Part 8/11:
The debate extends beyond Chicago, touching on broader economic policies affecting urban areas across the United States. Cities with high tax burdens are experiencing population declines, as affluent residents and businesses relocate to states with more favorable tax climates. This migratory trend diminishes the tax base, hampers economic growth, and complicates efforts to fund public services.
Making the case for increased taxation of the wealthy overlooks the reality that many of these individuals and entities are mobile. They can, and often do, leave if the cost of doing business or living in a city becomes prohibitive. This creates a self-defeating cycle where higher taxes lead to flight, which in turn shrinks revenues further.