-- 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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The huge tax assessment increases in Chicago to generate more property tax revenue are due to the City of Chicago not taking action to significantly reduce its huge bloat. This bloat is the result of continually and callously mismanaging taxpayer money. This phenomenon should be painfully obvious to very many people by now.
Raising assessment values doesn’t increase property taxes for the overall group of taxpayers. If everyone’s value went up 10% that doesn’t mean property taxes are 10% higher. That’s not how they work.
Generally, if your property assessment increases, your property taxes will subsequently increase. There may be a small percentage of cases where that doesn’t happen.
If your property tax assessment increases more than the overall tax base then yes your property taxes will increase from the change in assessment. If everyone’s assessment increases by the same percentage then no automatic property tax increase. Assessments are used to determine your share of the total amount to be collected. If your assessed value rises at the same percentage as the overall value then nothing changes. This of course changes if they actually agree to raise overall taxes. However, that doesn’t require your assessed value to increase at all. So generally, if your assessed value increases that doesn’t… Read more »
It’s spelled BANKRUPTCY
Almost all of the extra tax money is going to fund pensions. Get used to it taxes will keep going up, and up. Pensions are growing like a cancer and already has destroyed the quality of life for so many people.
PPF is rejoicing.
People like me realized I made a smart financial decision voting with my feet and leaving Taxistan over 20 years ago.