-- 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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Something seems strange about the MN (32) and IL (30) income tax rankings. The study is based on a 55,754 median income, so MN’s effective income tax rate on that median would be 6.28%. Would’ve thought there’d be a much larger gap. Maybe because MN has personal exemptions 2x bigger than IL?
Most people don’t know the starting point for taxable income in MN starts at 1040 Line 43 vs Line 37 in IL. That means they get to deduct itemized deductions before determining tax liability. Not sure how that plays out overall, but guessing it lowers the burden.