Our friends at Progress Illinois blog outline some of the ways Mayor Daley continues his dishonest ways around property taxes -- and that Tax Increment Financing (TIF) is at the center of the scam.
This is no news to members of Northside Action for Justice, who have been pointing out the fundamental dishonesty and injustice of the city's TIF program for more than a decade.
Daley -- and most Aldermen, when it suits their interests -- pretend that TIFs are magic, and create money without raising property taxes. They pretend that committing millions of public dollars to institutions like Loyola and S&C Electric is a free lunch that neither adds to the tax burden of residents nor takes money away from other essential public services like schools, parks, city services, libraries, etc.
Those claims are as ridiculous as was the praise for the emperor's famous new clothes.
If we can be honest for a moment, let's admit that taxes are important and necessary. Taxes pay for all public programs and services, and that's the way it's supposed to be. Government is not supposed to be a business - or run like one - whose primary directive is to make a profit.
The debate about taxation should be about fairness in who pays, effectiveness in how public goods/services are delivered and equity in who benefits. Pretending that TIFs are magic is a way to avoid debating whether the community should be paying for Loyola's private, tax-exempt campus construction or a former Alderman's real estate deals.
Maybe a requirement for participatory budgeting for TIFs would help bring this debate back to the true issues.
November 25, 2009
November 24, 2009
Home crisis deepens; responses gain traction
One of every four mortgages in the country is now "underwater" (meaning what 'homeowners' own is more debt to the banks than their homes are worth) as the bursting of the housing bubble made inevitable.
The big banks, of course, are resisting the fundamental restructuring of mortgage debt that is needed to stave off massive evictions, and government programs continue to fall far short of the need (an outright ban on evictions due to foreclosure, giving people the right to stay on paying fair rent, would be a cost-effective way to stabilize families and communities).
Under pressure from groups like NA4J, two progressive reforms, are picking up political support.
* A tax on financial transactions (sometimes called the "Tobin Tax" for economist James Tobin), which could finance a large scale federal jobs program, would slow down the speculative "casino" and put a share of the
cost of fixing the economy onto those that broke the economy in the first place. Several members of Congress and British Prime Minister Gordon Brown are now publicly advocating for this.
* "Too Big To Fail" is Too Big. Momentum is growing for proposals to break up the large financial institutions, to ensure that taxpayers won't be put on the hook next time their gambling goes bad.
The big banks, of course, are resisting the fundamental restructuring of mortgage debt that is needed to stave off massive evictions, and government programs continue to fall far short of the need (an outright ban on evictions due to foreclosure, giving people the right to stay on paying fair rent, would be a cost-effective way to stabilize families and communities).
Under pressure from groups like NA4J, two progressive reforms, are picking up political support.
* A tax on financial transactions (sometimes called the "Tobin Tax" for economist James Tobin), which could finance a large scale federal jobs program, would slow down the speculative "casino" and put a share of the
cost of fixing the economy onto those that broke the economy in the first place. Several members of Congress and British Prime Minister Gordon Brown are now publicly advocating for this.
* "Too Big To Fail" is Too Big. Momentum is growing for proposals to break up the large financial institutions, to ensure that taxpayers won't be put on the hook next time their gambling goes bad.
South African Anti-Eviction Activist
Saturday, Nov 28, 12:00 - 2pm
Northside Action for Justice offices,
Edgewater Presbyterian Church building, 1020 W. Bryn Mawr, 3rd Fl
Ashraf Cassiem, an activist and organizer from South Africa, has been helping thousands of tenants defy banks and resist evictions, water privatization and other human rights abuses.
Ashraf will join us for a conversation about tenant organizing, including strategies and tactics. He'll talk about the tremendous work being done by tenants in Cape Town, South Africa, in the name of Human Rights, (housing, water, land).
He's helped inspire some great work already:
Last Tuesday NA4J joined tenant Lenise Forrest, Cabrini residents, STOP, and the Coalition to Protect Public Housing to form an eviction blockade at Lenise's Cabrini rowhouse. There were so many people, and enough press, that the sheriff's deputies did not show, (as they had announced in an eviction notice served 2 weeks prior). CHA has now stated that they will work with her, as they should have already. This wrongful eviction is at least stalled for now, and we will send an action alert to you all should we need to go to the CHA office, (as we went to HUD to stop the Bledsoe Family eviction).
You can read more about this story at:
http://trueslant.com/megancottrell/2009/11/16/at-the-end-of-her-rope-cabrini-green-resident-faces-eviction-tomorrow/
http://trueslant.com/megancottrell/2009/11/16/community-will-try-to-stop-lenise-forrests-eviction/
Please join us --bring friends and family in town for the holiday.
We'll be joined by Erica Bledsoe and Lenise Forrest--two fighting tenants who stood up and said, 'No more, this is my home!' They know that each time we fight for one home, we make it harder for them, (banks, HUD's outsourced management, etc), to take the next one--maybe yours.
November 23, 2009
The Showdown Continues
Dozens of NA4J members marched with about 4,000 labor, community, student and religious activists at the October 25-27 "Showdown in Chicago" protest of the American Bankers Association.
As a result of these actions, the "bailout bandit" banks have been pressed to renegotiate hundreds of mortgages, preventing evictions. But they are still eliminating jobs and forcing people from their homes, all the while planning to give themselves record bonuses.
The showdown must continue.
Stay tuned for further actions.
November 22, 2009
Jobs, Jobs, Jobs!
Unemployment is at a 26 year high, meaning more than 20 million Americans out of work, and communities of color the hardest hit.
Several organizations have been raising the cry for a national jobs program for months, and labor unions, who have been deeply involved in the fight for health care reform, have begun to pick up the demand for millions of good new jobs.
NA4J, of course, has been part of that push. We need action for jobs at the national, state and local level.
Nationally, NA4J proposes a new version of the WPA, CCC and CETA - federal hiring programs that put people to work rebuilding our society. Such a program could be funded by a financial transactions tax and other taxes on the wealthy that made a killing while wrecking the economy.
Locally, entities that benefit from public subsidies (like the Target being built at Wilson Yards) should give community residents first crack at jobs, pay a living wage and respect the rights of workers. (80% of voters in the area around the Wilson Yards agreed with this policy).
Several organizations have been raising the cry for a national jobs program for months, and labor unions, who have been deeply involved in the fight for health care reform, have begun to pick up the demand for millions of good new jobs.
NA4J, of course, has been part of that push. We need action for jobs at the national, state and local level.
Nationally, NA4J proposes a new version of the WPA, CCC and CETA - federal hiring programs that put people to work rebuilding our society. Such a program could be funded by a financial transactions tax and other taxes on the wealthy that made a killing while wrecking the economy.
Locally, entities that benefit from public subsidies (like the Target being built at Wilson Yards) should give community residents first crack at jobs, pay a living wage and respect the rights of workers. (80% of voters in the area around the Wilson Yards agreed with this policy).
Who wouldn't trust the Drug companies?
Once again, Big Pharma, key opponents of major health care reform, have been caught cooking numbers on drug tests. This time it was tests on Zetia, a cholesterol-lowering drug.
Sort of like the tobacco companies that controlled the 'research' on smoking, these companies manipulate research and maintain their patent monopolies to keep among the most profitable sectors of the economy. The drug companies claim they need the excessive profits and the patent protections in order to develop new drugs. Of course, it's really about protecting profits, as there are other, more effective ways to finance drug research and development.
PS: Big Pharma spends more on marketing drugs than developing them.
Sort of like the tobacco companies that controlled the 'research' on smoking, these companies manipulate research and maintain their patent monopolies to keep among the most profitable sectors of the economy. The drug companies claim they need the excessive profits and the patent protections in order to develop new drugs. Of course, it's really about protecting profits, as there are other, more effective ways to finance drug research and development.
PS: Big Pharma spends more on marketing drugs than developing them.
November 05, 2009
Protest CTA Cuts & Layoffs
Protest CTA Rate Hikes, Cuts & Layoffs!
Thursday, November 12, 9 am
Before the CTA Board Meeting
CTA Headquarters
567 W. Lake St.
For directions click here
For more info or to endorse call 773-463-0311
Endorsed by Citizens Taking Action (ctariders.org)
On November 12, the CTA Board is planning to pass the 2010 budget. The CTA is threatening to raise one-way fares to $3, a 33 percent increase. The 30-day pass would now cost $110, a 28 percent increase. Free rides for seniors are being threatened. The U-pass would go up over 20 percent. Drastic cuts in train and bus service are being proposed. 1,100 jobs are on the chopping block.
Join us on the street for a protest before the CTA board meeting. Bring your signs and voices of protest. Working people shouldn’t have to pay more for transit, especially during the worst economic crisis in generations! The money exists to stop the attacks on transit. Together, we can stop the rate hikes, cuts & layoffs!
No fare hikes! No service cuts! No layoffs!
Money for Transit, Jobs, Health Care, Housing & Education, Not Bank Bailouts & Endless War!
Thursday, November 12, 9 am
Before the CTA Board Meeting
CTA Headquarters
567 W. Lake St.
For directions click here
For more info or to endorse call 773-463-0311
Endorsed by Citizens Taking Action (ctariders.org)
On November 12, the CTA Board is planning to pass the 2010 budget. The CTA is threatening to raise one-way fares to $3, a 33 percent increase. The 30-day pass would now cost $110, a 28 percent increase. Free rides for seniors are being threatened. The U-pass would go up over 20 percent. Drastic cuts in train and bus service are being proposed. 1,100 jobs are on the chopping block.
Join us on the street for a protest before the CTA board meeting. Bring your signs and voices of protest. Working people shouldn’t have to pay more for transit, especially during the worst economic crisis in generations! The money exists to stop the attacks on transit. Together, we can stop the rate hikes, cuts & layoffs!
No fare hikes! No service cuts! No layoffs!
Money for Transit, Jobs, Health Care, Housing & Education, Not Bank Bailouts & Endless War!
November 01, 2009
Misconduct complaints increase
Misconduct complaints against Chicago Police officers increased by 19% in the past year according to the Police Review Authority.
Complaints have increased to more than 900 per month during the past quarter.
Complaints have increased to more than 900 per month during the past quarter.
Will Alderman Allen become a TIF reformer?
Hard to believe, but the Mayor's abusive and dishonest use the Tax Increment Finance (TIF) program and mismanagement of privatization and the city budget have led even usually compliant Aldermen to make some peeps of protest.
Alderman Tom Allen of the Northwest side has proposed renaming TIFs the "Over Tax Fund".
Given the refusal of most Aldermen to challenge the Mayor's dishonest portrayal of the billion dollars sitting in TIFs as magic money generated without tax increases, or the repeated abuse of a program intended to relieve blight and reduce poverty into a slush fund for politically connected developers and private institutions, even this mild questioning of the emperor's clothes is encouraging.
Is the anger from residents finally lighting a fire under elected officials?
Even relatively risk-averse groups like IVI-IPO have called for a moratorium on any new TIFs. Mike Quigley won his seat in Congress partly due to community support he won by questioning TIFs.
Alderman Tom Allen of the Northwest side has proposed renaming TIFs the "Over Tax Fund".
Given the refusal of most Aldermen to challenge the Mayor's dishonest portrayal of the billion dollars sitting in TIFs as magic money generated without tax increases, or the repeated abuse of a program intended to relieve blight and reduce poverty into a slush fund for politically connected developers and private institutions, even this mild questioning of the emperor's clothes is encouraging.
Is the anger from residents finally lighting a fire under elected officials?
Even relatively risk-averse groups like IVI-IPO have called for a moratorium on any new TIFs. Mike Quigley won his seat in Congress partly due to community support he won by questioning TIFs.
Highest vacancy rates ever
The US Census Bureau reports that, in the Midwest and across the country, housing vacancy rates have reached record highs -- especially for rental units. Figures were not broken down by city or community, but community groups on the North Side have also seen a significant rise in vacancies -- in both condo and rental buildings.
Curious, that there's been virtually no news coverage of this, given the pressure from the real estate industry to actually increase the rental vacancy rate with tax giveaways that will do little to help the housing crisis or the economy. (The Realtors routinely get news coverage of low vacancy rates.)
If tenants and tenant advocates understood the reality of high rental vacancy rates, they would have a stronger hand in negotiating with landlords over affordability and quality of housing. That makes now a good time to press for pro-tenant policies and practices.
Curious, that there's been virtually no news coverage of this, given the pressure from the real estate industry to actually increase the rental vacancy rate with tax giveaways that will do little to help the housing crisis or the economy. (The Realtors routinely get news coverage of low vacancy rates.)
If tenants and tenant advocates understood the reality of high rental vacancy rates, they would have a stronger hand in negotiating with landlords over affordability and quality of housing. That makes now a good time to press for pro-tenant policies and practices.
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