It shouldn’t have taken a PhD in economics to notice this – Wirepoints Quickpoint
May 17, 2024
56 Comments
What a representation of Chicago’s plight.
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Twelve Illinois Congressmen vote against bill to give federal custody to non-citizen defendants charged or convicted with assaulting cops – Wirepoints Quickpoint
May 17, 2024
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The bill passed despite their votes in response to certain incidents where local prosecutors are thought to have been too lenient with non-citizens assaulting cops.
The Chicago Teachers Union Plays Hooky – Wirepoints in the Wall Street Journal*
May 17, 2024
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The Wall Street Journal Editorial Board cited Wirepoints’ analysis of Chicago student proficiency data in their latest piece condemning the Chicago Teachers Union’s outrageous contract demands…all while a vast majority of Chicago’s children graduate unable to read at grade level.
Gov. Pritzker is using the threat of budget cuts to get more tax hikes passed – Wirepoints joins Tom Miller of WJPF Carbondale
May 17, 2024
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Ted joined Tom Miller of WJPF to talk about the details of Gov. Pritzker’s proposed $52 billion budget, why the state is struggling now that federal covid dollars have run out, the controversy surrounding Tier 2 government pensions, why Illinois’ expensive education system fails to teach children to read, the outrageous demands of the Chicago Teachers Union, and more.
Public education staffing has ballooned over the years…yet kids still can’t read – Wirepoints on with Jeff Daly of WZUS Decatur Radio
May 17, 2024
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Ted joined Jeff Daly to discuss how politicians can never spend enough on education despite there being no accountability for that spending, the growth of education staffing across Illinois, Mayor Brandon Johnson’s $1 billion demand for Chicago schools, why Gov. Pritzker is providing $830 million in taxpayer subsidies to struggling EV carmaker Rivian, and more.
Mark- I had an idea that I brought up at a townhall meeting with Sen Steve Stadelman (D) a while back and he said it was an interesting proposition. Suppose we tax public worker retirees at a nominal rate and that tax is put directly in to the same pension system they are receiving it from. Example a retired Rockford fireman or policeman pays the tax and it is put back in to shore up those who have not retired yet. This would show they DO want to take care of their own. If there is any pushback or resistance… Read more »
Taxes have to be uniform. You couldn’t single out retirees for a special tax. Also, politically, it won’t happen because those in power want others to pay for the pensions, not retirees.
Pritzker hasn’t said it yet, but there is huge bucket of untapped “revenue” right in front of him. He must introduce a retirement income tax, its the only “woke” thing to do. Its only “fair” after all the generational theft so far. A retirement income tax will generate revenue and serve as a reverse generational balance. Right now the kids are getting shafted, big time. Retired folks have it made in Illinois, everyone under 50 is paying for their free ride, no income tax and property tax discounts.
I doubt you are serious (given your usual postings) but I am fairly sure that IL could not tax state or municipal pensions paid to retirees living out of state. If one taxes IL residents, they’ll be motivated to move elsewhere. Similar problems with wealth taxes generally. The state and perhaps its municipalities could tax pension payments to IL residents and probably could tax their accumulated 401(k) balances — say a tax on > $1 million of 401(k) balances. However, most people with significant amounts at risk will still be motivated to leave the state. Unfortunately, there are many “woke”… Read more »
Rick – The Pension Source Tax Act of 1996 stipulates that no State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State. Illinois cannot tax non-residents for pensions earned within the state. S Dogood – At least if we tax retirement income, we enrage a growing portion of the population. Get their skin in the game. James – A $50,000 individual retiree income tax exemption is huge. Why should a retired principal with a $150,000 pension get to deduct $50K from his taxable income when I can’t… Read more »
Nixit, I proposed one way of taxing retirees, you proposed other ways and likely there are others who want to do it with their ways. TomAtoes, tomAHtoes, let’s call the whole thing off. The point is to make progress with the two basic ideas here–taxing retiree income at the state level to help fund the state government while encouraging people with higher incomes not to move so readily to more economically friendly states, isn’t it? There are lots of ways to skin that cat presumably.
I’ve seen various verions of that concept from the other people from time to time, and I agree with most of what you’ve said here. But, I don’t agree with the last clause of your last sentence: “no income tax and property tax discounts” for those who are retired and living in Illinois. What you have to remember is that both the super rich and those who are retired have more freedom to move wherever they wish in terms of their personal ecomonic choices. Ultiimately you need to tread a bit more lightly on the retirees with the full income… Read more »
Yes I don’t actually believe in this solution. But used it to illustrate what happens when the money runs out, how does a woke politician justify singling out one group from taxation? Especially in the midst of such massive generational taxation. Most progressive “woke” states do tax retirement income. I think the retirees are the key to reigning in all this, they have no skin in the game. They really don’t care. The minute pritzker puts them in the game the crap will hit the fan big time. Pritzker is just waiting for his marching orders from Madigan and Cullerton.… Read more »
How about returning to the old way of taxing farm ground based upon its market value, what developers would pay for it?
Has anyone looked into what percentage of Illinois citizens receive a public pension vs. not receiving one? This massive deficit can probably be illustrated better by showing X% of Illinois’ population is dragging down the rest of society and hiking property taxes.
What I do know is public union members are just 3% of the population. With dependents, maybe 8% or so. It’s an astonishing story of capture of a democracy by a tiny minority.
~5% of the population has put a concrete anchor on the fiscal state of Illinois. That is an impressive statistic….
And they like their pension checks mailed to Florida, to help boost the Florida economy. When they leave, their pension goes with them. When a non retired citizen leaves their talent and income leave.