In an effort to combat homelessness in Chicago, Mayor Brandon Johnson has proposed a new graduated real estate transfer tax. The plan, known as “Bring Chicago Home,” aims to raise revenue of $100 million. However, this initiative is facing opposition from business groups who are mobilizing to derail the proposal.
A committee of the Chicago City Council will be holding a public review on Wednesday to discuss the resolution that calls for a referendum vote on the tax initiative in March. This review will provide an opportunity for various stakeholders to voice their opinions, including affordable housing advocates, faith groups, unions, and supporters of the Mayor’s plan.
On the other hand, Chicago’s most powerful real estate interests are also expected to make their case against the proposed tax. These business groups argue that the tax will have a negative impact on the real estate market and discourage investment in the city.
The plan to address homelessness through a real estate transfer tax is not a new concept. A graduated real estate transfer tax would levy higher taxes on high-value properties, with the aim of generating revenue to fund affordable housing initiatives. Proponents of such a tax argue that it is a fair way to address housing inequality and provide resources to combat homelessness.
Opponents, however, believe that the tax will burden property owners and discourage real estate investment in Chicago. They argue that it could lead to a decrease in property values and potentially hinder economic growth.
The outcome of the public review and the subsequent referendum vote will determine the fate of the proposed tax initiative. If the resolution is successful, the tax will be put to a citywide vote in March. This will be an important moment for both those in support of addressing homelessness and those concerned about the potential impact on the real estate market.
Overall, the issue of homelessness in Chicago will continue to be a point of debate, with different stakeholders bringing forth their perspectives. It remains to be seen whether Mayor Johnson’s plan will be able to overcome the opposition from the business groups or if an alternative solution will be pursued.
– Chicago Tribune
– City of Chicago Government Website