The editors of the Wall Street Journal have noticed the whopping tax increases that Mayor Emanuel has proposed:
At Chicago’s City Hall, Mr. Emanuel proposed what he says are some $600 million in annual tax and fee increases, including $588 million in property tax increases phased in over four years. The Illinois Policy Institute says the real total in new property tax revenue over four years will be $1.768 billion in a fiscal 2016 budget of $9.3 billion.
All that cash will do little or nothing to improve city services. Mr. Emanuel says $543 million will fund pensions for firemen and police. The remaining $45 million by his calculation will go to cover capital improvements for public-school buildings.
The tax increase isn’t intended to improve city services. It’s intended to pay for the mayor’s and his predecessors’ promises to city workers. Whether those promises have resulted in improved city services you can judge for yourself. I’m skeptical to say the least.
What the promises have paid for is the re-election of the mayor and his predecessors again and again. I don’t think we’re better off for that but I’m admittedly in a minority.
Something else the tax increases will pay for: the increased interest the city will pay on its loans, the direct product of the mayor’s incompetence.
At least things are falling apart all over, so you’ll have company.
Caterpillar to cut more than 10,000 jobs
Although Cat still has four plants around Peoria, it has more than 50 elsewhere, including quite a number in China. Until we know more details of where the cuts will be made it’s hard to say where the pain will be felt.
CAT is still going forward with plans to build a 31 acre headquarters in downtown Peoria, so any local effect will probably be muted. But if I were to look for probable plant layoffs it would be in its mining business, which is probably Decatur, IL, and Milwaukee. Overseas I think they have mining plants in Australia, Indonesia, Thailand and China. I wouldn’t be surprised if the overseas jobs take the brunt.