Chicago Plans $1.2B Corporate Tax Hike Amid Fiscal Mismanagement

Several U.S. states are grappling with tax policies that disproportionately impact the middle class, with Illinois cited for its particularly high property taxes that weigh heavily on middle-income homeowners. In Colorado, Democrats are pushing ballot measures to increase taxes to fund expanded public programs such as taxpayer-funded school lunches, which would codify benefits temporarily expanded during the pandemic. However, there is significant opposition within Colorado against these tax hikes, especially the proposed graduated income tax, which critics argue would harm most residents except the wealthiest and stifle economic growth. Research cited by opponents suggests that high tax rates, particularly graduated income taxes, may promote economic stagnation by penalizing the groups that contribute most to economic prosperity. This debate reflects broader national tensions between efforts to increase government spending on social programs through tax increases and the pushback from those who warn such measures could undermine economic competitiveness and burden families. Meanwhile, discussions around tax policy also echo historical themes of fiscal mismanagement and political trade-offs, as seen in the metaphor "robbing Peter to pay Paul," illustrating ongoing challenges in balancing government budgets and public needs.