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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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“In other words, a somewhat higher tax rate coupled with higher exemptions can protect our lowest-income taxpayers, whether retired or not.” This is definitely a possibility. Expect a higher tax rate with higher exemptions. The GA can claim it raised revenue while protecting the “most vulnerable” taxpayers. It essentially gives legislators a two bracket progressive tax. As far as the authors other idea of taxing retirement and SS benefits, that is not going to happen without a true progressive tax. I believe the fear of taxing retirement is the number one reason that democrat voters voted against the amendment. The… Read more »
No – the answer is to reform pensions. This cannot be kicked down the road anymore. In his quest for totalitarianism, Pritzker could instead go down as the best governor in history if he could manage pension reform. Democrat or Republican, I don’t care – just get it done. The taxpayers know it is needed, Wall Street knows it is needed, and the pensioners know it is coming. Illinois is on life support at BBB- with a negative outlook. Really don’t think raising taxes will help – unless helping Indiana get more residents is the goal.