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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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from yesterdays Crain article/ per lord Martwick——“Either way, the proposal must guarantee property tax relief in the way the Fair Tax didn’t, Martwick said. “When you look at people leaving the state, the vast majority are middle class people,” with high taxes on their homes a prime reason. To be successful a new graduated income tax plan must provide property tax relief and deal with the pension problem, he said.” So, is this hinting that in 2nd go around for “Fair Tax” the machine is going to throw chump taxpayer/ home owners a bone and now Fair Tax will somehow cover… Read more »
“Lower property taxes” – I thought that Property Tax Relief Tax Farce, er, Task Force, said there was no cure?
I hope they pass it. I am out of Illinois, and want my kids to move out.
Our kids left already – education and taxes drove them out. Thank goodness!
Give the State of Illinois one last big KISS GOODBYE and do not forget to give it the Finger on the way out. This is the last nail in the coffin for many poor honest hardworking taxpayers’ families.
What we need is for those old time religious revivals from 150 years ago to make a come back and at least chip away at our moral bankruptcy.
Some years ago the Federal Government enacted what was known as “Alternative Minimum tax.” The tax was targeted to a few wealthy individuals with the promise of “this will only affect a few very wealthy individuals.” Time went on and inflation caused a situation where a lot of individuals in the middle class were to be affected by this alternative tax. JB and the rest recognize this and while your rates might be lower under the plan initially as time passes inflation will force the middle class into higher rates if history is any guide. Be careful what you wish… Read more »
Spot on — its how they sold the federal income tax in 1913. Only a few rich people would actually pay it……..
Correct. The tax brackets in the 2020 Fair Tax were not indexed for inflation. $250,000 in 2020 is worth less than $220,000 today. That’s a huge drop in just two years. All the other tax brackets were impacted as well.
Without a constitutional guarantee that includes inflation indexing (among other things), this is a non-starter.
Robert Martwick is the very worst of IL Democrats. I fully expect him to be swept up in the Madigan/Burke FBI investigation. Martwick is another property tax attorney who makes a living jacking up property taxes and then appealing them downward to the fellow Democrat cook county assessor. This corruption has been the Chicago Democrat machine’s lifeblood for the past 20 years and I suspect that most of the property tax lawyers/politicians are caught up in this organized criminal activity. If you have ever met Martwick in person you’ll discover that he is a weaselly, slimy suck up and wont… Read more »
Of course they will take another bite at that apple. Democrats know they messed up getting that passed. All they need (needed) to do is put the proposal back on the ballot. They also then need to pass the corresponding tax rates. This time though, they need to put up two different scenarios based on the outcome of the amendment. If amendment 1 passes then here are the tax rates for each bracket. Think 8 or 9% for the top bracket, 7% for the next one, 4.9% and below for the remaining or a flat tax increase of 6% for… Read more »
Except it’s not a flat tax for everyone.
Retirement income isn’t taxed in Illinois, and it’s not likely that public employee unions and their members receiving pension payments are going to volunteer to replace their current 0 percent state income tax with a 6% dig into their monthly checks.
Not even sure if making such a change would be legal in Illinois – can’t reduce or impair public employee pension benefits.
No one dreams of retiring in Cook County….
They will carve out public pensions vs private ones. The IL Supreme Ct will rule it “constitutional”
Why do we need to increase the flat tax? JB has been bragging about the state’s financial prowess for two years now. For him to go back now and say he’s going to raise taxes on everyone regardless completely counters his messaging on the state’s fantastic financial situation. It also forces legislators to go on record for a tax hike. It’s also puts the kibosh on any presidential aspirations. Bullying people into a tax hike ain’t gonna play in Ohio and Pennsylvania.
If he didn’t have the balls to do that in 2020, he won’t do it now.
That’s why I don’t think it will happen while he is in office. You’ll notice my comment stated “probably not anytime soon”. Do you really believe democrats won’t keep winning in Illinois? As many have noted it’s only a matter of time. JB can deny it all he wants but the state will need more revenue and they will come knocking.
Of course, none of this stops the legislature from passing this a so they can get more money for the oh so many initiatives they have planned.