-- 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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Yeah young earners in Illinois are being screwed over big time subsidizing retirees not paying taxes. But govt employees live their entire working life with daily dreams of retirement, tax free, making this a non starter third rail in Illinois. The only reason Rahm even went near suggesting a retirement tax is because he is not up for election. There is a lot of revenue to be confiscated from retirees, go for it progressives. Some kind of progressives they are… The Minute they hear electric cars are cutting into their take… It’s “screw climate change”, let’s make a law guaranteeing… Read more »
This is pathetic, not only do our politicians have no understanding of economics they apparently haven’t even mastered 4th grade math. I believe average miles driven is 12,000 a year, average fuel economy is 23 miles per gallon so average consumption is 522 gallons a year. At the higher tax rate of $.44 that equals $230 in sales tax that the state is losing out on. How did they come up with a $1,000.00 registration fee to offset that. Are they assuming only rich people drive electric vehicles. I don’t have an electric vehicle but I just have to point… Read more »
But no taxing the sacred pensions???…State currently has 23,000 $ six-figure +$ const protected pensioned retiries and untold thousands more of the six-figure club soon to retire….how many of those folks even live in illinois nobody knows. What a joke!!!
What the sponsors of these increased taxes and user fees never factor in when calculating the increased revenue is how many people will move out of state because of the increases. Therefore, the revenue estimates are always overstated.
In the case of taxing retirement income over $100K, a greater percentage of upper-middle class and affluent retirees will be relocating, resulting in an even bigger difference between estimated and actual revenue generated.
“Can I also get a $100,000 tax exemption?” asked every Gen-X and Millennial.
That’s a fair thing to ask. If the first 100K of a retirees income is exempt from taxation, the first 100K of every taxpayers income should also be exempt. What’s fair for one is fair for all.
I agree that ideally all retirement income should be taxed on the same basis as other income, but right now all retirement income is completely exempt in Illinois. So the bill is a step in the right direction, even if it does not go far enough.
They just don’t get it. Time to leave for sure now. You really can’t say anything except it was only a matter of time before they came for the retirees