2012 June Budget & Tax News

The June issue of Budget & Tax News reports property taxes have risen twice as fast as consumer prices in Cook County, Illinois since 2000, with the steepest increases in suburban Chicago. The findings come from a Heartland Institute analysis by Government Relations Director John Nothdurft, who notes huge tax increases--or municipal bankruptcies--are likely unless major reforms are made in how local governments operate.

Also in this issue:

• Detroit spends millions of dollars more each month than it receives in revenues and faces a challenge to continue providing the most basic of government services--police, fire, trash collection, even street lighting.

• President Barack Obama has announced a proposal to lower the corporate tax rate from 35 percent to 28 percent while ending dozens of tax deductions. Businesses would end up paying tax on a larger amount of taxable income. Result: a higher aggregate business tax bill.

• Wisconsin school districts have realized significant savings either through the implementation of collective bargaining changes or the threat of them, according to an analysis by the Michigan-based Education Action Group Foundation.

• New York legislators are pushing for a 17 percent increase in the state’s minimum wage and then indexing it to inflation. Business groups warn a higher minimum wage would reduce employment for those at the bottom of the jobs ladder.

• Pro football’s St. Louis Rams have rejected a proposal by the St. Louis Convention and Visitors Commission for a $124 million renovation of the Edward Jones Dome, with approximately $60 million coming from taxpayers. The rejection fuels speculation the Rams may be maneuvering to leave St. Louis after the 2014 season. Although stadium renovations don’t require a vote of the public, the mayor and the county executive have pledged to hold votes.