Chicago Fed Thinks It Knows How To Tax Illinoisans Fleeing Pension Liabilities (taxi, taxes)

[Liledgy]

Originally Posted by Mathguy

Actually exemption from social security would likely leave you well ahead if you throw the money you would have had to contribute yourself into an investment vehicle and are making good wages like in the Chicago metro.

Social security has a declining wage return meaning that 30k earners don’t get half what 60k earners do and so forth.

The average pension of someone drawing from the teachers pension after a full career teaching is 75k or so. Throw in a million from forty years of ira or 401k accumulation of not paying soc sec and even without ss you’re looking at 100k a year retirement

I’ll take your word on a 75k pension (seems high) since the don’t get social security, like most wage earners, the pension isn’t that high (if you were to deduct there projected SS payment). Plus they are putting in an additional 3.1%.

[Liledgy]

Originally Posted by RisingAurvandil

Why? You can't disregard the facts. Teachers in Illinois are paid far better than Indiana. 22% better on average, which more than compensates for any retirement benefits that Indiana may offer.

Furthermore, the utility of money is greater in a teacher's younger years. They are still young enough to climb mountains, raise kids, build a 401k, earn a masters, etc. Retirement money is nice, but it's not as valuable as present-day money.

Because there are teachers from both statesthat make the same amount, and Indiana teachers are getting a much better deal.

[jlawrence01]

If the politicians cannot resolve the problem, at some point the US Bankruptcy Court will.

[Bitey]

Originally Posted by jlawrence01

If the politicians cannot resolve the problem, at some point the US Bankruptcy Court will.

Maybe, maybe not. There is no provision in bankruptcy law that allows a state to declare bankruptcy, and the law is unclear on whether a state-run pension fund can declare bankruptcy independently.

[bobsell]

Originally Posted by RisingAurvandil

Why? You can't disregard the facts. Teachers in Illinois are paid far better than Indiana. 22% better on average, which more than compensates for any retirement benefits that Indiana may offer.

You're only looking at the top line. A more reasonable way is to look at the bottom line.

Did you also compare the COL of both Illinois and Indiana? Illinois COL is far higher than Indiana's.

Take salary minus COL for both areas and then you can see who really gets paid better.

22% more pay at a COL that's 30% higher means they're behind, not ahead.

[NewHomer556]

Originally Posted by bobsell

You're only looking at the top line. A more reasonable way is to look at the bottom line.

Did you also compare the COL of both Illinois and Indiana? Illinois COL is far higher than Indiana's.

Take salary minus COL for both areas and then you can see who really gets paid better.

22% more pay at a COL that's 30% higher means they're behind, not ahead.

Spot on. People like to preach about wages without doing the simple cost of living adjustment. Then some like to argue that it all evens out when in reality it doesn't. A simple cost of living calculator which you can google will show people in Indiana come out ahead compared to many places in America and especially Illinois.

[bobsell]

Originally Posted by NewHomer556

Spot on. People like to preach about wages without doing the simple cost of living adjustment. Then some like to argue that it all evens out when in reality it doesn't. A simple cost of living calculator which you can google will show people in Indiana come out ahead compared to many places in America and especially Illinois.

Yup.

I've seen people who move from the Midwest for a 50% pay increase to Silicon Valley which has a 300% COL adjustment. Or NYC which has a 200% COL. Or DC which has 250% COL. Oops.

[RisingAurvandil]

Originally Posted by bobsell

Did you also compare the COL of both Illinois and Indiana? Illinois COL is far higher than Indiana's.

Take salary minus COL for both areas and then you can see who really gets paid better.

22% more pay at a COL that's 30% higher means they're behind, not ahead.

Maybe if you live in Chicago.

Living is easy in downstate IL. I own property in Madison County and I can assure you, the cost-of-living is very low. And it's within a major metropolitan area (StL).

But even in Chicago, they get the benefits of living in a global city. You can't buy that anywhere in Indiana, for any price.

[DoseTheClowns5]

Originally Posted by RisingAurvandil

Maybe if you live in Chicago.

Living is easy in downstate IL. I own property in Madison County and I can assure you, the cost-of-living is very low. And it's within a major metropolitan area (StL).

But even in Chicago, they get the benefits of living in a global city. You can't buy that anywhere in Indiana, for any price.

Ummm Indianapolis is just as much of a global city as St Louis........

[RisingAurvandil]

Originally Posted by DoseTheClowns5

Ummm Indianapolis is just as much of a global city as St Louis........

I did not say that StL was a global city.

You did not read the preceding sentence. Yet, you managed to embolden the last sentence. Read it again.