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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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Seem in violation of federal law which requires creditors, including RIP, to issue 1099-C’s to patients with forgiven debt.
Do we know for sure that these people won’t receive a 1099-c? These people may be in for a bit of a surprise. I agree with you that this should trigger a taxable event although I doubt the people that receive one pay much if any federal taxes.
You’d be shocked how few people pay medical debt. Many people don’t even try to make the payments. And anybody with medical debt on their credit report has income too, enough to not qualify for medicaid, because medicaid doesn’t have co-pays….so they could in theory pay the lab or physican co-pay. But they just don’t. The CFPB estimates upwards of 20% of people can’t be bothered to pay the $50 or $100 co-pay.
EXCEPTIONS to Cancellation of Debt Income: 1. Amounts canceled as gifts, bequests, devises, or inheritances 2. Certain qualified student loans containing loan provisions for cancellation based on length of employment in certain professions for a broad class of employers 3. Certain student loan discharges after December 31, 2020, and before January 1, 2026 4. Amounts received or forgiven under certain student loan repayment assistance programs 5. Amounts of canceled debt that would be deductible if you, as a cash basis taxpayer, had paid it 6. A qualified purchase price reduction given by the seller of property to the buyer The… Read more »
I think they mean gift in the sense of an inheritance, bequest or devise, not a gift from Cook County. At best they could consider it a public benefit which is not considered income, and therefore not taxable.