-- 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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This plan simply dumps the CPS pension financial problems and bad decision making, past and future, on the rest of Illinois citizens who have no representatives in decision making processes – very democratic. While they are at it, why not add Chicago Police and Fire pensions as well? They are in worse shape than CPS.
Until this nasty State, City and County go bankrupt, the only sensible choice is to leave. I was hoping that after an entire Republican sweep in November, a national law allowing for municipal and state bankruptcies would be passed. Now that Donald is melting, I am not so sure. Anything short of bankruptcy will not solve the problem.
Our illustrious leaders wouldn’t be wanting to deceive us again, would they? Is this proposed five percent increase for individuals based on math or based on playing games with numbers? For the former, the new rate would be 4.95% X 1.005 = 4.975%. For the latter, it would be 4.95 + 0.50 = 5.45%, aka an increase of over 10%. The former is, once again, abusive to the taxpayer, who already has a huge tax burden living in IL. They haven’t invented an adjective for the latter. Of course, instead of either option, IL should be lowering the taxpayer burden… Read more »
So where should they reduce spending? They are already running at a 4 to 5 billion dollar deficit by shorting the pensions every year. So before lowering taxes you need to cut enough spending to divert that 4 or 5 billion and then find additional spending to cut in order to cut taxes. The voters will need to elect a governor and GA that promises these cuts.
Oh, and to answer you question, the rate would move from 4.95 percent to 5.45 percent. The longer we wait the higher the tax increase will be. Voters choice.
Remember the last “temporary” income tax hike that is now permanent? I know there are a lot of gullible taxpayers out there but fool me once shame on you. Never again.
So, let’s summarize: $29K/student is not enough for Chicago. So, make the state liable for the Chicago school pension by merging it with TRS. Tier 2 was a great victory, not a huge problem as widely reported that was shoved through at night with no understanding whatsoever. Raise the income tax “temporarily.” Who could possibly have a problem with that? After all, no less than John Cullerton likes it ; )
Apparently Mr. Cullerton does not believe the rate of Illinois exodus is high enough.
He wants YOU gone. Don’t you understand, deplorable? He can’t stand breathing the same air as you.
Temporary? Just like once the toll roads are paid for, they will end tolls. The only thing that will happen is the tax will increase. How about taxing pensioners?
How about spending less, getting rid of sanctuary city expense (your only using it to make the out migration look a little better), making pensions market competitive, no free abortions (if you want to help set up a foundation) cut back on useless regulations that kill small business and require legislative raises to be approved by taxpayers.
All they care about is making it legal to kill babies and illegal to protect yourself from them.
Them killing some of their babies might make it less necessary to have to defend ourselves once they grow up though
They already changed pensions to be so low that some may violate safe harbor rules in the near future. You can’t change the contracts for existing members so I’m not sure what savings you think are out there.
I am afraid that this whole pension issue Is a faite acomplii , the hard fact is the pensions are owed nothing will change that. The people and businesses are leaving. We need to stop digging the hole Deeper, cut spending and take those funds to support and pay down the pensions. No more out of control pensions. The alternative is terrible for ALL parties and the continued destruction of this state, their will be no Stopping it. Increase any taxes more and the exodus becomes faster, no one will bail Illinois out of this mess done by people who… Read more »