-- Connecting the dots between our economy, government and business --
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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Well of course returns won’t match the most recent results. The only way to consistently reduce the debt is to increase state contributions. Taxes will need to increase. The state will need to start taxing services, retiree pensions, social security and IRA/401k withdrawals. They will need to offer the voters a choice, either a flat tax increase (maybe 6.95%) for all or a progressive tax to get the “rich” to pay their “fair share”. Maybe a real estate transfer tax for people that sell their homes and don’t purchase another residence in Illinois. This way they can get money one… Read more »