-- Connecting the dots between our economy, government and business --
By Wirepoints’ Ted Dabrowski and John Klingner.
By John Tillman of the Illinois Policy Institute.
The company’s long-term pension obligations, which have been underfunded by more than $1 billion for years, would be covered by the federal Pension Benefit Guarantee Corp., which has footed the bill for nearly 5,000 failed employer pension plans since its founding in 1974.
“Because most states no longer have an estate tax, there is an incentive for some wealthy people to structure their assets to avoid paying it in Illinois…. Illinois cannot recoup revenue lost to tax avoidance by simply lowering its rate—the competitive rate is 0%. And although there have been recent calls to eliminate the tax because of its impact on some businesses, it is unlikely that the State can absorb the loss of $200 million to $300 million without other tax or structural changes to replace it.”
Attorney General Jeff Sessions blasted the roughly 200-page plan, also known as a consent decree, because of the court oversite. And he offered a full-throated defense of Chicago police, saying they must take the lead in stemming city violence.
“There is a misperception that police are the problem and that their failures, their lack of training, and their abuses create crime,” Sessions said. “But the truth is the police are the solution to crime, and criminals are the problem.”
Mayor Rahm Emanuel vowed Friday to confront Chicago’s skyrocketing pension payments “before the end of the year,” but he refused to say whether the solution he seeks will include $10 billion in pension borrowing.
The village’s current contributions don’t meet an actuarial level as required under state law and so it could face the diversion of state collected funds such as its share of local sales taxes and income taxes if sought by the funds.
Supporters of Susana Mendoza have begun circulating nominating petitions to get her on the ballot in the crowded race for Chicago mayor — but the Illinois comptroller still insists she’s only focused on the reelection campaign to keep her current job.
“There is perhaps an unintended sardonic reality to the City setting October 31, Halloween, as the day for City Council to vote on approving an extraordinary ordinance to deliver the desired 19.3 acres of priceless lakefront public park property (or more to come ?) to the Obama Foundation for 99 years for $10 dollars.”
People in Illinois and elsewhere are turning to the ministries amid frustrations over the costs of traditional health insurance and Obamacare’s mandate that everyone buy insurance or pay a penalty. Ministry members are exempt from that mandate, which will end after this year.
Even though New Jersey, Kentucky and Illinois improved in 2017, they continue to have only about one third of the money they need to pay retirement benefits. Minnesota, the only state with double digit gains, saw its assets grow to 63.3 percent, from 53.2 percent of its liabilities in 2016. South Dakota and Wisconsin’s retirement systems have more than what they need, while Tennessee, New York, Idaho, North Carolina, Utah and Nebraska are all more than 90 percent funded.
“Average Joe or Jane may not be familiar with all the specifics of the state’s multiple financial problems. But they have the general idea that disaster is already here and greater disaster lies dead ahead.”
Cook Political Report says Roskam now is likely to lose, and Hultgren’s race is a tossup. That leaves only Kinzinger safe.
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