-- 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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Just raise everyone else’s taxes to cover the difference. The state is broke so they are going to cut old peoples taxes. They will either borrow the difference or have to raise taxes. Either way the taxpayer picks up the bill.
The only real solution is cut government bloat, this needs to start with elimination of townships and consolidation of school districts.
You will die of old age before that happens.
This is a transfer of tax liability from one group of tax payers (Senior citizens) to another group of tax payers–everyone else. It is well intended but misses the point: property taxes are too high because of bloated government at all levels in Illinois. The beneficiaries of this proposed change are likely paying no state Income tax because their income is retirement income. A working family at the same income levels will pay higher property taxes on top of their state income tax payments. There is a difference between a level playing field and a “pick your favorites” approach to… Read more »
Exactly. If the senior freeze income threshold is increased, the rest of us will need to make up for the lost revenue. That would likely be through even higher property taxes. Even if it didn’t happen that way, there are many other ways Illinois can stick us to recoup the lost revenue.
So, this bill would benefit a small percentage of Illinois property taxpayers at the expense of the rest of us. This is another example of Illinois pols being poor stewards of funds from most Illinois taxpayers.
Haven’t you heard? No good deed goes unpunished.