Posted on 05/15/2018 2:03:25 PM PDT by InvisibleChurch
Illinois homeowners, who already pay some of the nation's highest property taxes, should pay about 40 percent more for the next three decades to wipe out the state's crippling pension debt, according to a trio of economists at the Federal Reserve Bank of Chicago.
The economists argue that paying off the state's $129.1 billion in unfunded pension obligations cannot be done with revenue from new taxes such as a tax on marijuana sales or on financial transactions.
Would you pay 40 percent more in property taxes if it would wipe out the state's crippling pension debt? Yes No See results vote online survey
"In our view, Illinois' best option is to impose a statewide residential property tax," they wrote, in part because it would be fair: "Illinois residents who have benefited most from the past services of governmental employees are more likely to be homeowners, so it seems reasonable that they should pay a larger share of the costs."
They are proposing a statewide tax of 1 percent of a home's value. Under their plan, the tax bill on a $500,000 house would go from about $11,600 to $16,600, an increase of $5,000, paid each year for 30 years.
The economists—Thomas Haasl, Rick Mattoon and Thomas Walstrum—calculated that a property tax equal to 1 percent of a home's value could plug the state's pension gap in 30 years.
Illinois homeowners pay an average of 2.32 percent of their home value in property tax every year, which according to WalletHub is second only to New Jersey's 2.40 percent.
(Excerpt) Read more at chicagobusiness.com ...
Hasn't happened yet. Not trying to sound jealous or envious, but my teacher neighbors have big pool parties all Summer long as I do contract work when I can get it. I thank the Good Lord for what we have, I'm just sayin'.
Seems fair. The good people voted for the representatives that continued to increase public employee pay, without additional funding for required pensions. Now pay up.
Instead of back-stabbing the property owners all across the state, who don't have a dog in this hunt, they should require the current public employees with pensions to pay an additional 50 percent of their paychecks to fund this bloated public-sector pension debt. Let them get taken to the cleaners and see how they like it.
They should also fire all of the liberals running this show and start a renegotiating process with the pensioners. Tell them they'll only get 10 cents on the dollar and let them cry about it.
If not, the unintended consequence of this onerous, unilateral wallet-picking scheme by the state will cause a huge outflow of residents. Property values will dive big time.
And who you going to sell to? More idiots moving in who don't understand economics?
And if you think for a moment that this proposed 1% tax will magically disappear in 30 years, dream on.
Just as bad as Seattle's jobs tax to pay for the homeless.
Liberals will only figure it out when they are hit hard in the pocketbook.
And even then, they will blame Trump.
Really.
We all make our own beds where we live.
East TN may not be a jobs hub,
But houses and food are affordable.
No State Taxes. And responsible government.
Your politicians made promises they could
not keep. Sorry, it is a cold hard fact.
“These morons in Illinois made their own beds. Let them lie in it.
No one forced them to live in a corrupt state. No one forced them to vote for crooks and democrats.”
Please don’t confuse Chicago and Illinois.
Will the last self sufficient,self respecting resident of Illinois headed to Florida or Arizona please turn out the lights?
I left Illinois in 2013. Taxes on my house downstate were 5%. Taxes on my house in Chicagoland were 8%.
As taxes go up ... and as working people continue to flee ... Illinois house values will continue to stagnate at the bottom. Supply exceeds demand. That simple.
So the tax RATE will have to go up even higher, or the assessments will have to be very phony, in order to collect more money. But house values will go down in direct proportion to taxes going up.
Some problems are unsolvable, which is why bankruptcy exists.
Unless a state's constitution prohibits it.
existing pension obligations must be honored, paid
but.. the state can stop amassing further pension obligations pretty soon, at least as fast as it renegotiates any public employee union contracts calling for them
the growth in pension debt can be stemmed!
all the fine citizens of Illinois need to do is elect some HONEST, NOT CROOKED and sensible politicians (and please, yes,, I do know that’s an oxymoronic phrase, ha!) But still .... the citizens of Illinois CAN fix this problem if they choose
The voters voted for it
I’m sure happy to live in the state of Tennessee.
Sure, our government is corrupt.
They’re just not as greedy.
Yes, there are many cold hard facts...shame when Freepres want to pit states against each other...name me one area in which TN is leading. What has the state produced?
Yes, houses are affordable...food? Well that is fairly standard unless you are in AK or HI...So tell me about all the high paying jobs there...How does one make $50,000+ to start with BS and $150,000/yr experienced?
I lived in East TN (and I liked it but then I met nice people who did not hold it against me that I was a “yankee” from IL...), I know about jobs, property values and crime/immigrant issues as well.
Yes, houses are affordable...food? Well isn’t that is fairly standard unless you are in AK or HI...So tell me about all the high paying jobs there...
NO area is perfect, and I would never diss people living in one state because the state legislature is controlled by liberals...it would by totally hypocritical because Free Republic is headquartered in California...
Dallas is just as liberal as Austin.
“Illinois homeowners should pay about 40 percent more for the next three decades to wipe out the state’s crippling pension debt”
Here’s a better idea: cut the pensions of the fascist government retirees by half. No need to raise taxes. The next year, cut the pensions in half again. Year three, do the cut again.
Freedom56v2
I don’t necessarily “gloat” over other states misfortune. It’s more “But for the Grace of God” and get on my knees and thank the Good Lord I was blessed with parents that were born in Tennessee.
You’re right Tennessee isn’t a “jobs powerhouse”
But it don’t have to be.
30,000 to 40,000 a year will get you into a very good house in a decent neighborhood.
And the taxes are reasonable.
But don’t tell anyone. It’s a secret.
We’re all dirty rednecks who married their sister and drink moonshine.
Pass it on...
#37 Not true. I am in MPERS.
Michigan public employees retirement system.
I pay in 7%, 3% for retirement Healthcare that is a 80/20 plan and 4% for retirement
For those wondering the formula for our pension (Older no longer offered Basic Plan) is your 5 highest years income average x 1.5% x years of service.
So 30 years gets you 45% of your 5 year highest average. Healthcare is not available until 20 years of service at 10% per year coverage increasing to the 80/20 @ 30 years but you must be 55 to qualify. Once you qualify for Medicare it becomes the primary and MPERS becomes the secondary.
It’s better than alot but less than my wife (Fortune 500 Company) will get from her matching funding 401k that we max out every year for the same amount of years and her private pension which is about 5/8ths of mine.
As people start leaving, where will they get their property tax? From abandoned houses?
The shame is ILL politicians have screwed all citizens of the state.
Be they liberal or conservative.
It’s great to have a state that has great paying jobs.
But if you are taxed to death, what’s the point of living there.
Per your example, a $50,000 salary in TN buys a whole lot
more than a $50,000 salary in Chicago.
I hope you find a State you like better.
I think you misunderstood. The poster was talking about instituting 401K plans in place of government paid pensions and isn’t it true employers contribute to an employee’s contributions in a 401K? And who is the employer in these cases if not the government entity?
“Per your example, a $50,000 salary in TN buys a whole lot__”
—
There ARE people that prefer living in the North.I am one of them.
(Primarily weather related——not people related.):-)
.
.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.