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.
In other words, taxes are too high
This is part of the problem. The flat tax isn’t so flat with assorted giveaways to special interest individuals/entities. When the tax was first developed it was going to be a simple tax applied to every one/thing but over time that was changed and when one individual/thing gets a break the others have to pay more to make up the difference.