Chicago faces historic tax hike to fund massive debt

As state and local governments across the country continue to grapple with more than a trillion dollars in unfunded pension obligations, they might want to take note of what’s happening in Chicago.

The city has one of the worst pension problems in the nation.

In an address to the city council on Tuesday, Mayor Rahm Emanuel proposed, among other measures, a historic property tax increase of $544 million phased in over four years, and additional fees for garbage collection and for ride-sharing services, such as Uber.  

“This is a historic moment,” says Laurence Msall, president of the Civic Federation in Chicago. “This is the first time … any mayor has … told the city council that there was no magic to balancing the city’s budget.”