Detroit CFO says higher taxes wouldn't help city
DETROIT (AP) — Detroit's chief financial officer says raising taxes isn't an appropriate remedy to fix the bankrupt city.
John Hill continued his testimony Friday at a trial that will determine whether Detroit emerges from the largest public bankruptcy in U.S. history. The trial in front of Judge Steven Rhodes began Tuesday and will last for weeks.
Hill says Detroit residents and property owners already are "highly taxed" and the city still is suffering from long-term economic problems. He sees no benefit in raising taxes.
Detroit's plan to get out of bankruptcy would cut $12 billion in debt to about $5 billion. Many retirees would see a 4.5 percent pension cut. No tax increases are planned.
City employees and retirees have signed on, but bond insurers facing huge losses are opposed.