-- 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 call fraud on real estate tax exemptions applied to Duckworth’s Illinois house. It’s obvious Duckworth and husband don’t “live” in Illinois anymore. There’s their much nicer McMansion in McLean Virginia, in all likelihood their primary domicile for IRS purposes.
There should be NO homestead exemption on Cook County house. It’s a 2nd home.
Next question: do Obamas still receive homestead exemption for their house in Chicago? This house hasn’t been their primary domicile since Obama became president. But I bet that exemption remains untouched, 12 years later. Someone please confirm.
Screw Tammy Duck!
Tammy Duckworth likes to spend other people’s money, surprise.
This is why we need a county income tax in exchange for a reduction in property taxes like Indiana has been doing for years now. Property taxes for homes capped at 1% and business at 2%. County income tax for Cook at 2-3% max and the other 101 counties at 1-1.5% max and if it needs to be raised it can only be done by referendum. Property values would increase for most everyone. Why are our homes just ATM machines for taxing bodies? Look at property values in states with taxes at less than 1% like Colorado at .56%/AZ at… Read more »
In your plan, why would Cook County be allowed a higher maximum income tax rate compared to the other counties?
For the most part Cook county has higher incomes. If you look at Indiana I believe that Indianapolis has a 3% county income tax compared to other counties that are between 1-1.5%. I will try to find the county tax tables for Indiana.
Here is some of the changes from 2007
https://taxfoundation.org/governor-daniels-presents-property-tax-reform-plan-indiana
aka a “progressive” income tax — ugh
I agree it would be a sort of progressive tax but Indiana overall is doing much much better than Illinois. Home values are up.Business climate is good. Many people and businesses are moving there and their state income tax I believe is 3.23% down from where it was before reforms. Federal taxes are progressive. The more you make the more you pay. If the Dems get their way we may see a 90% top tax rate like it was decades ago. I think their homestead exemption is $45K. Problem is we have these mostly self elected-vermin-psycho- Sodom&Gomorrah escapees-biological infestations who… Read more »
Yeah, “a county income tax in exchange for a reduction in property taxes” wouldn’t likely benefit the IL taxpayer, since IL is all about continually generating more tax revenue without reducing excessive spending.
You know things are out of control when many State of IL retirees’ pensions are exceeding the salaries of IL professional workers. That’s been going on for many years, and the IL pols have no problem with it. That’s one of the results of corruption and greed.
Because based upon past voting results they would vote for higher taxes.
I have no interest in another tax that will be siphoned away from my upper middle class hometown just like my state income taxes.
Just throwing out ideas. This tax would be done in exchange for NOT in addition to. Having a local county income tax in exchange for capping property taxes at 1% would increase values. They did this in Indiana as the link I provided explains. Something has to be done. In Indiana before this happened some assessors were valuing properties at insurance replacement costs skyrocketing taxes to the point that people were taxed out of their homes. Do you have any ideas? Just wait till interest rates go up and the stock market tanks and see what that does to your… Read more »
That is a very interesting idea. If enacted I seriously doubt that counties would lower their property taxes. They are in such dire need of money they will probably just add the income tax without reducing any other taxes. Governments in Illinois seem to think there is a revenue problem and not a spending problem. As long as this thinking persists taxes, as well as spending, will rise.
Indiana’s growth is due to there being less corruption than Illinois, not out of any alleged intelligence in their taxation structures.
Cook County ALREADY has a state exemption on residential property taxes, only two counties are allowed to assess residential property at a lower rate than commercial property, Cook being the main one. Residential property is assessed at a THIRD of the commercial property rate – (15% vs 45%) whereas the other counties are required to assess property at the same rate (33%). Despite this break to residents, Cook County residential property taxes are ballooning. This is the main reason why so many large companies moved from the city to DuPage and Lake counties in the 1970’s. (Along with the stupid… Read more »
Those high commercial tax rates make for insanely high property tax bills for strip malls, light industrial and low rise office buildings. Drive around the county and in all but the highest income neighborhoods, like downtown where tenants can afford the taxes, the commercial buildings are dumpy rundown and dilapidated structures. The selling prices for these buildings are often depressed too because the market rate rents often don’t even cover the taxes. I personally know one guy who *gave* away a strip mall in the south suburbs for free to a tenant just so he wouldn’t have cover the diffference… Read more »