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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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Chicago needs more tax revenue. They should just implement a transfer tax for ALL real estate transfers. They could then offer a credit in the same amount for all those that bought other real estate within Chicago if it was for the same or more value. If someone sells their 300k house and wants to move out of the city, this is one last time to collect money from these people. They can be upset all they want but since they are moving they are no longer a voter. It’s time we start to get smart about our taxes. Really… Read more »
Chicago already taxes both buyers and sellers in transactions.
https://therealdeal.com/chicago/2022/11/14/chicago-transfer-tax-hike-on-1m-plus-deals-hits-setback/
Chicago’s current transfer tax rate charges buyers $3.75 for every $500 of a deal’s value and seller’s pay $1.50 for every $500. The city enacted a transfer tax in 1974 and it comes on top of a state of Illinois transfer tax of 50 cents for every $500 of a deal’s value and a Cook County tax of 25 cents for every $500.
I’m thinking more in the 8 to 9 % range for those that don’t reinvest with another home in the city and/or state.
I get your point but an 8-9% tax would result in a lot of short sales, or, sellers just walking away, as they did in 2008 and beyond. The amount of destruction caused to the south suburbs and city of chicago by the foreclosures is incalculable. The tax would be counterproductive. It won’t stop them from trying, of course, but its a terrible idea.
My point is to start implementing taxes on people that won’t be returning and/or can’t vote. The only people that pay it would be those that are leaving the state. The ones that are taking their funds and purchasing another property wouldn’t feel anything. One last tax bill before they leave. You could even set up a payment plan for them.
PPF, if East Germany was still around you’d be working there. Perhaps a border guard at the Berlin Wall….
Wanting taxes to match spending is not the equivalent of Nazi Germany. Thanks for proving your ignorance. Pro tip: whenever you invoke Nazi’s as a comparator you lose the argument.
The city needs more tax revenue if they are not going to cut spending. This is just one more way to get that needed revenue.
PPF, your worldview has become more and more in vogue.
Taxing people just passing thru is now de rigor. It started with toll roads and expanded to other services. For example, hotel room tax and rental car tax. It’s great that these people have no say in the situation other than avoiding travel.
You want to take it even further with the equivalent of an exit tax. The example I compared you to was Communism not Nazism.
Chicago’ new slogan, “Come for the Beautiful Lake, Leave to Avoid the Crime and Taxes.”
Another way to punish the successful….
This “Bring Chicago Home” real estate transfer tax doesn’t add a tax to every dollar above $1 million, it taxes the entire amount if that amount exceeds $1 million. That’s simply a piss poor way to structure any tax.
If you want to tax million dollar properties more, then charge a different rate for every dollar above that threshold, like a graduated income tax. This should be shot down on principle alone.