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Chicago mayor rejects Uber's alternative tax proposal

FILE PHOTO: A screen displays the company logo for Uber Technologies Inc. on the day of it's IPO at the NYSE in New York

By Karen Pierog and Tina Bellon

(Reuters) - Chicago's mayor on Wednesday rejected an alternative proposal by Uber Technologies Inc <UBER.N> to tax ride-hailing services, accusing the company of trying to resist any type of regulation by stirring up racial tensions.

Uber in a statement rejected the mayor's claims, saying its plan was raising money for the city in a more equitable way by not increasing fees on lower-income communities in Chicago's South and West side neighborhoods.