-- 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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How about we hear about real estate tax relief before we do any kind of CTC. I haven’t heard a damn thing from Pritzker’s “task force” supposedly studying real estate tax relief. C’mon JB, give us an update!
Absolutely zero tax relief until we start actuarially funding pensions. Makes no sense to offer a tax cut when the state needs more money. No new spending until we have a true balanced budget.
The money is already there without raising taxes one cent. Instead of allocating the money to every welfare program under the sun like food stamps-cash welfare-subsidized housing-child care/even most Medicaid/etc. These people have been on some sort of government assistance for generations with nothing to show for it in GDP or employment numbers. There are truly those that need it but they are few in numbers. So give them a 30/60 or 90 day notice that the benefits will be eliminated and the money will go to fund the pensions. That is more than enough to fund the yearly costs.… Read more »
I’m good with that but understand you are talking about cutting 4 to 5 billion a year to come up with the difference. That kind of cut to welfare programs tends to cause people to squeal. The voters typically haven’t rewarded elected leaders for saving money but instead seem to prefer whatever new shiny program is being created. Until the voters are on board I don’t see those types of cuts taking place. Otherwise politicians will continue to make decisions on getting re-elected.
True. The cost for all the social programs excluding SS is way over $20T probably closer to $25T.
https://www.lexingtonlaw.com/blog/finance/welfare-statistics.html
https://www.heritage.org/welfare/report/understanding-the-hidden-11-trillion-welfare-system-and-how-reform-it
There is more than enough money but the transition will be painful. There are many jobs available for those on welfare but there is no hurry for pols to do anything for fear of being voted out if they cut any programs. That is the problem. More than enough money for pensions and tax cuts.
It’s the pensions, pensions, pensions! !!! Spending isn’t the main problem, although it is a problem. The size of our budget is in line with other states of similar size. IL has a $45B budget, PA has a $44.4B Budget, OH has a $43B budget. You can cut everything to the bone and more and while that would great (and I’d cut even more than that)! Cutting still isn’t enough when you figure in the pension costs. The state pays its formerly unionized employees their full salary, plus 3% a year, to do nothing. Few states give such generous pensions,… Read more »
Well, if they live in Illinois they will indeed pay them. “Don’t wanna” isn’t a reason. They can choose to cut spending elsewhere but not when it comes to pensions.
Actually, I don’t expect any tax relief, I just want Pritzker to publicly acknowledge he was lying about it when he established his “task force”. I also think any talk of a child tax credit is ridiculous unless it is fully paid for in some way. These progressive liberals need to stop spending money that isn’t there.
From the study: Currently, the average single parent with children or dependents age 17 or younger earning $50,000 in annual net income or less pays an average of $509 in state income taxes after exemptions and the Earned Income Credit (EIC) are factored in. In other words, that cohort pays only 1% of their income in state income taxes. Funny how that never gets mentioned by the flat tax critics who claim it’s not fair that we all pay the same tax rate. We obviously do not. I think a CTC in some form at the state level is a… Read more »
Nick, I get your drift. I paid for plenty of kids over the course of my lifetime. They just weren’t mine.
Did you claim them as dependents?