Skip to comments.Jack up property taxes for pensions, say three Chicago Fed economists
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 economistsThomas Haasl, Rick Mattoon and Thomas Walstrumcalculated 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 ...
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 .....................
Why don’t they copy the Seattle employer tax? (Of course, I live in a neighboring state so I’d welcome the businesses that would run away screaming.)
Sure, institute a wealth tax to guarantee the mismanaged, overpaid, and corruptly generated pension obligations.
The life of a government apparatchik is easy and comfortable.
One way U-Haul business must be peaking.
Running 97% against.
Is this just the state pension debt? Would the city of Chicago need to levy its own additional tax to pay its pension liabilities??
What about literally every governmental unit in Illinois, with their own obligations, over and above the state obligation????
Where are you going to settle all those refugees from the Sucker State?
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.
I’d hate to be in the “late” group trying to escape. Who would buy their over-taxed property? Get out while you are still able to do so.
“Politicians say ‘more taxes will solve everything’.....and the band played on....”
I think the dem pols who voted for this should be assessed a 40% tax on personal property...no matter where they live!
Illinois Liberal politicians might view a property tax increase as a new government revenue stream from which they can spend yet more taxpayer money on more government pension increases and more “free” government services to the “needy”...
Yeah, just move away from ailing parents and jobs...
Years ago I turned down a nice company promotion because it would require me to move from the American south to CHICAGO!
Government manages things poorly, government seeks to steal cash from homeowners, homeowners say no.
They made their own bed.
LMAO. Right. And Illinois politicians will suddenly get religion and live within their means. No chance they will continue spending out of control, eh?
One word fits - NO!
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