Chicago Mayor, Rahm Emanuel, is considering raising taxes in order to shore up the city’s troubled Municipal Employees and Laborers Pension Funds. This would not be the first time Chicago’s telephone tax has dramatically increased in recent years. For instance, according to The Chicago Times, the prepaid telephone tax increased from seven to nine percent in 2014. The continuous drumbeat for more tax increases by Chicago’s political class should be alarming to taxpayers. Residents should be wary of the Mayor’s proposal considering the level of poverty in Chicago and the enormous local tax burdens residents already face. While the tax increase may temporarily assuage bond ratings agencies, it would lower the quality of life for many in the Windy City.
National Taxpayers Union will continue to monitor these developments and alert taxpayers to the threats posed by big taxing, big spending politicians.