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Taxing times in Chicago

Posted October 02, 2007 11:00 pm

Mike Ramsey

Potential tax increases would be in store for Chicagoans, their Cook County neighbors and visitors who spend money here, under proposals before elected leaders.

Chicago Mayor Richard Daley on Tuesday downplayed the onslaught to taxpayers as he was pressed about the array of taxes his administration has suggested to plug a roughly $200 million revenue shortfall in the next city budget.

Among the ideas aldermen are being asked to consider are a hike in the local gasoline tax, a 10-cent tax on bottled water and an increase in property taxes.

"We're going to be looking at everything,' said Daley, who is expected to unveil his new city budget next week. "Budgets are very difficult challenges."

Daley typically has been reluctant to raise city-related property taxes but said any increase in that area would be earmarked for Chicago's library system.

The mayor's tax trial balloons are being launched as the Cook County Board is eyeing a controversial 2 percentage-point hike in the county sales tax. A proposal commissioners discussed Monday would increase the county sales tax to 2.75 percent from 0.75 percent, making the combined sales tax 11 percent in and around Chicago.

Opponents say that level would be the highest in the nation and would harm Chicago retailers. Indications are proponents will push for a smaller increase.

Still, the county plan already has stolen thunder from a proposed mass-transit bailout that would hike by 0.25 percent the metropolitan sales tax that helps fund commuter trains and buses in the Chicago area. The plan is written into proposed state legislation.

"Go talk to the state; don't talk to me," Daley said Tuesday when asked about the convergence of proposed tax hikes. "I don't run the state, and I don't run the county. I have a responsibility to move Chicago forward."

Laurence Msall, president of the Civic Federation, said Chicago and Cook County governments have yet to lay out their proposed spending plans to let the public judge whether they are using existing resources wisely.

"Absent an actual budget or spending plan, the public and citizens are left in the dark," Msall said. "It's illogical and unfair to ask for a tax increase before you explain how you'll use the money."

He said the Civic Federation supports legislation for the transit-related sales tax increase. The plan has been aired publicly and includes reforms in the way transit-employee pensions are funded, Msall said.

Mike Ramsey can be reached at (312) 857-2323 or ghns-ramsey@sbcglobal.net.

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