-- 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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IMO as property taxes in Taxistan keep increasing there will be an avalanche of taxpayers trying to appeal their assessments.
Assessors are going to be in a tough spot.
This is why we need to get away from real estate as the main revenue source for taxing bodies. Some type of diversified approach like a small hard cap county income tax of 1-1.5% capped in exchange for lowering property taxes and to the same figure of 1-1.5% of value. One’s ability to pay the taxes are never looked at. The only tax needed for properties are police and fire. Every other tax on your property has something to do with a use tax. Your property does not go to school or the park or airport/etc only the occupants do… Read more »
Fred, they did just that in Michigan with the sales tax (not the income tax). It was to more equitably fund schools state wide. Believe or not, once upon a time the sales tax rate was only 4% in Michigan. They raised it to 6% and lowered the property tax rates — for a while. Now with inflation and home price appreciation people pay more in property taxes than before and they still have the 6% sales tax rate. Retired public school teachers in Michigan (most are gone by their mid 50s) are actuarial millionaires.
Nothing new about this. In PTELL counties the tax rate is set based on what was levied the year before. Any abatements/appeals/deductions such as homeowners/senior/disability/military disability/etc given to people just increases the tax rate for everyone. That is what was never told to people when we voted for ptell. Plus local taxing bodies can raise their levy by 5% or 1/2 of inflation whichever is less so they never get LESS than the year before.