Why not continue the charade? It most definitely is working.
You know the saying: if it ain't broke...

If somebody owns property in Chicago and wants to sell before taxes go up there comes a time when it becomes too late to escape the tax because potential buyers start factoring that in.

This will continue as long as other countries allow it by continuing to use the us dollar as the world reserve currency. Until that ends, this **** will continue.

Taxes will kill the housing market in Chicago. Try and sell now that people know taxes are ramping in Chicago. What about section 8 rents(gov supported housing rebates) in Chicago, will they increase if rates go up in Chicago?

60% ? Maybe they can phase that in? 59% this year and 1 - 2% next year.

When the markets blow up that won't help the pension shortfall either.


I am lucky. My real estate taxes are only going up 16%. (outside Philly)

I think this is what general public doesn't understand...how much $ has been pulled forward and spent over the past 2 or 3 decades to ramp GDP, ramp asset prices, ramp tax revenues while maintaining low fed tax rates.

Only trouble is we are now running into the air pocket where all those borrowed funds at muni, state, fed, corporate levels should be. The fraud is now exposed as we are forced to double, triple down attempting to pull ridiculous amounts of tax revenues from further and further ahead in the future to cover the holes.

Classic ponzi inflection moment muddled by the Fed's ability to "create" money to cover all liabilities (really, seems all liabilities worldwide due to the interconnectivity of the financial system)...oh but the side effects are like those of Chemo and the treatments success likelihood seems low due to cancer has metatasized and moved throughout the system. This is typically when a hospice worker would be called in but instead the Fed (at the behest of?) will stop at nothing to keep the patient "alive"...even if the brain function has ceased.

One post note - taxing and spending vs. not taxing and spending to cover this will both have similiar negative GDP effects. Please don't think that by not taxing GDP will be free to rise. You must consider that the other side of those unraised taxes are huge swaths of our population (some good, yeah, some sloths) who plan on this future income. Without it, they will not be travelling, not be buying new cars, will downsize or rent their home, and the least will eat dog food instead of human food. I am not advocating tax / not tax but simply pointing out the end effect is much lower GDP growth either way...the check is coming and isn't good for anybody.

A lot of big cities are only standing because of accounting games.

No way would I be in one or buy into one now, no way.

You are going to get killed.

Yep, there's a gap to fill alright...........

"What about section 8 rents"

Someone on section 8 pays what they can 'afford' and the government pays the rest. So the increases don't affect the section 8er.

So a couple points that confuse me- with housing/banks blowing up and the gov't taking them into receivership, if a house note is created out of nothing and collateralized by nothing, will the gov't ultimately say (as a new "bailout"), "Okay, you that managed to do whatever it took to keep your house note and property taxes current, you get a pass, you own it free and clear (and your equity will be the "new" market value ie losing another 20%) as of today. No more payments due. Those of you who defauleted, sorry, you're SOL. AND all future purchases (cars, homes, etc.) will carry a 50% deposit if you wanna finance. Enjoy" as the final solution? As long as I pay my property taxes, is there a futue in home ownership? Or are these new property taxes going to be the "evictor" for the "common man"?

Second- if the banks are about to blow, why not drain my 401Ks, IRA, retirement money NOW and convert to gold or whatever? How can I be penalized for early withdrawl if pensions are already being raided? Want me to pay a penalty... why not talk to my attorney? Want me to pay, go garnish my wages... wait if you're raiding my 401k, isn't the gov't already doing that? I don't see how I can penalized for taking what's mine NOW when it is and will be raided and taken later....

Taxes are already high in Cook County - some of the highest in the country. Good luck with that Chicago. Lets assume that Chicago City has lower taxes than I am used to seeing for other Cook County deals. A $400,000 condo that now would have taxes of 10,000 a year would then go up to $16,000 a year. Most all of this will be reflected in what someone will pay to buy that condo. Say 80% of the tax increase. Well at 5% interest rates on 30 years that condo just became worth $75,000 less. Good luck with this. We are so ****ed.

Time to list the amount of those individual pensions. That will get a lot of tax payers*****ed off as they see were that money is going.

http://www.pensionjackpot.com

Come on now! Sure, a 60% increase is not good but it's not the same as a 60% property tax rate. Below are some Chicago numbers that need to be verified. In the first example, a 60% increase would be about $350/month more in property taxes and the second example would be about $115/month more. I wouldn't like it one bit, but I don't think I'd walk away from my house because of it ... at least not right away.

Estimate of real estate property taxes paid for housing units in 2008:

This zip code: 4.0% ($6,440)
Illinois: 2.6% ($2,285)

Median real estate property taxes paid for housing units with mortgages in 2008 in Chicago: $2,982 (1.0%)
Median real estate property taxes paid for housing units with no mortgage in 2008 in Chicago: $2,253 (0.9%)

http://www.city-data.com/zips/60610.html

The problem is that the 60% increase is not the last one.

these things are still to come and QUICK in a lot of places.

gvt layoffs
pension cutbacks
long long term high unemployment
rollover demand through the roof and if rates even inch up you are doomed
flight from cities increasing - will happen - people only came for the jobs
housing falling
more tax/fee increases on property city services gas ,etc. etc.

No thanks I will pass.

That's a real shame because the real estate market in Chicago has recently been ON FIRE! Things are really moving there, at any price the seller asks! Oh, wait a minute, that was 2006. There is not a deader market in the country than cook county - no one can/will sell - basically, there is no real estate market in Chicago, so don't worry, higher taxes won't impact the market since there is no market!

Quote:

Come on now! Sure, a 60% increase is not good but it's not the same as a 60% property tax rate. Below are some Chicago numbers that need to be verified. In the first example, a 60% increase would be about $350/month more in property taxes and the second example would be about $115/month more. I wouldn't like it one bit, but I don't think I'd walk away from my house because of it ... at least not right away.

You might not walk away from your home because of a $350/Month payment increase, and a lot of others on this forum might not, but I would venture a guess that 75% of the people in Chicago can not afford a $350/month increase in their house payment.

Assuming you are talking about a home at or around median value, I would think that a $350/month across the board increase in house payments would create another foreclosure boon in the Chicago Land area.

I'm pretty sure it would here in the Dallas area.

I am currently appraising a 26,363 sq.ft. shopping center in a Cook County suburb of Chicago. 2009 R.E. taxes payable 2010....$225,473.29 or $8.55/sq.ft. annually. Those tenants must love their NNN leases! This is a $30,000 increase over 2008 paid 2009, or $1.13/sq.ft. more for each tenant to pay

But won't the Federal govt just nationalize these pension plans and take them off Chicago's books?

Chicago is probably hoping to extract the needed funds from the rest of this hapless state. That is why they pulled out all the stops and the dead votes to keep a conservative Downstater out of the governor's office this past election.

Detroit 2.0

Good thing there is no inflation per Ben Bernanke on 60 minutes.