Posted by Daniel Savickas, Americans for Tax Reform, on Tuesday, May 24th, 2016
Chicago Mayor, Rahm Emanuel, is trying to save his city’s bleeding pension fund by raising its phone tax for the second time in as many years. This new tax increase is meant to back up a $600 million General Obligation Bond the Chicago government issued.
The decision by Emanuel comes on the heels of the Illinois Supreme Court striking down his previous plan, the Chicago Pension Reform Act (CPRA). Under CPRA, employee contributions to the pension plan would have to be increased 29 percent, and tweaks were made to adjustments in Social Security.
This new phone tax is nothing new for Chicago taxpayers. In 2014, the wireless tax was raised by 56% from $2.50/month to $3.90/month for every phone line, wired and wireless phone. According to Randy Nehert, the President of the Illinois Telecommunications Association, this would cost a family of four an extra $425 a year. That tax was also meant to save the Laborers’ Pension Fund.