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FinancialTax Swaps

Rahm's Promise

Cut the overall sales tax rate and broaden the tax base by including luxury goods. He estimates that this tax swap will lead to an increase of $15 to $20 million in the city’s coffers.

Rhetorical Nonsense

This has the feel of far-fetched fairy dust. The question our reviewers asked was if the city cut sales tax and then couldn’t get the cooperation of the State on the state tax changes what would happen? The answer that came back was not reassuring.

It turns out that a lot of our fair city’s revenue comes from sales taxes which are indeed the highest of any municipality in the country. So we wondered if you could really replace the sales tax with a flurry of luxury taxes and the answer was inconclusive. Our reviewers were curious how Mr. Emanuel planned to proceed because to cut city taxes without securing the changes needed from the state would be a catastrophe helping no one. They came to the conclusion that there was also no way to accurately imagine what this would save or cost without making a number of assumptions that were particularly chaotic. They meant this in the mathematical sense of the term, things changing radically based on a small variation in some initial condition or newly arising variable.

Possible Problems

Aside from the obvious problem of having to wrangle the state into position to have this have any chance of working there is the uncertainty of knowing it will work at all. Experts spar with real intensity over the effectiveness of every tax and in regards to a tax swap it gets downright contentious fast. Our reviewers were far from kind to each other in the process and some of the arcana involved was way above my pay grade and I like trolling through the federal ledger just to keep my legalese sharp.

Inter-Gov Affairs / Mayors StaffWBE / MBE Reform

Rahm's Promise

Decrease the burden on the minority-owned business enterprises (MBE) and women-owned business enterprises (WBE) in the WBE / MBE program and implement universal certification.

Rhetorical Nonsense

All of it. We found the promises to punish offenders especially galling since we do not know what zero tolerance and a ten year ban really mean in this regard. It just sounds like pure pandering.

Possible Problems

Our reviewers thought we should bring everyone up to date on the state of the law all programs had better NOT be in violation of before we could evaluate Rahm’s proposal. This led to use being able to say that based on the information in front of us we can’t know if Rahm’s plan as devised will help anyone. The details are crucial and there aren’t any…

Notes

Strangely when we scoured the 21st Century Commission here in Chicago we could not find the guiding principles his policy people claim will be guiding their work on MBE and WBE programs. Aside from that little detail, which is large we weren’t sure what to make of Mr. Emanuel’s plans in this area. Also, simply changing how the program works in such a vague way does not one thing to address the issue of front companies, which is what the present system is supposed to address.

EnvironmentGreening the Supply-Chain

Rahm's Promise

Rahm will “Green” Chicago’s supply chain, modifying its purchases to make them environmentally safe and affordable choices.

Rhetorical Nonsense

As written this policy aim is pure rhetorical nonsense.

Possible Problems

This is the sort of promise politicians make with boring regularity. It’s like being against killing dolphins. Even BP/AMACO has a green initiative. Corporate buzzwords all strung together do not a public policy make. This is especially true when there are less details here than shades of white on a plain white wall… it makes sense just wait for it.

FinancialReverse Auctioning

Rahm's Promise

Rahm will implement a reverse-auction system

Possible Problems

There is nothing problematic about this program. When the Mayor proposes something that is not out of some Lovecraftian nightmare he should be commended. Our reviewers thought it was an example of a solid reform of the procurement process. You should all read more about it here & here.

FinancialPaperless Transparency

Rahm's Promise

Rahm will eliminate waste and increase competition by making the procurement system paperless and transparent

Rhetorical Nonsense

This proposal is vague but it has no rhetorical nonsense.

Possible Problems

Designing a database of any sort is never a guarantee that it will not create as many problems as it seeks to solve but on the whole having a unified database is a good start to getting a handle on Chicago’s procurement system… such as it is right now.

FinancialChicago First Policy

Rahm's Promise

Rahm Emanuel will create a Chicago First Policy to assist local businesses to get city contracts and will direct procurement officers to favor Chicago companies will all other factors are equal.

Rhetorical Nonsense

This has the feel of pure rhetorical nonsense if only because here we are already into the administration and the words Chicago First have yet to cross the Mayor’s lips or the lips of any of his people. On the other hand there is a horrifying corporate entity that has the feel of a shadow cabinet already holding the name ChicagoFirst… but when they say it sounds like they’re starting here and will be conquering other cities like some terrifying game of Risk.

Possible Problems

It could become a private/public partnership that helps the private contractors more than the public sector and trust. But we simply do not know because we don’t have enough details to know.

FinancialPension Policy

Notes

Rahm is a Wall Street guy and he plans to cut pensions and he’s not kidding around even though he has no details. This could be because he plans to do this at a bargaining table. Only time will tell.

FinancialEconomic Development / Tax Policy

Notes

Many of Rahm’s economic development plans have a very corporate feel and boil down to some brand of privatization or the other. So when looking at Rahm’s policies to save the city money one should be cognizant of what that might really mean for the city. We also found that routinely the estimates of savings were not backed up by anything present in the plan. In fact where claims could be evaluated we never found the stated savings to be in line with any kind of responsible extrapolation of the facts we had in hand. A lot of what we discovered was that Rahm’s use of corporate language sometimes obscured outcomes that can only end in downsizing and privatization. Rahm also has a few tax proposals that are populous in tone and difficult to pin down as to how effective they would be or how the lost tax revenue would be made up with the new paradigm he proposes. We think it would be good for people in Chicago to just have a better handle on what our taxes are and how they work in general so we pass along this to help you weave your way through what Rahm and other candidate suggests.

EducationEducation Policy

Rhetorical Nonsense

There is nothing nonsensical about the real harm he has promised to unleash on our schools. That sounds biased but here’s who he hung out with BEFORE he got elected and then he hired a bunch of them. The reason why I KNOW he is engaged in ideological violence against all of us is because we already know what the best practices are in Chicago. Mayor Emanuel’s friends just can’t make an ideological profit off of it by shifting public resources into private hands.

Possible Problems

He advocates longer school days for kids, wants to have report cards issued on all schools and wants to bring Race to the Top to Chicago. He wants to pay for the idea by raising private money so that schools will compete with each other for the funding. What happens to the schools that lose and the kids in them? See how dangerous this is? I lose sleep over things like this. The thought of bringing the disaster that is Race to the Top to Chicago and make it our gold standard for schools should fill anyone who cares about actual education with pant-wetting terror. When you marry that idea with the idea of private donors funding that system; wherein schools compete for resources further privatizing our “public” school system, you should be reduced to near gibbering insanity.