Democrats trying to raise taxes again (Chicago: middle-class, loan, bankruptcy)

[lepoisson]

And so it continues... again... Chicago phone tax could rise by 28 percent to save pension fund | Chicago Sun-Times

You seriously can't make this stuff up.

[Last1Out]

Originally Posted by Chicago South Sider

I'm looking forward to the day these people bankrupt the state.

It may be closer than you think.

https://www.bloomberg.com/news/artic...over-stalemate

[BRU67]

If Republicans propose to even so much as go against massively increasing school funding because we can't afford it, you will see heart wrenching ads and "news" articles appear featuring poor crying school children who stand to lose out on their free breakfast or such.

And cutting almost any entitlement (including six figure public employee pensions) will be met by emotionally charged backlash in the media fawning over those who stand to lose.

Our society has seemingly lost all ability to make tough decisions. This is going to become a real problem.

[Jacobo1]

Originally Posted by RisingAurvandil

The state could raise its income tax to 10% and cut spending by 20%. But that pleases neither liberals or conservatives, and thus will not occur soon. But it needs to.

It will eventually be forced upon the state.

A 10% flat tax will absolutely annihilate taxpayers in this state. Anyone who can get out will. You cannot raise income taxes to that level even though it might be needed. This state is knee deep in it more than it even knows. We can't tax or cut our way out but at the same time we can't do much more of either to just compromise. We are effectively bankrupt.

[goillini8]

As much as the none of the residents of Illinois deserve to be inundated with higher taxes and fees, there was a time when I thought, okay, we have to bite the bullet and work ourselves out of this mess - it's just too insane and harmful to have such a broken budget for such a long time. So, I thought, small to modest increases to wide variety of fines, fees and licenses, a modest tax increase for individuals and businesses, some tough-choice cuts to spending, or at the very least hold the line and then reduce the state work force through attrition. Don't expect it to clear up the deficit overnight - take a longer view, which is all that can be done unless you want massive tax increases and massive spending cuts.

But, I've essentially given up all hope. I don't trust that if there were new revenue sources - more money coming in - that it wouldn't just be wasted, and we'd be in an even bigger hole down the road.

And, this is coming from a Democrat, though one born and raised in Minnesota where the state Democratic party (at least when I was growing up) was fairly competent, IMO.

If my taxes are raised, there better be progress on the budget/deficit front. It doesn't have to be solved overnight (which it can't), but there needs to be progress, and I just don't have faith that it can happen.

[chet everett]

Originally Posted by goillini8

As much as the none of the residents of Illinois deserve to be inundated with higher taxes and fees, there was a time when I thought, okay, we have to bite the bullet and work ourselves out of this mess - it's just too insane and harmful to have such a broken budget for such a long time. So, I thought, small to modest increases to wide variety of fines, fees and licenses, a modest tax increase for individuals and businesses, some tough-choice cuts to spending, or at the very least hold the line and then reduce the state work force through attrition. Don't expect it to clear up the deficit overnight - take a longer view, which is all that can be done unless you want massive tax increases and massive spending cuts.

But, I've essentially given up all hope. I don't trust that if there were new revenue sources - more money coming in - that it wouldn't just be wasted, and we'd be in an even bigger hole down the road.

And, this is coming from a Democrat, though one born and raised in Minnesota where the state Democratic party (at least when I was growing up) was fairly competent, IMO.

If my taxes are raised, there better be progress on the budget/deficit front. It doesn't have to be solved overnight (which it can't), but there needs to be progress, and I just don't have faith that it can happen.

...lawmakers in Minnesota or Iowa or Wisconsin or Indiana or even Missouri or Kentucky are NOT SO BRAZEN as to actually profit by running businesses that ACTIVELY WORK AGAINST the existing tax collection system. When you have a DEMOCRAT like Chris Kennedy pointing out that Mike Madigan is literally PROFITING from a dysfunctional system that makes tax attorneys RICH and places more tax burden onto the backs of "non-insiders" there is no hope for anything being "fair"... Chris Kennedy calls property tax system 'extortion' - Chicago Tribune

[Geo-Aggie]

This may be heartless of me, but it seems Illinois' only real recourse here is to admit mistake and reevaluate the pension system as Wayne County, Michigan did.

Yes, it will hurt retirees who depend on these pensions, but let's be honest here - it's unsustainable and if the state wishes to ever pass a balanced budget that's the elephant in the room that needs to be reevaluated. A civil service retiree should still be expected to receive some of their pension (as well as their federal SS income), so nobody is going to be without money, but some people who have set their lives up on an expectation of a $100,000 income may have to learn to live with a significantly decreased percentage of that. While that is unfortunate, it's less terrible than seeing a state go bankrupt in the next 5-10 years, which would cause a cut to the pension service anyway, and likely be worse than addressing the situation preemptively, like they could today.

In addition, if state employees didn't see the writing on the walls 10+ years ago and begin funding a private IRA or other nest egg, then one can only have so much sympathy for the situation.

[chet everett]

Originally Posted by Geo-Aggie

This may be heartless of me, but it seems Illinois' only real recourse here is to admit mistake and reevaluate the pension system as Wayne County, Michigan did.

Yes, it will hurt retirees who depend on these pensions, but let's be honest here - it's unsustainable and if the state wishes to ever pass a balanced budget that's the elephant in the room that needs to be reevaluated. A civil service retiree should still be expected to receive some of their pension (as well as their federal SS income), so nobody is going to be without money, but some people who have set their lives up on an expectation of a $100,000 income may have to learn to live with a significantly decreased percentage of that. While that is unfortunate, it's less terrible than seeing a state go bankrupt in the next 5-10 years, which would cause a cut to the pension service anyway, and likely be worse than addressing the situation preemptively, like they could today.

In addition, if state employees didn't see the writing on the walls 10+ years ago and begin funding a private IRA or other nest egg, then one can only have so much sympathy for the situation.

While I would agree with your points you are forgetting that in Illinois "regular people" don't matter. Illinois government from the greed of past governors who've ended up in prison, to a Supreme Court stacked with insiders who laugh at arguments from their own party for pension reform, to a legislature that has more in common with the dictatorships than any sort of "representative democracy" will NEVER do anything than protect their own interests!

[lepoisson]

What do you guys/gals think will happen? I'm guessing that we will eventually get to the point where the funds run out. How far off are we thinking that is?

[MSchemist80]

As that scene from the Sopranos "Bust Out" When the credit finally runs out.


https://m.youtube.com/watch?v=ZXcBvq2Jscw