-- Connecting the dots between our economy, government and business --
The biggest potential moneymakers are an increase in property taxes, with a high-end estimate of $396 million, and an increase in the $9-a-month garbage collection fee, with a potential yield of $296.9 million. The perennial idea of extending the state sales tax to professional services has a potential annual yield of $305 million, but that’s a change that can only be made by the Illinois General Assembly and Gov. JB Pritzker has given a cold shoulder to the idea.
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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Golly. Why doesn’t Mayor Johnson’s team review 26 ideas to cut costs?
Only increases in taxes, no decreases in spending. What idiots.
Did he give up on the millionaire/billionaire tax? It seems like there might be a number of pension millionaires when you look at the value of their pension. Not an attorney or accountant but if a pension is a liability for the city then it’s an asset for the pensioner. I’m sure there’s a way they can get around the “neither diminish or reduce” language. If that suggestion gets any play I’m sure the millionaire/billionaire tax will quietly go away. Preferable first step would be budget cuts but what are the odds of that.
The article doesn’t give many specifics regarding how the revenue estimates were calculated. It does seem that $9/month for garbage pickup is awful low. Why shouldn’t this service cover its actual costs? And does Chicago still have 3-man garbage trucks?
Today’s politicians can seek re-election based on saving the city and its taxpayers!
Stop chasing your tail and file for bankruptcy. Who believes politicians’ promises anyway? Blame it on your uncollectable predecessors. Today’s politicians
Bankruptcy won’t save Chicago. More taxes and less services are what you will get instead.
Chicago will eventually be forced into bankruptcy by mathematical reality. Do the world a favor and step in front of a speeding semi you spam commenting loser.
The public employee unions will not be happy with that solution. Less services means less public employees. They won’t even close all the half-empty schools. The biggest obstacle to funding pensions is the public sector itself.
Just Like the taxpayers won’t have a choice in higher taxes, union employees won’t have a choice about cuts in services and their employment. Higher taxes and less services are on the menu.
You have extraordinary faith in the idea that pensioners will be not be on the menu of what public unions will consume next. How many times do they have to show you and tell you that more taxes will only go in their own pockets?
Crushing destruction of Public Sector Unions is the only thing that will save Chicago.
Johnson has never heard of spending cuts. CTA and CPS have never heard of downsizing and cutting political and DEI hires. All need to streamline and cut waste before getting another dime Taxpayers need to demand fiscal responsibility.
The city and state are at the banks of the Rubicon. It is no longer a revenue problem; it is a spending problem. If they try to “tap into” businesses, residents, millionaires and billionaires for more revenue, out migration will accelerate like a sprinter on steroids. We are not getting a return on our money taken from us.
Any raise in taxes should require 2x the amount cut elsewhere.
Cuts should cover the entire deficit. Start with any job or program begun during Covid funded by temporary federal funds, including at CPS. CPS uses kids as human shields when it cuts crossing guards to justify its fight for yet more money. Cut bloated admin, close low enrollment schools and sell off the property. End the violence interrupter money laundering scam. Endless possibilities but zero understanding and willingness to address reality, so back to the ATM.
Knowing Johnsons team, you could add up the IQ’s of all of them and not break 100. Taxes the democratic aspirin to ease incompetence.
I think you are being optimistic about the IQ of city hall.
The Communists will bleed the citizens dry with never ending schemes to take their money right up to the moment that bankruptcy is all that’s left. The lead up to the bankruptcy will be the city’s slow motion destruction that’s the Communist trade-mark, just as San Francisco, Oakland, Portland, Seattle. There’s no example of success that can be pointed to by such people.
So much for any pretense of “progressive” tax revenue ideas, as this stale laundry list is as “regressive” as it gets. Also, I don’t see how employee head tax meets any “progressive” standard as it’s a job killer and tax would simply be past on to consumer…..no, looks like the same-old/ same-old…tax the chumbolone class to death to pay for are ZERO LAYOFF upper-income guaranteed deal public sector class. As there no difference between “new machine” fake progressive CTU/Brandon and old school pay-to-play Madigan machine types. They’re all the same grifters in the “regressive” land of Lincoln. Make no mistake,… Read more »