Rep. Allen Skillicorn (R-East Dundee) is calling for an audit of the Federal Reserve Bank of Chicago after its economists proposed a 1 percent property tax levy to help fund the state's pension obligations.
In a move that could cost Illinois property owners about 40 percent more over the next three decades, the Chicago Fed proposed increasing the property tax levy on the actual value of homes in Illinois. The tax increase would help to fund the state's pensions, according to the Federal Reserve.
Skillicorn has joined Rep. Jeanne Ives (R-Wheaton) and a number of other lawmakers to co-sponsor a resolution, HR1072, in response to the Chicago Fed's recent talk of tax increases. In addition, Skillicorn has introduced his own bill calling for an audit of the Chicago Fed.
Rep. Allen Skillicorn (R-East Dundee)
"I am co-sponsoring this resolution (HR1072) because we have to stop any and all property tax hikes," Skillicorn told the McHenry Times.
Skillicorn said the proposed tax increase is nothing more than legislators trying to fund their own pensions at the expense of Illinoisans.
"These Chicago politicians need more money and more revenue sources to fund their patronage jobs and gold-plated pensions," Skillicorn said. "The banks just want another revenue source so they can sell bonds and put Illinois residents deeper in debt."
HR1072 calls on Illinois representatives to oppose any new statewide property taxes since it would cause more residents to flee the state and will not guarantee a fix to the state's financial crisis.
"Such a proposal would, yet again, continue on the wrong trajectory without any guarantee that services will improve, the State's crippling debt will be paid, or any positive benefit will be realized; conversely, such a state-wide property tax would only cause homeowners to strongly consider leaving Illinois, as so many have already done in recent years," the resolution states. "Illinoisans deserve better than this."
Skillicorn said his proposed "Audit the Fed" bill would remove several exemptions that prohibit some auditing of the Fed put in place by the U.S. Government Accountability Office (GAO).
"The economic trio of the Chicago Fed offer three options as their only solution ... increase taxes, income taxes or property taxes," Skillicorn said in a statement.
"How about three of my own: restructure government spending, amend the Illinois Constitution to end the pension protection scheme, or have government employees contribute more to their retirement ... no economics required," he said.
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