-- 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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●Copy of my email to Rob Paral on his contribution to this article. Rob- I just read an article that you contributed to where in summary, you stated that high taxes have little to do with why people are leaving Illinois. Finally, someone who makes sense! Government has been taxing tobacco for decades at ever increasing levels, knowing full well that making something more expensive makes people more likely to buy it. I love seeing my property taxes (extortion and virtual rent on property I’m suppose to own) go up and up. I’m hoping an encore of your insight will… Read more »
“Illinois Is Not Losing Its Highly Taxed Residents.”
Is there any data about domestic net migration by state, by income bracket?
Why, yes, actually there is. Wouldn’t it have been sensible for the author to go that source — the IRS? We’ve covered it in detail and will be doing it again soon on the latest release from the IRS. It shows directly that the article is wrong. Upper income folks are part of who is moving, at a tremendous cost to the state, irrespective of the fact that lower income Chicagoans are the larger component. It’s here: https://wirepoints.org/illinois-shrinking-tax-base-state-is-a-national-outlier-when-it-comes-to-losing-wealthy-residents-part-4/
To reach the conclusion “Illinois is not losing its highly taxed residents,” it seems the Chicago Magazine article looked at the increase of Illinois households with income of $200,000 or more from 2010 – 2017. Or something along those lines. The article was short on statistical details. Anyways, that would be all households in Illinois, not just those moving into, or out of, the state. Nowhere in the article was a comparison how many wealthy households (defined as those with income of $200,000 or more) moved into, versus out of, the state. The data source is the “S1901: Income in… Read more »
Let’s say that partly the truth. The higher income people if taxes are raised for them they will just raise prices for good and services they provide. Businesses will pass the cost to us. Lawyers and other professional people will raise their hourly fees/etc. Those who can will raise prices. Those who cannot will either close down or move. Regardless the middle class will pay more. The elite and uber wealthy probably don’t care or will get tax attorneys to find some loopholes. Lots of loopholes out there. Like a friend on mine once said. Nothing is expensive if you… Read more »
Raise prices? They will get more sales tax; a win win situation for the Democrats in charge.
complete garbage as sources, I am shocked… meanwhile in reality where numbers mean something, Wirepoints uses IRS data and gets called conspiratorial… hilarious
We’re not losing our highly taxes residents, huh?! Why then, let’s double their taxes! Wait, theyre still here?! Triple em?!