More Bad Ideas
The top Senate Democrat Monday suggested taxing retirement income for high-earning senior citizens for the first time to help lower income taxes that were raised in January.
Senate President John Cullerton (D-Chicago) said he would exclude Social Security income and avoid targeting those lower-income seniors who “don’t have much of a retirement income.”
Cullerton’s trial balloon would affect retirement income for those under 65. And in a late-afternoon committee hearing in Springfield, Cullerton suggested applying the retirement tax to those seniors making $100,000 or more.
Any guesses as to how many of these seniors will now make tracks for the border? Or declare their part-time homes in other "tax-friendly" states as primary residences to protect themselves? We're guess that it'll be a sizable number as has historically occurred in other states looking to balance out of whack budgets.
Labels: dumb ideas
posted by SCC at 12:03 AM
82 Comments:
They should put a tax on baggy pants, purple pop, rims over 16", zip lock baggies, and swisher sweets.
There won't be a retired teacher or gold braid left in Madiganistan!
The concepts of SPEND LESS MONEY, or lay off some of those 19,000 NEW hires from April 2010 to Jan 1 2011 just hasn't sunk in yet.
2012 do not vote Donk, even if your mother is running as one.
how about looking at all the fraud in handout programs?
They'll start with the upper income retirees; eventually all of us retirees will get taxed.
Get Ready boys and girls Don't let a crisis go to waste don't ya know?
---clip---
City and State employee pensions face the chopping block
March 4, 2011
By Jean Lachowicz
Phrases like “ticking time bomb” and “political tsunami” are being used to describe the pension situation for City, County, and State employees, as record-breaking government deficits put longstanding benefits in the cross hairs of budget-cutting proposals.
According to the Civic Federation, Illinois’s pension code allows State and local governments to avoid paying the actuarially required contributions for employees’ retirements. That fundamental flaw has been made worse by staff reductions and early retirement incentives as well as the current recession.
Laurence Msall, president of the Civic Federation, said, “People nationwide are starting to ask why Illinois and Chicago have allowed this fiscal recklessness to happen. That’s not an easy question for politicians to answer. But if we don’t take action soon, we may be beyond the point of fixing these problems.”
One significant issue highlighted in the Civic Federation report is a 75% decrease in the ratio of active to retired City and County workers since 2000, meaning there are fewer workers paying into a system that requires continuously increasing resources.
On Feb. 8, Illinois House Speaker Michael Madigan (D Chicago) outlined many of the decisions the Illinois General Assembly must face during the current legislative session. He warned there likely will be proposals to reduce pension benefits for current State employees.
“We’re all familiar with the inadequate funding of the State pension systems,” Madigan said. “Again, tough decision-making, telling people you’re not going to get everything you thought you were going to get, telling people you may have to pay in more. Not easy stuff. So we all better get ready for it.”
much, much more here
the pols fuck up waste our money while we're working and then want more when we're retired
Fuck them
If it's a government pension from Illinois, moving out of state won't help. In fact, If you move to Wisconsin, THEY will tax your Illinois pension, and if Illinois starts taxing, you'll be taxed TWICE on the same pension!
This is going to be going on EVERYWHERE as governments start trying to tax their way out on bankruptcy.
City pension funds strapped>We're talking taxes as far as the eye can see in Chicago
"
[...]
Over the past ten years, the unfunded actuarial accrued liabilities of the four pension funds combined have grown by $10 billion or 418%, from $2.4 billion in 2000 to $12 billion in 2009. This amounts to an increase from $827 to $4,348 per resident of Chicago."
Yeah don't mess with the "family now"
---clip--
Alderman to Rahm Emanuel: Back off Ed Burke
Mayor-elect Rahm Emanuel would have a tough time removing Ald. Edward M. Burke (14th) as Finance Commitee chairman — or even diluting the committee’s strength — because the City Council is a “family” whose members stick together, an influential alderman said Friday.
“It would be real hard for a lot of the aldermen to go against Burke. We’re all good to each other. We support each other,” said Ald. Walter Burnett (27th), chairman of the Council’s Black Caucus.
more >> http://www.suntimes.com/4138888-417/alderman-to-rahm-emanuel-back-off-ed-burke.html
Cullerton... Your a fucking idiot.. Why dont you go have a nice big cup of shut the fuck up!
Let's go after the bourgeoisie, I mean the rich, because they keep the proletariat, I mean, the working man, down and we have to make sure that there's socialist, I mean welfare systems, in place to protect our comrades, I mean voting block, from being victimized.
Do you still think this is your grand daddy's Democratic Party? You better wake up and start getting involved.
start calling people...
Taxes added to more taxes. I just watched the news and both the city and the park district pledged 5 million each to build a center for Jessie White tumblers. The park district backed out and the city stated they will pick up the other 5 million. While the city is crying poor they are giving out millions. What a joke. They just keep taxing us to death and giving more of our money away.
Stop giving money or public aid, whatever you want to call it, to everyone who has their hand out. If a person can stand on the street in the rain and cold for endless hours selling dope then that person shouldn't be getting public aid. If a person can run and jump fences while eluding the police then he or she is fit enough to work 40 hours a week and shouldn't be on the public tit. If a person is strong enough to fight the police then that person should have a job and not collect public aid. Welfare is not intended to buy booze, cigarettes, or illegal drugs. Being illiterate is not a disability in itself without additional illnesses or underlying circumstances. STOP THE WASTE before you tax the shit out of us.
The politicians are so stupid that it makes me want to scream!!! They are the worst business men in the world. All they want to do is tax tax and tax. Then they spend spend and spend. One would think they raise the state tax to fix the budget they would then decrease spending, but no they actually increase it. Now they want to tax more people. Illinois will have no productive people living here in the next 25 years. Democrat controlled tate.
Have to plead ignorance on the Ed Farley post. Can anyone post anymore info on him? Was he active or retired, etc. etc.
Don't these F-ing politicians EVER cut any crap out of the budget?
How about they start with their own inflated salaries and perks.
the house is up for sale
You Know;
It's just time to leave this miserable state.
Our bald-headed-prick-Governor says he's willing to look at this proposal in the interest of tax "fairness".
Fairness? Fair to whom? You work your entire life, save your entire life, you do everything right your entire life...just to have it taken away to be given away to some fucked-off social program.
The GOP is going to sweep this entire state in 4 years...doesn't matter if Lisa Madigan has $100 million for her campaign.
What do you think the odds are that state politicians will be exempt?
Y'all come on down to Flawida. No state income tax, housing is incredibly cheap at this point, and no Madigan, or Quinn to watch whittle away your hard earned savings.
He must drink and drive with his kid in the car that the State owns to come up with these ideas.
Do you think this will help his brother in the run-off for AlderFxxk?
I bet he would exclude the pensions of Illinois politicians.
I hope he got good and burnt on that third rail.
This is more of the Democrats economic view of "Redistrobution of Wealth." Let other people earn it and then take it away. He would be taxing my pension to give it to illegals.
CUT THE POLITICIANS CUT THE ALDERCREATURES AND THEIR SECURITY AND THEIR TAKE HOME CARS AND THEIR SLARIES AND BENEFITS!!!!!!most have never had a real job
Was at the grocery store yesterday buying formula for my kid. I bought one can cuz it costs a freakin fortune. In front of me was a young lady, no older than 25. She was also buying formula...5 cans of the same stuff I was buying. Then I saw her filling out her papers to get it all paid for on my dime. She also had 4 bags of fresh fruit, milk, cereal etc, which I paid a boatload for, and she ended up paying only $7.49 when all was said and done. So all of you politicians out there that want to take more of my hard earned money when I retire...GFY. Stop giving free handouts to these useless mopes that are too damn lazy to work for a living, and maybe we'd all have a little more spare change to pay the bills.
Phil Schitz here said...
They'll start with the upper income retirees; eventually all of us retirees will get taxed.
3/08/2011 12:26:00 AM
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You are right on the money. These bastards won't stop until they've turned this flat, boring, lousy climate state into a place devoid of working people and over-flowing with those that won't work. They act like we have New York City, DC, L.A. and San Francisco contained in our borders the way these fools tax us. And all of this plus the climate of San Diego. When are these fools going to realize that this state isn't any more interesting than Indiana?. But at least Indiana has concealed carry and some conservative politicians and voters.
Have to plead ignorance on the Ed Farley post. Can anyone post anymore info on him? Was he active or retired, etc. etc.
3/08/2011 03:04:00 AM
how about you just ask someone face to face?
you do remember how to do that, don't you?
they will tax the dead next!
i think the USA needs a day of rage!
Cullerton comes from a long line of crooked politicians.
His father "Parky" made Paul Powell look like a piker with his thievery.
His son gets a cushy state job with a state car, gets a DUI in it and gets away with it with a slap on the wrist.
No Justice, No Peace Don't fuck with our Pensions, you Prick.
tax the unlicensed food vendors in the 10th police district , 100's of them , maybe paying a street tax to someone , but not paying a penny in state or federal tax
fine home owners with 3 and 4 families living in a bungalow
charge illegals tuition attending our public schools
get rid of 30 aldercreatures
chicago is the 51st state of the union--- illinois has the bad luck of chicago being within its borders--- chicago is one of the most crooked cities in the world--- it's a shame because it really is a beautiful place but the current policies in place and about to take place will force many to leave--- many have already left---
OT
After 10 years in Chicago, I finally got a promotion with my job that allows me to leave this nearly bankrupt state and city.
I wanted to say thanks to the CPD as a whole. Over the last 10 years you guys taken too much crap and are given so little. Keep up the good work. I look forward in a few weeks to see the city in my rearview mirror.
P.S PLEASE INDICT DALEY BEFORE HE LEAVES OFFICE!!
Y'all come on down to Flawida. No state income tax, housing is incredibly cheap at this point, and no Madigan, or Quinn to watch whittle away your hard earned savings.
3/08/2011 06:02:00 AM
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Sorry, but if the pension is 'earned' from Illinois, the taxes are taken out before you ever see the check. Doesn't matter WHERE you move to.
Me, I'm leaving anyway. Between obscene real estate taxes, parking gouging, the additional downtown district tax, the reduction in police coverage, the lessening of City services, gun registration... well, it's time to take my lifelong Chicagoan self somewhere else with a lower cost of living and a less intrusive government body.
The Cullerton family has been involved in city politics for over 80 YEARS! Time to get rid of this criminal family once and for all. He should get his family members to stop stealing, the budget would see significant improvement right away. Let's cut welfare to those who have been on it for generations. Conduct drug tests on those getting any form of government money(I'll pay more in taxes for that)investigate disability claims. Can't tell you how many mutt's I've come across who are getting money for disability because they have asthma. Stop messing with the working man. Help the helpless, FUCK the clueless.
Dear Mike Shields,
As our newly elected President of FOP I know that you have nor been sworn in yet. But as our Pension Representative you have been on the job for a while now. Could we get a comment on how we/you are going to handle this? I do not think the GOP Reps will vote for this so it may just be a trial balloon.
Anonymous said...
Illinois Senate President John Cullerton (DEMOCRAT) wants to start taxing retirement income, including 401(k) and pension plans.
Your a goof its for High income -- When are you high income? that's over 100 thousand a year after deductions
3/08/2011 01:21:00 AM
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No, you're the goof. Maybe you don't have enough time on to remember when the City got its foot in the door on healthcare by just taking a couple of bucks out of each check? Then, WHAM!
First, the 'high income' checks. Next year, you and me.
not every wealthy retiree has truly earned their wealth.
unless you subscribe to the philosophy of 'by hook or by crook', which is the dark side of the American Way.
Terrible idea, but at least hes excluding seniors 65 and over. Would be bad for guys who retire at 55 for ten years, but would not affect the older retirees that are over 65
Give your pension a 5% raise, seven states -- Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming -- impose no state income tax
Gov. Christie from N.J. was right
The Great Pension Debate. A detailed analysis of the Illinois Constitution’s pension clause.
Over the course of the past two years a great legal debate has been brewing. It’s come at a time when lawmakers and Governors in states all across America have called for cuts to public employee benefits – especially pensions.
One of the state’s most vocal advocacy groups for reducing the retirement benefits of public employees is the Civic Committee of the Commercial Club of Chicago. Their enlistment of the prestigious law firm of Sidley Austin LLP has repeatedly made the argument that benefits for public workers can be diminished by maneuvering through the pension clause of the Illinois Constitution.
Can Illinois lawmakers break the pension promise with workers? What was the intent of the Constitution’s framers in 1970? What did the media at the time report about the issue? What have the courts said?
Those are among the questions that attorney Eric Madiar, Chief Legal Counsel to Illinois Senate President John Cullerton, began asking about Article XIII, section 5 of the Illinois Constitution.
Madiar’s 76-page analysis of this clause is comprehensive and concludes that welching on public pension promises is not an option for Illinois as some legal and civic commentators have suggested.
www.illinoissenatedemocrats.com
Anonymous said...
the house is up for sale
3/08/2011 04:33:00 AM
the senate too
Let's go after the bourgeoisie, I mean the rich, because they keep the proletariat, I mean, the working man, down and we have to make sure that there's socialist, I mean welfare systems, in place to protect our comrades, I mean voting block, from being victimized.
Do you still think this is your grand daddy's Democratic Party? You better wake up and start getting involved.
------
Here's a better idea. Let's simply not pay your fucking pension.
We'll give you back the money you put in and let you invest it.
Good luck.
I'm a retired p.o. And have worked for over 40 yrs. Of my life raised my family and never missed any of my obligation. Was never given a free phone with 250 hrs. No lunch money for my kids or after school babysitting we also paid for our kids educations Thur college and now you say I should pay more how about you kiss my ASS Cullerton and all you other money grubbers.
I will be moving to another state the day after i retire!
FUCK ILLINOIS!
This place sucks balls!
Da Pelon
I’ll bet the politicians pensions will be exempt from this bill.
Y'all come on down to Flawida. No state income tax, housing is incredibly cheap at this point, and no Madigan, or Quinn to watch whittle away your hard earned savings.
3/08/2011 06:02:00 AM
No thanks. Back in the day it was where the snowbirds would flee. Now it is the land where the shitbirds flee.
Is it true alderman get 80% after one term, if so lets start there
Let them fuck with the entitled ones and leave the average pension alone!
I believe that this man should be targeted in the next election for defeat.
F*ck these asshole politicians!
Anonymous said...
Cullerton... Your a fucking idiot.. Why dont you go have a nice big cup of shut the fuck up!
3/08/2011 01:05:00 AM
----------------------------------------
Nearly half the goofs in the 38th Ward voted for another Cullerton as alderman. When are these people going to wake up?
The GOP is going to sweep this entire state in 4 years...doesn't matter if Lisa Madigan has $100 million for her campaign.
3/08/2011 05:48:00 AM
Bullshit. Look at the voting results for mayor. How many city employees did not vote? We are our own worse enemies. We voted Quinn in. There are enough mindless democratic robots to vote the same every election.
So when do we start to get active? Everyone of us should be taking some sort of action, no matter how small, silence is death. Rahm has a new site Chicago2011.org, Cullerton, Quinn, and Madigans all have phone and e-mails that should be flooded with complaints about cutting or taxing pensions. I would love to see the new FOP start right now, organizing petitions, buses to springfield, working in conjunction with the other unions. I know some will say it will backfire but guess what? The alternative is to get steamrolled, without a fight.
Cullerton wants YOU to pay for YOUR service. But for him and his colleagues .... don't want their pensions tapped or reformed.
Quinn wants YOU to be fair and ReDistribute the money you earned your whole working career and give back.
So many lifetime politians double and triple dipping into pension funds and we with only one, have to be taxed on reduced benefits.
Essentially, Republicans get blamed for union busting while Democrats refused for years to meet mandated pension contributions making it appear the Dems support our collective bargaining rights.
Never expect a Democrat to reduce benefits & fraud in the "entitlements" they dole out to the trolls of society.
What we need is a modern day Robin Hood to take on the greedy politicians taxing us to death.
"The son of Illinois Senate President John Cullerton pleaded guilty in Cook County traffic court Friday to driving drunk in his father’s state-owned SUV last April."
Now that's something we can tax. Fish Lips never stops amazing me.
Increasingly, there have been more people in Illinois going on the "Dole", an Irish term used to describe Public Assistance.The Pols are going after Middle class money in the form of Taxes to support these low income people. Notice I have not brought race into it.The Dems need the votes of these people as they are increasing in numbers as opposed to the tradition of Democratic votes of the middle class: IE: Unions and tradesman of every color.As a City Police officer I have observed these political machinations for some time. The problem lies with voting Republican, for they are more than willing to take your hard earned benefits away to take care of their corporate friends.If all Government workers Unions joined together we would be a powerful group to be negotiated with and maybe we could fight United ,for the rights we have and not have them taken from us with no resistance! As an afterthought I wonder why the Teamster Union backed Rahm as Mayor even though He stated he was coming after concessions after they agreed to them with Daley? Sorry for the long diatribe , but I'm nearing an uncertain Retirement , and like many I've worked lots of side jobs to educate my children , while many citizens have not,and all I want is the deal I was offered in 1986. Thank you for your time.
Anonymous said...
they will tax the dead next!
3/08/2011 08:44:00 AM
they will tax only the dead that don't vote
Yes no money for pensions but Daley gives out a contract for 2 million dollars for solar powered garbage cans. Was in the Sun Times a few days ago.
If it's a government pension from Illinois, moving out of state won't help. In fact, If you move to Wisconsin, THEY will tax your Illinois pension, and if Illinois starts taxing, you'll be taxed TWICE on the same pension!
This is going to be going on EVERYWHERE as governments start trying to tax their way out on bankruptcy.
3/08/2011 12:38:00 AM
Regarding your first paragraph, at present, you are in error.
Chicago Bulls. Go team go! Make the Miami Heat cry! I hope the Bulls win it all. We, the police will be called out for overtime, win or lose, just like the Jordan days. EXCEPT THIS TIME WE WILL LET THE BEAST HAVE MICHIGAN AVENUE FROM THE RIVER TO THE WATER TOWER.., Them, Mayor Rahm, start your shit about cutting police pensions
SCC, for the first time in a looong time, I suspect we disagree on something.
There will be taxes and cuts. Zero Hedge (fringey, conspiratorial, but often correct) is quoting TrimTab's founder as stating that entitlements are now a bit greater than 1/3r of all wages and salaries in the U.S.
One of the regular posters on Calculated Risk last night found that excess federal spending today is in the ballpark of 40% of all individual income in the U.S. That's just the excess spending, and does not include what is being paid for in taxes.
Last month, February, was the largest deficit in U.S. history... along the order of 240 billion dollars.
Finally, since 2000, the average tax actually paid per worker in the U.S. has declined. I had to read it twice when I read it, but its actually true, and significantly.
Taxes suck, but freeloading seniors are just as bad, and will be a drain on any state they live in with this kind of spending.
So IMHO taxes will need to be raised, all sorts of spending has to be cut (including military, social security, medicare and medicaid), and even then its going to be difficult ever reaching even again.
Everybody better be prepared for a lot more pain than there is today. The world is in chaos, and it will be felt in every last corner before its done.
OT
After 10 years in Chicago, I finally got a promotion with my job that allows me to leave this nearly bankrupt state and city.
I wanted to say thanks to the CPD as a whole. Over the last 10 years you guys taken too much crap and are given so little. Keep up the good work. I look forward in a few weeks to see the city in my rearview mirror.
P.S PLEASE INDICT DALEY BEFORE HE LEAVES OFFICE!!
3/08/2011 10:16:00 AM
=
God bless ya! Much success on your escape! (Take me with you?)
Anonymous said...
He must drink and drive with his kid in the car that the State owns to come up with these ideas.
Do you think this will help his brother in the run-off for AlderFxxk?
3/08/2011 06:26:00 AM
In a few years Cullerton's kid will be like his cousin Pat who has 3 DWI's at the airport.
"The politicians are so stupid that it makes me want to scream!!! They are the worst business men in the world."
On the contrary. Politicians are the BEST businessmen in the world.
They spend all the money that we give them, tell us that they've mismanaged our money & spent/lost/wasted/pocketed it all and then we vote them in again and give them more money.
It's the Chicago, Cook County, Illinois way!
It's ok,
I'm rebuilding the park at Meigs field, building a bridge for bikes over the river, building more break walls, and more airport for a total construction cost of well over 10 billion.
You can call me Shortshanks Daley!
Ha ha ha!!!!! Suckers!!!!!
Here's a better idea. Let's simply not pay your fucking pension.
We'll give you back the money you put in and let you invest it.
Good luck.
3/08/2011 01:49:00 PM
That is what Rahm wants to do. He's a Republican, right?
Cullerton and madigan, STOP VOTING for THESE JACKASSES! Enough already!!! The two districts that keep voting them in, should have their voting privilages revoke. They are accomplices to these two white collar criminals, that are largely responsable for the failures of our illinois goverment.
Terrible idea, but at least hes excluding seniors 65 and over. Would be bad for guys who retire at 55 for ten years, but would not affect the older retirees that are over 65
Max retirement age (for now) is 63. You'd still have 2 years of being taxed. And who is to say that in that time they don't raise the age or lower the limit, say to 70 thousand?
It is a well known fact that Illinois has the best politicians money can buy.
I suggest that Cullerton Street have its name changed to Family of Thieving Assholes.
What we need is a modern day Robin Hood to take on the greedy politicians taxing us to death.
3/08/2011 06:35:00 PM
do you mean me?
Chalkie
"Cullerton suggested applying the retirement tax to those seniors making $100,000 or more. Any guesses as to how many of these seniors will now make tracks for the border?"
The legislature will then lower their sights and attempt to extract the same amount from poor retired people -- who will freeze to death while Obama builds "bullet trains" with the home heating assistance money...
The "baby boomers" -- the last generation to have savings accounts -- are a target for everyone.
"As the Baby Boom generation ages, companies explore ways to attract some of their $3.4 trillion annual buying power..."
http://www.cbsnews.com/
stories/2011/03/06/sunday
/main20039772.shtml
Anonymous said...
If it's a government pension from Illinois, moving out of state won't help. In fact, If you move to Wisconsin, THEY will tax your Illinois pension, and if Illinois starts taxing, you'll be taxed TWICE on the same pension!
Actually, I think that this was tried in California some years ago, and the courts shot it down. Taxes only apply to residents.
Sorry, but if the pension is 'earned' from Illinois, the taxes are taken out before you ever see the check. Doesn't matter WHERE you move to.
3/08/2011 11:13:00 AM
Huh? As far as the pension, you are using correct information about federal income taxes as though it applies to state income taxes. You are mixing apples and oranges.
"THIS TIME WE WILL LET THE BEAST HAVE MICHIGAN AVENUE FROM THE RIVER TO THE WATER TOWER..."
--3/08/2011 08:15:00 PM
...but only after pooling our funds and investing heavily, quietly buying up every plate glass window firm and stock of glass within 100 miles.
You don't have a mayor like Richard M. Daley for 22 years without learning something from him...
Huh? As far as the pension, you are using correct information about federal income taxes as though it applies to state income taxes. You are mixing apples and oranges.
3/10/2011 01:19:00 PM
if quinn/madigan have their way, apples and oranges will become the same rotting mass of putridity.
It is settled federal case law regarding taxing pensions by the state. State tax is figured and paid according to your state of residence, NOT the state or jurisdiction in which the income was earned that resulted in a pension. This happended many years ago when California wanted to tax pension no matter where you moved. They lost after a long court battle that went to the US Supreme court. However, you will find that there are only six states that do not tax pensions in some percentage. Illinois is headed for a graduated income tax system that will tax pensions. Don't forget, Minnesota is planning a 10.5 % state tax rate graduated up to 13.5%.
if quinn/madigan have their way, apples and oranges will become the same rotting mass of putridity.
3/11/2011 10:41:00 PM
True, but it seems you missed the point.
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