Thursday, February 07, 2008

De-population of Chicago continues with tax hike

This type of self-destructive behavior somehow becomes inevitable after a certain point of no return for an urban area. Politicians are simply unable to see the big picture and are swept along, down the drain. I suppose that with time and perspective we will be able to understand all the forces involved but it is a very strange sequence of events to witness from afar.

Link

Aldermen held their noses, swallowed hard and demanded that members of the military and disabled veterans get free rides, but ultimately voted to complete a Chicago Transit Authority bailout by hitting city property buyers with a 40 percent transfer tax increase.

Some senior citizens will catch a break, but the City Council's approval by a 41-6 vote means that Chicago's real-estate transfer tax will climb for most everyone from $7.50 per $1,000 of sale price to $10.50 beginning April 1. On a $300,000 home, the result would be a $900 increase.

People 65 and older who buy houses priced at $250,000 or less and attest that they will live in them for at least a year will get a refund of the transfer tax increase but will be required to apply to receive it.