-- 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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This article did a nice job of upsetting people but clearly there wasn’t a real possibility of increasing pensions in this budget. Maybe next time.
Their pensions are exempt from state taxes, tax them if they move out of Illinois. Keep the money here.
It’s been addressed here a bit repeatedly but not lately: IL can’t tax any IL public employee pension recipient who legally has legal residency in another state. When learning that some commenters have said that such people ought to have a “service charge” applied to such state pensions, but that’s essentially a tax no matter the name given to it and fools no one to the contrary. What’s more the IL Constitution’s “pension clause” clearly states that neither a reduction of a public employee pension benefit nor its diminishment as to future benefits over time are permissible either. So, you’re… Read more »
Change the constitution. We need an amendment to stop 5% of the population from holding the other 95% hostage.
The Illinois constitution isn’t what’s stopping you from taxing pensions for pensioners that move out of state. It’s federal law. Also, changing the constitution won’t allow you to charge some type of “service fee”. Also, 5% of the population isn’t holding anyone hostage. They are accepting payment for the pensions that the state offered them when they first gained employment. The state owes the money plain and simple.
You are not legally allowed to tax residents of other states simply because they earned a pension in Illinois. So if they move, you get nothing.
The Springfield whores must be stopped, municipalities will now be bankrupt, homes abandoned Illinois will be a ghost state and yes it can happen and will.
Stop adding benefits to public pension in order to buy votes. IL pensions need to be reformed to be like private pensions.
Not many private pensions left. Just move all gov employees to SS.
Can’t. Unconstitutional.
More unfunded mandates meaning they are free right?
Free for the state.
“ Hooray!” say the pension pigs. “ It’s your fault for electing officials that enact things you never dreamed of and they never alluded to . Hooray!”.
Their motto: We dare you to try to stop us. Otherwise, shut up and pay.
Duh! That’s what PPF has been telling you ad nauseam. You have two choices—stay or leave IL. Moaning and stomping your feet might make you feel better, but it won’t solve your problem. Call U-Haul and you might avoid a stroke!
And what about all the people who can’t leave? You don’t mind it seems crapping all over them as long as the public unions get fatter off of unearned benefits. I’m shocked at how callous and smug you are of people’s plight in IL – You’re a swell person.
Oh, you are so altruistic, I’ll bet. You love your fellow man SO MUCH, don’t you? Well, not really if you favor the Trump favoring tax cuts for the uber wealthy and harming the truly poor in their healthcare especially, for example. Then, how about the despicable treatment of many immigrants en masse, claiming they commit so many crimes when the facts say they do less of it in percentage terms than Americans? In short, don’t play saint with me if you are one of the MAGA tribe at heart! They (you?) are despicable. Your adult friends and relatives of… Read more »
You’re the classic deranged Leftist Democrat. If there is anyone at all that cares for you (maybe some deadbeat public unionists) they should do an intervention.
Please, folks, try to stick to subject matter and not shots at persons.
I have both sympathy and empathy for my fellow man. I don’t consider myself a leftist at all but think of my point of view as that of a Christian. I am not heavily into politics, but the current disregard for human rights troubles me greatly as a Christian. How can the truly devout MAGA tribe have anything remotely like Christian values? That’s something you might ponder and especially so if you attend any church regularly.
I don’t understand raising MAGA and immigration points. They are irrelevant to the increase in pension obligations. The issue is whether government entities can afford these increases. I can’t speak for PPF but it appears he would state there is headroom for taxes – meaning that they can be raised to cover existing and new obligations without materially impacting the State’s economic productivity. I am not sure I agree but I understand the perspective. Suffice to say tax increases over time are not exogenous to productivity. Income tax policy is a tricky thing. I learned tax policy from the spouse… Read more »
“ meaning that they can be raised to cover existing and new obligations without materially impacting the State’s economic productivity” I never stated in wouldn’t impact the state’s economic productivity. I’ve admitted that tax increases may cause some people to leave the state and cause some reduction in economic activity but it won’t cause less revenue to be collected than before the tax hike. If I double the price of my widgets and lose 10% of my customers, I still make more money. In a perfect world we would have funded the pensions appropriately and we wouldn’t need more tax revenue… Read more »
Another point of agreement PPF. Your arithmetic is correct. If you double the price of widgets but only lose 10% of customers, you will make more money.
So what justifies the assumption that you will only lose 10% of your customers? What if your competitor keeps his prices the same? You may lose 90% of your customers. And then the confident arithmetic doesn’t work out at all.
I’m basing it on the fact that when Illinois increases taxes they get more revenue and only a small percentage of people actually leave the state. Now there may come a point where raising taxes doesn’t get more revenue but we aren’t there yet. People aren’t going to move out of state if they have to start paying taxes when getting a hair cut. Yes people on WP will cry but 99% of the population will do nothing. So until I get less revenue after raising my price of widgets, I can continue to raise prices to make more profit.… Read more »
It’s true that only a small percentage of people will leave. But more small businesses will close. More people will lose their jobs. They may stay in Illinois, but instead of contributing to revenue they will draw on more public benefits. The only way to attract new business investment will be to give tax breaks to shield them from the increased taxes. Meanwhile, there is absolutely no reason to assume the GA will use the increased revenue responsibly. They threw a massive party with the COVID funds. It will be no different with a tax increase. They will only increase… Read more »
“Meanwhile, there is absolutely no reason to assume the GA will use the increased revenue responsibly.” Another area where we agree. Doesn’t mean we don’t need more tax revenue for spending that was already made and now we have a debt. Also, the “EvErYoNe WiLl LeAvE” cry is getting old. Some people may leave and some business may not survive but that doesn’t mean we will get less revenue. Nothing from past increases shows we will get less revenue. That’s why they will continue to raise taxes until they can’t. My contention is we are not there yet. Others seem… Read more »
If you agree that more tax revenue will not be used for getting our fiscal house in order, why do you advocate for higher taxes? Simply to punish the bad voters of Illinois?
I’m not advocating for higher taxes. I’m stating that taxes can and will be raised to pay for pensions when people state the state can’t pay. I would prefer that the state cut spending where possible. Starting with money for a migrant “welcoming center” and “non-citizen” health care is a good start. I have stated that unless we elect politicians that want to cut spending then tax increases will continue to happen separate from pensions. You, like many others here, confuse me stating the truth with what I want. People here seem to prefer comments that aren’t grounded in reality… Read more »
I asked for no such commentary either way in a news story. Just saying a 2$ billion increase — and, yes, that’s a jump for a state with no population growth — is the bigger story that should have been clear.
You just did in your earlier response on the other thread. I’m assuming you commented in the wrong spot. You are upset that the Trib didn’t point out a $2 billion increase because it’s a “big jump”. It’s not the “bigger story”. Again, that’s your opinion. The average reader wants to know what benefits will be cut and what tax increases they will have to pay. You want them to provide headlines that direct the reader to a conclusion as you do in your articles. There is absolutely nothing wrong with just being factual when discussing a budget. You want… Read more »
I’m well aware of what your message and tactics have been. I must say I didn’t expect you to so readily admit to them.
You don’t know me at all, so you can’t logically claim any concept at all of MY “tactics”.
I feel like a slaughtered animal in a meat packing house. Just slit my throat and bleed me dry
Bend over taxpayers.