas we’ve seen yet.
Homeowners with houses worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000.
Are they blind to human consequences? Confiscatory property tax rates have already robbed hundreds of thousands, maybe millions, of Illinois families of their home equity — probably the lion’s share of whatever wealth they had.