Heartland Institute Experts Comment on Chicago Cell Phone Tax

By John Nothdurft, Steve Stanek, S. T. Karnick, Matthew Glans

Published May 27, 2014

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“Mayor Emanuel’s proposed 56 percent increase in the city’s cell phone tax would give Chicago the highest tax of its kind in the nation. The city also boasts the highest cigarette tax, which was increased late last year, one of the highest sales tax rates, the second highest property tax, second highest meal tax, and second highest car rental tax- just to name a few. This is the tax equivalent to death by a million cuts. Is it any surprise then that the city has experienced population loss over the last decade? Until local and state government get their spending under control, Illinoisans will see more tax hikes that drive jobs and workers out of the state.”

John Nothdurft
Director of Government Relations
The Heartland Institute
[email protected]
312/377-4000

“More than 20 percent of the cost of wireless phone service in Illinois already goes to taxes, one of the highest wireless phone tax burdens in the United States, and Mayor Emanuel wants to force Chicagoans to pay more? And state lawmakers are seriously considering allowing Emanuel to do it? This latest news nicely illustrates why a major public opinion poll recently concluded more than half of Illinois residents want to move out of the state, and why the Chicago Sun-Times ran a story on May 10 headlined “Poll: Rahm election on ropes; voters say no better than Daley.”

Steve Stanek
Research Fellow, Budget and Tax Policy
The Heartland Institute
Managing Editor
Budget & Tax News
[email protected]
815/385-5602

“Wireless taxes are not a cash cow for government to be used to fuel ever-increasing spending. High wireless taxes have a negative effect on the economy by dragging down both consumers and the wireless market. The taxes being proposed by Mayor Rahm Emanuel would continue to hinder both Chicago and Illinois’ economic competitiveness, further deterring innovation and infrastructure improvements while disproportionately affecting minority and low-income populations.”

Matthew Glans
Senior Policy Analyst
The Heartland Institute
[email protected]
312/377-4000

S.T. Karnick
Director of Research
The Heartland Institute
[email protected]
312/377-4000

The Heartland Institute is a 30-year-old national nonprofit organization headquartered in Chicago, Illinois. Its mission is to discover, develop, and promote free-market solutions to social and economic problems. For more information, visit our Web site or call 312/377-4000.