Working at free market think tank in Illinois, it’s easy to get discouraged by bad policies. Despite the many problems Illinois faces, there is much to be thankful for. In the spirit of Thanksgiving, here are some of the things we are most thankful for this year: Illinois’ flat income tax. Illinois’ current flat tax...
THE PROBLEM Illinois’ $100 billion pension crisis is the worst in the nation. The Illinois General Assembly’s failed attempts to solve the pension crisis in the past have only perpetuated Illinois’ problem. Politicians have done nothing more than tinker at the margins of reform to avoid making tough decisions. The reality is minor changes won’t...
THE PROBLEM Illinois’ five state-run pension funds are more than $100 billion in debt, according to official state numbers. Without major reforms, the funds are headed toward insolvency – and that means retirees may see their pensions cut and younger workers may not have a pension at all. One of the biggest forces behind this...
The General Assembly Retirement System, or GARS, which offers a defined benefit plan for 294 General Assembly retirees, is nearly out of cash. Only massive taxpayer contributions are keeping the system afloat. Without those contributions, the system will run out of money in less than three years. Here are the facts on the insolvent GARS...
The Illinois General Assembly passed a record income tax increase on individuals and businesses in 2011. And Gov. Pat Quinn promised that it specifically was “designed to pay our bills.” By the end of the current fiscal year, lawmakers will have collected a total of $25.7 billion in new revenue from the 2011 tax hike....
Eighteen states made pro-growth tax changes during the 2013 legislative session. In contrast, Illinois introduced two pieces of legislation that would increase the state’s income tax. The 18 states that cut taxes this year did so across more than two dozen categories. Notably, a third of those cuts were in the personal and corporate income tax...
Chicago’s recent triple-notch downgrade by Fitch Ratings is a stark reminder that Illinois’ inability to solve its pension crisis has consequences. Illinois has the lowest credit rating of all 50 states. In contrast, three of its neighbors have maintained their AAA rating from Standard & Poor’s Ratings Services. Illinois has suffered 13 downgrades from the...
The pension crisis has left teachers at risk of losing everything they’re counting on for retirement. Teachers deserve choice and control over their future. The Illinois Policy Institute supports freeing teachers from the bad choices of unpredictable Illinois politicians. Here’s our approach for treating everybody fairly: Pension benefits earned to date are paid. Going forward,...
Yet another city is heading toward bankruptcy. Desert Hot Springs, Calif., a city of 26,000 in the south-central part of the state, warned it could run out of money as soon as March 2014. If that occurs, the city could be forced to file for bankruptcy. If that happens, Desert Hot Springs will be the...
Illinois’ corporate income tax rate is already the fourth-highest in the industrialized world. Yet some lawmakers want to push rates even higher. State Rep. Naomi Jakobsson, D-Champaign, wants swap out Illinois’ constitutionally protected flat rate income tax on corporations with a progressive income tax hike. And that would be on top of the fact that...
Triple-notch credit downgrades for government entities are supposed to be rare. They normally happen only in response to major financial events, such as a sudden fiscal emergency. But Chicago just received its second triple-notch downgrade in just six months. And that spells trouble for Chicago taxpayers. Citing skyrocketing pension costs and a lack of meaningful...
The Illinois General Assembly today approved a pension bill that requires taxpayers to pay an additional $75 million into the Chicago Park District pension fund in addition to tripling the taxpayer contribution to the troubled pension fund. Unfortunately, this bill is mistakenly being heralded by some as a potential model for pension reform. Make no mistake:...
Chicago Park District total debt: $1.4 billion The Chicago Park District is responsible for overseeing museums, beaches, parks, pools and other attractions. Chicago Park District has an annual operating budget of $410.9 million and employs approximately 3,000 workers. Chicago Park District’s debt burden totals more than $1.6 billion, including debt, health insurance and pension liabilities....
On Nov. 5, Colorado voters defeated a progressive income tax increase by a two-to-one margin — more than 66 percent of the voters said no to higher taxes. Colorado’s Amendment 66 was a ballot initiative to swap out the state’s competitive flat rate income tax for a progressive income tax increase. Specifically, lawmakers wanted to...