-- 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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I will retire to Florida with all the cops, teachers and firemen.
They will not tax my hard worked for IRA savings I worked all my life for.
Good bye if you do this, now you get nothing from me.
You can tax retirement income, but who’s going to stick around to pay it? That’ll be the straw that broke the camel’s back for many IL residents; some of whom aren’t retired yet.
Depends. At first they will only tax top retirement income earners. Think top 3% and it will be done because it’s only “fair”. Eventually they will lower the dollar amount to collect more income in the name of fairness. Now think about this. I’ve read estimates that over 40% of retirees live off of social security alone. How many retirees make more than 75k per year? If they only tax retirement income above 50k my guess is very few people leave the state over that. 5% of the 25k over 50 is only $1250 per year. Is grandma going to… Read more »
Good points, but here are a few further thoughts:
1) Whatever they set the minimum retirement income level for taxing will be able to be adjusted.
2) If enough people relocate, the pols’ revenue estimates from taxing retirement will be much overstated.
3) According to an Illinois Policy article, IL population decreased by 51,250 from July 2018 to July 2019. That’s a much higher rate of decline than what you noted. At some point, if enough people leave, the pols will take notice.
“According to an Illinois Policy article, IL population decreased by 51,250 from July 2018 to July 2019.” Agreed. They will continue to adjust downward. Agreed. That will be their excuse to increase taxes some more. Since 2010 the population of Illinois has declined 150k. The state almost doubled its’ tax revenue during that time. If we just look at the time frame you are looking at (51k decline) Illinois also collected $3 Billion more in revenue than 2018. Do you really think politicians care if people leave if they continue to collect more revenue? They don’t. They only care about… Read more »