-- 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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Pritzker should focus on taxing farm ground at its fair market value just like everyone else does. Farmers naturally want a tax break but all Illinois residents do too. farmers say vacant ground does not require schools but one might add that taverns don’t need schools either so should taverns be exempt from taxation at the fair market value also? While we are at it eliminate the ability that developers get to use on subdivided farm ground and what about the builder’s spec house tax break? There are a lot of loopholes out there that need t be closed if… Read more »
I wonder what you think “fair market value” is for farm land? The current way that’s established shows that it varies depending upon the soil productivity index but may also vary really greatly depending upon the usual mantra of “location, location, location” (meaning how likely is it to have added value due to commercial or home development buyer interest). If the farm land has none of that latter sort of value in the near term, then only its productive value for farming applies, and the annual net income from an acre of farm land isn’t nearly what you likely think… Read more »
In my neck of the woods farm ground is sold at considerably higher prices than the so called “productivity value” farmers are taxed on. Fair market value is fair market value and that is how the Illinois system has been set up without providing special little perks to farmers. Providing one class of taxpayers special benefits makes the rest of the population pay more to more or less subsidize the ones with the perks. Naturally those that are not in a “location location location” area can and should pay less than those in more marketable areas. Here is a solution.… Read more »
Like any other real estate the price a particular piece of farm brings depends upon its presumed economic value and, who shows up with enough money and courage to outbid everyone else there. I am aware of government subsidies for farmers. This year it has been especially high since until the crop prices started rising this past December all looked absolutely bleaked for farmers economically. The government jacked up the subsidies thinking crop prices were going to be at historic lows and doled out checks accordingly. Nearly any other year one might choose to name wouldn’t show that confluence of… Read more »
From assorted websites:
“By aiding particular businesses and industries, subsidies put other businesses and industries at a disadvantage. … The result is a diversion of resources from businesses preferred by the market to those preferred by policymakers, which leads to losses for the overall economy.”
Apparenrly you think I don’t know that. I do. Tell the politicians since they make the rules as to how our society works. Its human nature to follow incentives. Change the incentives. Its a waste of time to chastise those who follow them. For decades on end governmental susidies have been part of the equation although when and how much—if any— varies due to politics and weather.