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A CTU-backed group wants those with annual household income above $100,000 to pay 3.5 percent a year to City Hall—plus a “LaSalle Street tax” and more. But CTA rides and community college would be free.
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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In what major city in this country would having a family income of slightly over $100K categorize you as wealthy? I think that’s closer to the poverty level than being wealthy.
So many fun nuggets: – They first focused on the city income tax BEFORE the commuter tax. – The word “neoliberal” appears 49 times. – “credit ratings for state and local governments are largely a sham, because municipal borrowers almost never default” – I don’t think they understand the bond ratings. Aren’t you more likely to default if you have a lot of debt on the books, even if you’ve never defaulted before? That’s the rating. – “Corporations who do business in the city benefit from city services. Their employees use city roads to get to work, regardless of whether… Read more »
Wonder if the 40% of city workers now making +$100k year would be exempt from 3.5% tax?Or if taxed, they could strike for 3.5% cost of living increase!! Also, why isnt seiu proposing this plan thru thier own paper–suntimes instead of crains/g. hinze?
Well, the public employee unions are doing what they do.
Mark/Ted, do you guys really feel like this place can be salvaged? There is no respect for liberty, freedom, entrepreneurship, capitalism or the private sector here. When you can’t fundamentally change the minds of hardened grifters like these people–and they have complete control of the political establishment–how do we even stand a chance?
Isn’t it better to just pack up and let them “have it?”
Yep, time to call the moving company and the realtor.
Time to GTF out of Chicago.
It will be salvaged only after it bottoms out, which is a long way off because the establishment just wants to kick the can, which only deepens the abyss.