A Chicago Commuter Tax Would Drive Business Out of the City

A forthcoming spike in pressure on Chicago’s public employee pension system has mayoral candidates turning anywhere and everywhere for funding to make hundreds of millions of dollars in additional retirement payments. The latest proposal? A tax on the wages of those working in Chicago but living outside city limits. Bill Daley, among the candidates vying to replace retiring Mayor Rahm Emanuel, on Wednesday raised the possibility of creating several new taxes, including a commuter tax that would require nonresidents to send wage income taxes to City Hall. The city’s high cost-of-living, including its already hefty tax burden, is one reason many Chicago employees commute in the first place. Each day, hundreds of thousands of individuals travel into Chicago or greater Cook County for work, including tens of thousands from Indiana. However, Chicago itself has seen several years of population decline, and even many suburbanites have become disenchanted enough to leave.…

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