-- 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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On the bright side, this includes Fred Klonsky.
Awe. And I’m surprised he wasn’t on the Venezuela trip. But check it out: He now favors prop tax cap! Well, for his own neighborhood at least: https://preaprez.wordpress.com/2019/07/31/taxing-sylvia-gonzalez-out-of-her-logan-square-home-drives-gentrification/
These people never want to pay for anything themselves. Even the public-servant-of-the-six-figure-income-with-full-benefits variety.
There are people who ferociously represent ALL taxpayers in a drive to hold the government accountable. They’re called “conservatives” and they don’t exist in Illinois anymore.
…and I’m guessing at least half of the people quoted in the article continue to vote for Democrats and will vote for the Democrats wherever they move to. Hence, no sympathy from me.
At least half? How about 100%
A house valued at $330k in central Lake County would have approximately a $13,000 property tax bill. Property taxes have to double in the City before I am even interested in stories about the plight of City residents. Also,they voted for this situation.
“Gonzalez continued, saying, “Over here, we used to have [another neighbor]. She sold. She went to Berwyn. … You see that fence over there with the pillars and the gates? [That neighbor] moved and went to Mexico. … A cousin of mine lived in that gray house — she couldn’t afford it anymore, moved to Berwyn.”” Hey buddy, neighborhoods change . The working class place I grew up had a major influx of new residents of questionable immigration status from all corners of the earth. And as a result of the newer, poorer residents literally flooding in during the late… Read more »
Isn’t that the challenge with these articles? They offer interesting anecdotes, but really don’t substitute for empirical data. Casting aside the less than great financial choices the homeowner you cite appears to have made, I do think there is “something” to the article, however. The tax increases mentioned would be significant to most middle class families, including to those who paid off their mortgage in fifteen years, and it does give rise to asking whether these kinds of increases are prompting migration out of Chicago and Illinois. My instinct is to say yes. On a personal note, I think the… Read more »
Yes, tax increases surely drive people out. But these particular homeowner’s taxes went from $3,700 to $6,000. A $2,300 increase, or roughly $200.00 a month. Don’t get more wrong, a $200.00 a month increase in taxes is still a $200.00 a month increase, but, for a family that has lived in the same house for 30 years, it should be manageable. But these homeowners are still paying $1,000 P&I every month on a property they bought 30 years ago, and that most recent mortgage is from 2015! They’ve committed themselves to a 55 year mortgage on a property they bought… Read more »
Debtsor – your arguments are unassailable. And while this family bought a horrible loan product, the responsibility is theirs and theirs alone to make sound financial decisions. Lack of financial literacy is a causality of our educational system, where the social justice narrative prevails over pragmatic skills.
I still think the tax increases are a problem. For someone making 60 thousand a year, it is a lot. And if old enough to project to retirement in the future, the increases and the possibility of even more increases motivate people to move.
Some indeed caused their own problems, but others did not. We hear lots of sad stories by phone and email. People living on SS only, for example, who say they simply don’t have the money to pay the increase, people skipping their IRA contribution to pay taxes….
At least in Cook County, a household living on only SS would get the senior freeze exemption, which is very significant. I’ve seen $8,000 and $10,000 tax bills reduced to $2,000 because of it.
As we all know, in this state, the taxes are out of control. And most people voted for the same politicians who raise their taxes. and it’s been this way for a long time. Anyone with any tiny bit of financial responsibility should have known increases were coming and should have been prepared for them. None of this is a shock to anyone.
As part of my job, I see the finances for people from all walks of life from all over the Chicago area. And the one thing that sticks out for me among the middle class is the debt loads that they have voluntarily undertaken. Car notes, large mortgages, credit cards, student loans, and personal loans. It’s insane. Illinois is an expensive state with high taxes, which SHOULD mean that the quality of life for middle class families is less than surrounding states. Especially with all the debt. It means households should be buying american cars not expensive imports, it means… Read more »
Seems few people even have the most basic grasp of economics-or even adulthood-anymore. The mantra used to be “live within your means”. Yet, stories like this show how much that has been lost on most folks.
Great homework, debtsor! They’re complaining about increased taxes, but they’ve already cashed out well over $100,000 in refinancing value!
I think we all agree that property taxes are stealing everything we have, but in this case they should probably not protest too much.
And btw, the type of fiscal constraint you are mentioning — that’s very passe in these days of conspicuous consumption. I would NEVER mortgage a home in declining Illinois just for cash consumption!
They cashed out the original $100,000 and then another $100,000 on top of that. The moron borrowed herself out of her own home and wants me to cry for her because the taxes went up a little.