Traffic-congestion tax aimed at suburban drivers on Emanuel's radar

Wow, More Liberal taxing in the works. This week or in the near future the Huge Property tax Hike goes into effect in Chicago. Lets see what happens with business and property owners.

Is a congestion tax an answer for both lightening road traffic in Chicago and providing a bit more revenue for the financially-strapped city? Mayor Rahm Emanuel may be considering such a scheme, according to a report by the Chicago Sun-Times.

Alderman Ed Burke is backing the idea, the report said, and would lead a committee to study the issue. Though still in very early stages of planning, sources told the Sun-Times the tax could generate an estimated $195 million annually from fees charged for driving on city streets -- not state or federal highways -- during rush hours, between 6 a.m. and 10 a.m., and 3 p.m. to 6 p.m.

Heavy traffic on Michigan Ave. in Chicago. (Photo by Ryan. Used under Creative Commons license.)
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Heavy traffic on Michigan Ave. in Chicago. (Photo by Ryan. Used under Creative Commons… more

RYAN | CC-LICENSED HTTPS://FLIC.KR/P/7ZPND2

Perhaps the most interesting aspect of the rumored proposal is that it would only charge the tax to people who are not residents of Chicago, itself, and whose cars are registered outside the city, the report noted.
Politicians representing suburban areas have already blasted the idea. The Daily Herald quoted state Representative David McSweeney, a Republican from Barrington Hills, warning that the tax would hurt Chicago, economically, by discouraging visitors. The report only included anecdotal support for the notion. Perhaps the closest comparison in another major American city was then-Mayor Michael Bloomberg’s attempt to institute a congestion tax in New York City, the Sun-Times suggested, though that initiative failed to get off the ground because that state’s legislature did not cooperate, and so European cities appear to be the main points of comparison.

Other suburban politicians quoted by the Daily Herald questioned how effective the city’s tax-collection methods might be, and suggested that it would be yet another reason for businesses to flee to the suburbs.

http://www.bizjournals.com/chicago/news/2015/09/21/traffic-congestion-tax-aimed-at-suburban-drivers.html