-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
If they want to tax their way out of it, they are going to have to go nuclear to prevent a run from real-estate. Automatic 3% property tax (in addition to current rates) — lock the homeowner into their $250k home and force them to pay. If they don’t pay, take their house from them, sell it at auction for $100k. Now that’s a Chicago solution. Whats the problem with that?…
Isn’t this what they do anyways? Except in bad areas, no investor will buy the back taxes. So the mortgage company releases the defaulted mortgage, no one buys the back taxes, the county just keeps charging taxes. And before you know it, the back taxes to buy the property exceeds the value of the property. a $20,000 house with $40,000 in back taxes. The neighborhood becomes filled with ‘zombie’ properties, with long gone homeowners, no tax revenue and criminals everywhere. I’ve seen it first hand. Occasionally the city will fast track demolition but there’s just so many properties, and it’s… Read more »
“Second, in her public statements, the mayor has not distinguished between personal consumption of professional services (which should, ideally, be taxed)” This will drive many small non-retail businesses out of Chicago. It’s not that difficult to move to Schaumburg or Rosemont when the Chicago lease ends. I know a guy who had a Chicago business and moved it to Rosemont, not because of this tax, but for other general ‘chicago business costs’ and commuting reasons. He asked his clients if they cared if he moved from Chicago to the suburbs – not a single one of them cared. That’s other… Read more »
A fantastically depressing summary of what few option’s chicago has. As a chicago home owner–astoundinly there are no chicago pols that are looken out for what little i got..i dont count in the press/pc pathos as a victim
This is a good article that shows how things are maxed out. They are very close–if not at the point of–no place to turn. I honestly think–with the exception of Lightfoot–that none of them care. You’ve got socialist aldermen, who have no clue how business works, nor have ever run one. Anything they can steal from businesses to give to “the people” Chavez-style, they will. Because they are idiots. The people that vote for them are idiots too. I note that most of them come from neighborhoods with heavy immigration. Perhaps they don’t know any better; I gave up trying… Read more »
The best option is just to kick the can down the road like everyone else has.