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Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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I am actually fine with city income taxes.Chicago has voted to raise everyone else’s taxes while keeping their property taxes lower than much of the rest of the state. Chicago needs a city income tax so that don’t keep raiding everyone else. I would also like to see the city bring back the commuter tax so that workers are discouraged to go down to that shit hole. I have been working remotely for over 5 years and will never commute back there. The people that continue to live and work in Chicago supporting that corrupt regime need to pay their… Read more »
It is only money.
Shut up and pay your taxes.
Everyone ready for the Retirement Protection and Stabilization Act? This Act will allow the state to levy a 2% state tax on all income over $50,000 that will go directly into the state pension funds and your hometown to levy a 0.5% municipal tax on all income that will go towards your locally underfunded fire and police pensions.
Where’d you get this one from? And when do you think it’ll take place? I’m out as of 2021, suckers, haha – no one needs this abuse.
He closed his eyes, tossed a dart at the tax hike dart board, and that’s where the dart landed.
Remember when there were some economists peddling a statewide 1% special property assessment to pay pension? Imagine them doing that based on income too. If house assessment > X and income > Y, then pay tax.
https://wirepoints.org/chicago-feds-answer-for-illinois-pension-crisis-is-a-statewide-property-tax-wirepoints-original/
Well the state needs money to pay its’ obligations so I would imagine that it’s a possibility. Instead I think they will increase the income taxes and implement a transfer tax of 10% when you go to sell your home. If you purchase another home of similar value within Illinois then you won’t pay the tax. If you leave the state or don’t purchase another home then you are on the hook. The state has great powers to tax and is not afraid to use them.
nixit–completely agree and could easily see your pension tax idea as only one of an enumerable number of dedicated taxing possibilities. Passage of fair tax opens a pandoras box of taxing possibilities. But I think the only way a municipality could practically collect on a municipal income tax would be to piggyback on state income tax return. The state could be tacking on thousands of added mini taxes on your income tax based on your zip-code for the +600 pensions and insane 7,000 units of government, etc. A colossal accounting/ software task. Assume Mendoza would be in charge of bookkeeping,… Read more »
and once state allows just one city the ability to tax income then the ink won’t be dry before 100% of all the other crazy 7,000 units of government will demand same access to taxing income…guaranteed!!
In suburbia don’t forget a portion will have to go to pay the builder’s building the Apartment buildings in your suburban towns
You knew this was coming. What’s funny is that it was something staved off for years. The broke as$ northeastern libtard holes do this, and have been doing it, for years. Whatever they do, the Trump admin can’t agree (veto or convince the Senate to deny) to any bill that allows the 10 year lending from the Fed. There are far too many moral hazards and ridiculous can kicking going on there. Trump for the win!
I can see it now. A City income tax sold under some slogan like “it’s for the children” combined with some hoopla about it only being some low amount that only the rich will pay. Time goes on, inflation takes its toll and of course there will be other little pesky taxes tacked on to fund some new pie in the sky idea. Sales taxes are an excellent example of how these little taxes add up and have become just another onerous burden upon the Illinois’ worker.