2 Comments
Jan 30, 2023Liked by Vaughn Cordle, CFA

The problem is not unique to Chicago. Cities (and states) that have relaxed the penalties for crime are beginning to lose their tax base. Criminals pay no taxes of stolen merchandise; stores with high shoplifting (that are robbed) can't collect sales tax; shop owners report losses; lowering any income tax revenue; the smart ones just shut down after developing a virtual presence and likely relocated to a more business friendly environment anyway (Florida, Texas, etc.). With fewer people working or shopping in the city there are fewer services delivered as well. Lightfoot won't address the problem until there are more boarded-up storefronts than their are ones still trying to do business.

Sadly, Lightfoot isn't the only problem. If Lightfoot put some pressure on Kim Fox or Pritzker, she might be excused. Unfortunately, these highly progressive pols are learning what too much progressiveness looks like. Sadly, the remaining taxpayers, who will be mostly downstate (outside Chicago) will pay. The non-taxpaying residents of Chicago don't care; they're the ones stealing.

Expand full comment