Posted on 05/30/2019 11:23:34 AM PDT by george76
Without pension reform, progressive income tax amendment guarantees tax hikes on Illinois’ middle class. ( Full title).
The current progressive income tax proposal would fail to pay down the state's unfunded liability while damaging Illinois' economy.
On May 20, Democrats in the Illinois House Revenue & Finance Committee approved Gov. J.B. Pritzker’s prized progressive tax constitutional amendment. While the Senate had previously passed a new income tax structure – already different from the governor’s original proposal – the House Committee also passed the amendment without putting in income tax rates.
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progressive tax proponents need to face that without pension reform, Illinois’ crushing public employee retirement debt will consume every new dollar generated with a progressive tax – and will require further tax hikes to fully pay off pension debt, as Pritzker has advocated. Illinois could lose up to 95,000 jobs and the economy could suffer up to $18 billion in economic impact were it to try to use a progressive tax to pay off the state’s unfunded pension liability within 40 years.
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The state’s corporate income tax rate would also be bumped up to 7.99% from 7%.
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Illinois’ five state-run pension systems officially report $137 billion in unfunded liabilities, though Moody’s Investors Service has estimated the number stands at $232 billion. Despite the state spending more on pensions each year, these unfunded liabilities continue to grow.
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Instead of doubling down on tax hikes, Pritzker and state lawmakers should look at structurally reforming Illinois’ pension system through an amendment to the state constitution’s pension clause
(Excerpt) Read more at illinoispolicy.org ...
DEmocrats $crew up everything they are in charge of.
$o Bohica Illinois taxpayers.
Illinois’ crushing public employee retirement debt will consume every new dollar generated with a progressive tax – and will require further tax hikes to fully pay off pension debt
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Illinois voters getting just what they deserve. Vote for corruption and reap the whirlwind.
DEmocrats $crew up everything they are in charge of.
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And everything they touch. Hard to believe that more people can’t see that reality.
Another democrat utopia in trouble?
Yep. A lot of nonsense was going on in Washington state, where I lived for 46 years. Every time I voted, my “side” lost. I saw the writing on the wall and moved out of the state 8 years ago. Every piece of news I get from that area tells me I made the right decision.
The good Illinois people outside of Chicago are outnumbered by legal and ??? voters. So they can’t win a state or national election.
We have the same problem in Californicator Land. Conservatives are outnumbered by the LA, Bay and Sac area in state elections.
So, we can’t win state elections any more and many counties/cities are sure rat bets for legal and illegal voters.
They are actively trying to destroy the country state by state. with crushing debt they will fall easier to a federal bailout and rules and restrictions
My main residence right now is in a deep blue state. But I have made all the preparations to declare residency in another, saner state early next year. Like you, I am very confident it will be the right decision.
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