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Amid Protests, Daley Backs Down On Some New Taxes

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Amid Protests, Daley Backs Down On Some New Taxes

Proposed Property Tax Increase And Tax On Bottled Water May Be Ruled Out After Outcry

CHICAGO (CBS) ― Mayor Richard M. Daley on Wednesday promised to reduce the size of his proposed tax increases, in part because of a vocal and angry public reaction. A new tax on bottled water may be abandoned. As CBS 2 Political Editor Mike Flannery reports, one way Daley plans to cope is by delaying new hiring.

Angry homeowners hoping to block higher property taxes joined tavern owners and workers in the booze business hoping to block higher taxes on liquor at City Hall Wednesday. They protested with dozens of other targets of proposed new taxes before a City Council meeting.

Daley, a wily political veteran, did exactly what he's done before in similar situations: publicly promising to reduce the size of his proposed tax increases.

"Some don't like this, some don't like that," Daley said. "Every time you take out a revenue source, where are you going to pick up a revenue source?"

The mayor's original tax increase proposals set the stage for such a concession, by requesting about $25 million more than the city budget appeared to need.

Daley also indicates now that he will eliminate some of the city's more than 1,000 vacant jobs, delay several new programs and postpone for six months the hiring of dozens of new police officers. To limit further the tax bite on typical Chicagoans, the Daley Administration may raise new revenue from business on such items as signage and natural gas.

"I think we pay way too much," said Chicagoan Justin Cherry. "I think they should find a way to lower the taxes, really."

"Liquor, cigarettes. You can tax that," said Chicagoan Mose Shaw. "Not property taxes. It's high already."

"No one likes taxes. So, like anything else, you listen to 'em. And you get back.You go back to the drawing board," Daley said. "That's what leadership is all about. I'm not afraid of that."

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