The comments posted on this message board represent the individual opinions of their respective posters only and are not to be construed as statements of proven or alleged fact.
I like the way that this letter to the editor couches the entire 50% Illinois income tax increase as something that will "make taxes fairer for low and moderate income families".
Sure, it might. They never explain how but I have to figure that they are referring to Quinn's proposal to increase the "standard exemption" amount from $2,000 to $6,000.
OK, let's just implement THAT part without the 50% increase. How about that?
Oh, and also add a withholding allowance that allows the first $6,000, $12,000, $18,000 - whatever, depending upon how many exemptions are claimed - to NOT have Ill-Annoy income tax withheld. If you don't do that, the "low and moderate income families" will be giving an interest-free loan to Springfield until they file a return the following year.
Take a single mom with taxable income of 40,000. Under the current system she will have to pay taxes on 36000 at three percent or 1080. Under the "reform" system her taxable income will go down to 28000 but at four and a half percent her taxes will go up to 1260.
A lot of money. I believe 80B of that is unfunded. Personally I don't think the "ladies" care about the states crushing debt, its declining job base or the higher taxes that most people will have to pay to support this.
My guess is most if not all of them are dependent on some way on the state pension system. What they care about is that their pensions are guaranteed.
What an odd article. It points out that Illinois got into trouble by spending more than it brought in, borrowing (including robbing the State employees pension fund- though that seems to have been conveniently forgotten by the writer), and not paying it's bills. And then it seems to proposes we renege on paying some of the pension bill. Huh?
While undoubtedly IL gave out some sweet deals to upper management I find it hard to believe that really amounts to much of the 10's of billions of $ owed to the worker bees.
Myth #1. The General Assembly failed to kick in additional funds. How much additional funds from the general revenue would the state on a year by year basis been asked to contribute to fully fund the states pension system. The report doesn't say. Also there are various accounting methods to value Pension obligations. My guess is that the state with encouragement from its various unions have alway used the lowest. So that the true cost could be hidden from the taxpayers now that we're seriously in debt the true costs are coming home.
Myth #2 Illinois may not have a large number of state employees but with our large number of various government entities we have a large number of employees at those levels who are part of the state pension system. School teachers and so on.
Myth #3. Doesn't answer the question SS requires a 7.65 percent contribution from both employee and employer. State pensions require seven percent. You cannot collect SS until 62.5 not fully until 70. State pensions can start as early as fifty. So tell me which one is the better deal. I think the Max SS benefit is 2200.00 A month or 27k a year compare that to six figure pensions given to school administrators and various politicians.
Myth #4 if its so cheap why is it that we owe over 80B. Myth #4 is contradicting myth #1. On the one hand they're saying it costs so little then earlier they're saying that the state didn't fund it enough. Make up your minds.
Myth #5. Change the constitution. Its 80B not 54.4 get your facts right.
Myth #6. They only mention the admin costs not the total costs of funding the pension program.
Doesn't appear we have an unrealistic or expensive pension program in comparison to our peers public or private. We just refused to fund it for decades and now the bill is coming due and we're balking.
If we did amend the constitution to takeaway what we promised I imagine we would dry up and blow away as a State- educational institutions gone or full of incompetent teachers. Emergency services screwed. Judges corrupt (more than they already are ), etc. But we may dry up and blow away anyway- if no one is going to want to pay to resolve the worst State pension deficit in the nation many will probably just move out rather than pay higher taxes/fees.
I agree move, you'd be stupid to stick around here. You may very well be forced to move. Illinois has seen a six percent decline in the number of jobs in two years anyway. So either you or your job will soon be leaving anyway.
If you want to stick around and help pay 80B in debt for some corrupt judge or politician be my guess. Me I'm out of here.
The stateʹs duty to maintain pension benefit levels for its public employees is directly mandated in the Illinois Constitution. Specifically, Article XIII, Section 5 of the Illinois Constitution provides, “Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired (emphasis supplied).” Irrespective of the nature of the plans going forward – the only way to address the unfunded pension liability is to find a rational way to pay it. The problem cannot be legislated away.
See? the "problem cannot be legislated away". It's that simple. No laws or even the Consitiution can be amended, changed or otherwise revised.
I have 3 years of college expenses yet. We had planned on moving after that anyway as we will be empty nesters and after 25+ years are tired of urban living.
Would either of you two please tell me the name of the judge you find to be corrupt? While I wait for my answer, I will tell you that the judges have the sweetest retirement package. But I would not want their job. I would have to listen to lawyers all day.
"A great many people think they are thinking when they are merely rearranging their prejudices." William James
So where are we going, Taxpayer? So many States are in bad shape too. Arizona too dead, Florida too, well, Florida. Indiana is doing well but it's not a draw for me. What about MI or WI? High taxes, I understand. I could move back to NJ...Nah, too much snow. Believe me, I ponder this question everyday. What are your thoughts on where to get "out of here"?
My company has offices in various cities right now I'm seriously looking at Dallas ( Texas no state income tax ), other taxes are low as well. So I get an almost ten percent raise just by moving.
I think the tipping point for me came last year when Springfield passed a gigantic "Infrastructure Upgrade" [to the tune of around $30 billion] and then stated they were going to get the funding ball rolling with video poker.
That's akin to you or I planning our retirement with Lottery scratch-offs.
), etc. But we may dry up and blow away anyway- if no one is going to want to pay to resolve the worst State pension deficit in the nation many will probably just move out rather than pay higher taxes/fees.
