-- Connecting the dots between our economy, government and business --
The McCallister family’s movie home is supporting 11 different taxing districts through its property taxes, and those government units have a combined public pension and health care shortfall of $16.1 billion.
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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Does the mansion have toilets?
Chicago RE Tax bills will have to rise, substantially, to approximate the suburbs. Politicians control the rates and so far mitigate tax burdens by spreading off the revenue shortfalls into taxes on other services to raise funding. That avenue will eventually run out. So, for all of you, over the last 5+ years, who have purchased a fancy Condo on LSD for $1.5M or more, grab your ankles. It’s coming sooner than you think. Pick a multiple…2,3x…Enjoy all of your “shared values”.
Chicago property taxpayers have enjoyed lower taxes for years compared to suburbs, you are exactly right there bills will rise, all I can say it’s about time welcome to the 7,000 dollar plus club welcome.
But if we take just a little bit more in higher taxes from the rich owners of the McCalister house that will pay off the $16 billion, right?
As a comparison if that home were in Rockford taxes would be $55,462.33 based on a current tax rate of 13.3967% at 1/3rd value of $1.26M
At the purchase price of $1.6M in 2012 taxes would have been $68,034.43 with a tax rate of 12.9016%. This is with homeowners deduction.
If they used the senior deduction they could have saved a few $$ more.
If they would declare that home a church taxes would be “zero” “nada” “zilch”
Maybe we all need to declare our homes as churches.