-- Connecting the dots between our economy, government and business --
Mayor Lori Lightfoot claims the tax increase is needed to help the city's poorly performing pension system, which has nearly $47 billion in debt, and prevent job layoffs and other cuts. "If the choice is nondelivery of city resources, a layoff of city workers, or a modest tax increase, most people would say, OK, mayor, I get that. I may not like it, but I get it," she said.
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
“Lightfoot said the proposed tax increase would not end up being too much for most Chicagoans, claiming a homeowner with a $250,000 home will have to pay $34 in one year.” What kind of math is that? If the effective tax rate in Chicago is 2 percent, that homeowner pays $5K in property taxes. 2.5 percent of $5K is $125, not $34. Also, is the 2.5 percent increase on your total tax bill or just on your assessed value? If it’s only on your assessed value, your total tax bill will likely increase more than that because some or most… Read more »
Why not ask property owners their preference? I suspect they’d favor reductions in city “services” and head count and pay and benefits. On the other hand, if you ask the general population or public employees whether they would like other peoples’ money, they’d probably vote in favor. The mayor’s approach is not going to end well for the city. Detroit Population Facts What was the peak population of Detroit? The peak population of Detroit was in 1950, when its population was 1,849,568. In 1950, Detroit was the 5th largest city in the US; now it’s fallen to the 27th largest… Read more »
People that ignore history are doomed to repeat it. Chicago learned nothing from Detroit woes.
How about engaging McKenzie or Ernst and Young (or equivalent reputable firms) to perform reviews of (1) Chicago/Ill pensions and identify instances of abuse and instances where public pensions materially deviate from the average non-public union taxpayer; (2) political corruption in IL-Chicago with recommendations regarding substantive fixes; (3) political mismanagement (ie inadequate (totally in most cases) supervision) of key processes such as courts, property taxes, unemployment payments, etc.; (4) legal reforms to eliminate crazy litigation awards in IL; (5) IL tax reforms to induce businesses to relocate to and stay in IL; (6) how to reestablish social order in Chicago… Read more »
Don’t care. Happy now in Tennessee.
City of Chicago Total Net Assets 2011 – $2,609,500,000
City of Chicago Total Net Assets 2021 – $27,121,300,000
How to remove your property from the tax roll. – Steve Emerson
Perhaps cut those $500 monthly guaranteed basic income payments as a start
The price you pay for living in Chicago.
Onward to poverty, financial ruin and homelessness for everyone that chooses to live there.
West Detroit here we come. This POS can’t get back to Ohio fast enough.