Killing Property Values
- An audible gasp went out in the breakout room I was in at last month’s pension event cosponsored by The Civic Federation and the Federal Reserve Bank of Chicago. That was when a speaker from the Chicago Fed proposed levying, across the state and in addition to current property taxes, a special property assessment they estimate would be about 1% of actual property value each year for 30 years.
Evidently, that wasn’t reality-shock enough. This week the Chicago Fed published that proposal formally. It’s linked here.
It surely ranks among the most blatantly inhumane and foolish ideas we’ve seen yet.
Homeowners with houses worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000.
Is the Chicago Fed blind to human consequences? Confiscatory property tax rates have already robbed hundreds of thousands, maybe millions, of Illinois families of their home equity — probably the lion’s share of whatever wealth they had.
The article makes a lot of assumptions, many of which will be hard pressed to pass in any event. And the website is a bit out-there, but in Illinois, anything bad is completely possible with the current crop of assholes in government.
Labels: state politics
posted by SCC at 12:01 AM
73 Comments:
All Illinois has to do is legalize marijuana . Look at the Millions and Millions being collected by Colorado , California, Nevada (Vegas). Again you got to drag these asshole politicians in Illinois into the 21 st Century. Same with the CHICAGO CASINO for our pensions we were promised,remember EMANUEL, You peace of SHIT ! Cant wait till the voters run you out of town ~ Be at the City Hall meeting next week everybody and show this Asshole the door !
I would think the Illinois Government better start some legislation and figure out how some of these towns are going to declare bankruptcy. They could raise all taxes 3% and there would still be pension debt for decades.
Instead of adding more taxes for the individuals who are already over taxed, why not cut back somewhere else ? Say we cut back on housing vouchers ? Why steal our money when they can just pull back the reigns for housing vouchers on the individuals who refuse to work because they can get by with working since they receive undeserved financial assistance ?
I’ve seen the numbers run, it’s actually quite plausible, though it would prompt a mass exodus. Keep in mind this doesn’t even cover the pension debt obligations of the city. Once the gubernatorial and mayoral elections are over, look for an amendment to the state constitution that will allow pension benefits to be changed. We are fucked.
Force us to live here then give 1st crack at Public School selection. Also, pay Police Officers that work the street and answer a radio, street differential pay. Cameras, Tasers , Time and Distance Oh My! The street cop deserves it or at least rotate inside spots with street police.
I can't wait to leave. Anyone buying property in the area is nuts! I only hope it holds together long enough for me to leave. Six years left.
A form of redistribution of the wealth. Read Bill O'Reilly's No Spin News from May 10, 2018 (billoreilly.com). He describes a meeting the Democrats had where the future agenda they might impose on the country is to give free healthcare, free college and reparations to blacks. This would mean seizing corporate and individual assets and going socialist. Take your money out of the banks and deferred comp and stuff it in your mattress!
This proposition was so outrageous, it became a national issue, when Rush Limbaugh brought it up on his nationally syndicated radio show last week. There can be no doubt that something drastic is going to have to be done, and that may include taxing all pensions in Illinois. And whatever the final decision, I have never heard so many people talking about leaving the State upon retirement, as I have heard lately. Not a scientific poll, but more and more people are talking about leaving, especially if they begin to tax pensions. We are witnessing some very unusual times. Baby "G"
Where’s is any type of “forensic audit?” Not just city finances,but the county and states books need sunshine! Make sure the pension board is audited like when they gave away over 60 million to Daley’s family for a filed real estate venture, that is our money, given by struggling hard working coppers, given away to the connections to the rich, how much more has been “secretly” invested?
Never say never. Seems like a good idea to me after all the taxpayers elected these fools so they are getting the government they asked for. Now suck it up and writ those checks.
the only positive i see is removing a crapper
will not earn you a break from this tax.
i bet your next governor finds
a way to protect the ruling class.
That’s why the guns must go
Hard to possibly think of revolting only armed with pitch forks and torches
My Tax guy told me about this in January. He said his Buddy who works in Springfield told him.He said if possible, move out of Illinois within the next 2 years. If this goes thru, We all are just more DOOOOOMED and I don't know how much MORE DOOOOMED we can all take...
Bleed the taxpayers dry. They will leave and only the Great Unwashed will remain.
The state is in a death spiral. Either the pension problem gets worse or you burden the public to fund the criminal mismanagement and cause paroperty values to tank with a mass exodus of the tax donkeys.
Or, just borrow a few more billion and kick the can down the road to the next administration. Sounds good until you owe more in interest on the loans than you take in.
That’s solvable by going BK. Kick the pension problem to the feds, pay the pensioners a dime on the dollar, and grandma gets to eat cat food.
Anyway you look at it,, more people will be going broke.
The house always wins.
anybody ask where these clowns live?
Cops own homes too. Some cops own more than one! I like how these goofs think we get everything for free. I wish.
One year left.... suck it lillnois
They pass this, and housing prices will plummet.
Get out now! Before prices take a dive.
Illinois is determined to drive all the Taxpaying Citizens Out!
Anyone want to bet that the people proposing this do not actually own real estate in Illinois? Just seems like another way for everyone to be forced into government housing.
It is a good idea. The special tax will go towards pensions.
Force us to live here then give 1st crack at Public School selection. Also, pay Police Officers that work the street and answer a radio, street differential pay. Cameras, Tasers , Time and Distance Oh My! The street cop deserves it or at least rotate inside spots with street police.
Look junior, you took this job to work the street. Now your on and decided it wasn’t going to be like TV. Quit bitching, get some time on and then bid for those desks spots. Remember, if all else fails you can always drop your pants and take it up wazoo for a spot! In the meantime, get your radio, taser, camera, phone and keys and go out and do what you signed up for. You are precisely why the draft should be reinstated. You have no self discipline. Nothing but a department full of candy asses.
Sooner or later, we in Illinois are all going to have to pay the piper. And if you have to raise taxes, I suggest it be the income tax rather than the property tax. The problem with raising property taxes is there comes a point where this will simply kill the real estate market. That's a problem because most people have the greatest percentage of their net worth in their home. And declining real estate values will negatively impact the banks as well, as well as the bank's willingness to make loans.
Most importantly, increasing real estate taxes places a unfair burden on those on a fixed income. Think little old ladies. Your mother, perhaps. And that scenario is where the phrase "getting taxed out of your home" comes from.
Illinois is in terrible shape, thanks to Uncle Mikey. Property taxes have already been raised enough. Let's look to other sources and methods to deal with this problem.
Call the next case. Not a cop.
Legalize gambling and marijuana, with all the tax revenue going straight to the pensions.
These aaaholes in office, lets call them democ"RATS", have raised every tax in the city, county, and state and have not done anything but dig a deeper HOLE! Where are the checks and balances, where are the jail cells full of corrupt politicians, where the FXXK is the justice? Start investing in lumber because sooner or later "hardworking taxpayers" are going to wake up and it will be time to build gallow's to accommodate the backlog created in the city over the last 30 years, just hope 9 1/2 and shortshanks are still around to collect their dues!
The 2 biggest lies in the world (cleaned up a bit) are "the checks in the mail" and "I'm from the government and I'm here to help you" I remember the line they used to sell us on the lottery. All the proceeds go directly to the school budget. We'll never, ever have another funding crisis for schools in Illinois again. How did that work out for us?
A few days ago there was an item here about how the Cook County Hospital leaked $165M.
Plug that leak and the others before looking for more money.
Democratic government: no matter how much money they get, it is not enough.
Work on your exit strategy. Don't end up like this guy.
All Illinois has to do is legalize marijuana . Look at the Millions and Millions being collected by Colorado , California, Nevada (Vegas).
5/19/2018 12:13:00 AM
====================
Legalize cannabis to raise taxes? Haahahhahaha. What Colorado has collected is “a drop in the bucket.” Stop believing stoner propaganda. Here's the reality:
https://www.washingtonpost.com/business/money-from-pot-taxes-doesnt-fix-colorado-teachers-problems/2018/04/27/74ce62a6-49e4-11e8-8082-105a446d19b8_story.html?noredirect=on&utm_term=.894eb0ef9995
Here's the other reality:
Illinois voters WANT the Democrats to run this state.
The Democrats will be 100% in charge after the November election – governor, house and senate.
Madigan will have no obstacles after the November election.
When Pritzker gets sworn next January, the death spiral will kick into turbo speed.
This is what Illinois voters want, and this is what they will get.
The endless stream of foreclosures will also begin. You can't sell except at a fire sale, so now your house is worth 40 to 50K less because the taxes went up 3000K a year on top of the outrageous bill already. Plus, when the mortgage co., tells people we have to start collecting 300 more a month, there will be plenty of households that cannot absorb it and will end up losing the house and may not be able to sell it. The banks and mortgage companies are the ones who should be screaming, including hiring more people for the collection department to call people who just cannot pay any more than they are.
The State of Illinois is broke, Cook County is broke, and The City of Chicago is broke. All due to fatally flawed liberal economics. Those that can leave Illinois will, and all those debts and unfunded pension liabilities will fall on those who can’t leave, and eventually you run out of people to tax. It’s time to “Make Chicago Great Again”, and vote out all Democrats and their spend and tax policies. The math is broken folks and we’re bankrupt now.
This notion was also covered locally in a Daily Southtown article.
The reporter advocated exempting Southland property owners while pushing the new 1% tax onto "people in Winnetka, Lake Forest, Hinsdale, Oak Brook and other affluent burbs" who "should pay more, one way or another".
Problem being of course that those are the very people who COULD take a hit and leave their property behind. At which point they'd have every incentive to donate it to a non-tax paying charity.
http://www.chicagotribune.com/suburbs/daily-southtown/opinion/ct-sta-slowik-statewide-property-tax-st-0518-story.html
Anonymous Anonymous said...
I can't wait to leave. Anyone buying property in the area is nuts! I only hope it holds together long enough for me to leave. Six years left.
5/19/2018 01:44:00 AM
Not sure about that I live in South Edgebrook, basically Jefferson Park, not even Sauganash, Wildwood or Edison Park and recently the last 5 or so homes have sold in the mid 400’s to the high 400’s, a few over $500,000. They don’t stay on the market long so someone is buying them
OT. Arena’s pet project at 5150 Milwaukee just got spanked yesterday by the Illinois Housing Development Authority after they decided not to award tax credits to that housing development. Those tax credits are crucial in getting funding for the development, especially seeing that it has been downsized already making it less financially stable
Gotta love their thinking, all these 5,000 s.f. suburban financial eggheads making +$250,000 a year advising Rahm (et al) to raise taxes to solve the city/county revenue shortages.
Wouldn’t the City be better off not spending (wasting) money.
It’s not revenue...it’s spending.
Plenty of money coming in but where it goes nobody like The Civic Federation questions.
Why couldn’t the Civic Federation think of saying that?
Keep in mind that the Civic Federation supported just about EVERY tax increase and operational budget for every City-County agency from CPS (always a failure) to Water Reclamation.
If they ever point out flaws in civic financial matters, it’s always ignored by the Elected leaders.
Ever hear politicians saying they followed the advice of the CF?
Nope.
Spend-Spend-Spend and nobody challenges that notion.
How the in the f6ck PrickWrinkle was re-elected after that soda pop taxation???!!!
Idiots keep electing spendthrift Democrats.
I thought economists were supposed to be smart.
I would guess that at some point property values would dwindle sufficiently that the
additional 1% tax would provide about the same revenue stream as before.
In addition, the people left holding the bag up front "through an immediate reduction in home value" would have every incentive to just walk away from their now under water
mortgages.
Ya know I might do it if I knew that they weren’t going to blow the money on illegals and people who produce nothing and have no plans to produce anything.
All Illinois has to do is legalize marijuana . Look at the Millions and Millions being collected by Colorado , California, Nevada (Vegas). Again you got to drag these asshole politicians in Illinois into the 21 st Century. Same with the CHICAGO CASINO for our pensions we were promised,remember EMANUEL, You peace of SHIT ! Cant wait till the voters run you out of town ~ Be at the City Hall meeting next week everybody and show this Asshole the door !
5/19/2018 12:13:00 AM
Is that all?
You do realize that a million is 1/1000 of a billion right?
SIMPLE SOLUTION
End all public pensions. Have actuaries determine each participant's funded balance, distribute it to them, have them roll it over into an IRA, and start a 401k/403b that the participants can fund with their own money. Something now is better than nothing later. Make no mistake about it. Many will get nothing. The underfunded situation is that bad.
Illinois Fucking liberal democrats are too stupid to hear how stupid they
sound .....raising taxes for 40 years straight to pay bloated pensions, means house
values drop a lot to pay for more deadbeats ..illegals...then , no tax money can be
funneled into more democratic waste
Illinois Fucking liberal democrats are too stupid to hear how stupid they
sound .....raising taxes for 40 years straight to pay bloated pensions, means house
values drop a lot to pay for more deadbeats ..illegals...then , no tax money can be
funneled into more democratic waste
5/19/2018 02:23:00 PM
The factual nature of most to all public employee pensions being Bloated, including All publicly employed, (aka, paid via various taxations of all residents), said pension terms being bloated beyond all those taxpayers Not publicly paid ability to comprehend just how greedy the public employed can be, is the crux of the matter.
No honest person could possibly believe that these bloated pension payments would be sustainable into perpetuity.
So, while politicians, and their minions, are expected to not give a fuck about honesty, the vast quantities of other, actually earning their wages, public serving employees are included in this basket of bloated pension obligations, serving the dishonest politicians, and their minions, ample effective covering in this inevitable total failure and collapse of the house of cards public employee pension scheme constructed by said dishonest politicians.
All sources of yet developed additional revenues, which could be utilized to prevent this collapse, will, by the dishonest politicians, and their minions, instead, be funnelled off into thieveries, as is the traditional practice and intent of the dishonest politicians.
The reaction to cries from the taxpayers, to reduce said bloated pension payouts, will be met with vigorous objections, with the bent politicians using the public employees, who have actually earned their wages throughout their careers actually serving the public, as an effective buffer/concealment to the dishonest politicians', and their minions', disgustingly Bloated pension payouts.
The Lies, Deceptions, Distortions, and Pilferings will flow like the River of Volcanic Diarrhea which it is, with the actual public serving employees caught and stuck firmly atop the flow, just where the politicians want them to be, visible to the taxpayers and concealing the immense quantities of politicians, and their minions, who occupy the most mass of the diarrhetic river.
Greed is the essence of the politician's purpose to exist.
Greed is Rocko: "More is never enough".
The honest public employees, having actually earned their wages serving the public, also hold dear their having earned their agreed to pension payouts, even when they, honestly, admit said pensions are a bit more generous than seems actually possible for them to be, and still be honestly reasonable to expect.
Honest public employees do have ways to not be the pawns that the dishonest politicians have contrived them to be.
Submitting to being the pawns, by vigorously defending the politicians' pension scam is not one of them.
Golf Tango Foxtrot Oscar
Exactly why Illinois will be the first state to declare bankruptcy. Sell now and get out or at very least sell now when values high and rent. But no you will continue to elect democrats until they take absolutely everything you have of value then you'll be crying like stuck pigs. You deserve what your getting for voting the way you do. I LOL from the comfort of another solvent state.
Anonymous said...
SIMPLE SOLUTION
End all public pensions. Have actuaries determine each participant's funded balance, distribute it to them, have them roll it over into an IRA, and start a 401k/403b that the participants can fund with their own money. Something now is better than nothing later. Make no mistake about it. Many will get nothing. The underfunded situation is that bad.
5/19/2018 01:49:00 PM
I'm all for it! They already diminished my Social Security Benefit and they are working on my Health Benefits as we speak. While you're at it take my house and car too. Give more money to the FXXKING DO NOTHINGS AND ILLEGAL IMMIGRANTS. While you are at it, FXXK IT take the Social Security too! I'll get another job in my retirement so I can live and these MOTHER FXXKING DEMOC"RATS" can keep FXXKING STEALING......IN CLOSING FXXK OFF!!!
I'm already actively seeking employment OUTSIDE of this fucked up state. Sell the house, move everything. The wife and kids are going - so that's another employee with taxes leaving. Kids aren't going to be in the schools here - so more money lost for the local schools.
Parents are going to sell their house and move too - they're retired. They've been "cleaning" the house for the past few years preparing for the exodus.
My brother's got a business, wife, couple of kids, inlaws - they're all moving. Everyone I know is exiting this sinking shit ship...
Let the Demonrats have it. They can play with the savages downtown.
i live in 016 and my property value is already down. There is nothing of value left for me in this city. Cannot wait to pull my pension and leave this once great city.
Anonymous Anonymous said...
i live in 016 and my property value is already down. There is nothing of value left for me in this city. Cannot wait to pull my pension and leave this once great city.
5/19/2018 10:36:00 PM
Don’t know where you live in 016, but you must be the unluckiest guy in the world.
It does not matter much where the money to fund the gold plated pension plans of government employees comes from. It will be coming from taxpayers. The bottom line is if they raise the income tax, or the sales tax, or real estate taxes, or whatever, they would still need to raise the same amount of revenue if they actually fund the pension plans. The 1% RE tax only deals with the state retirement plans and does not deal with local government plans which are in a world of hurt too.
The share of the unfunded retirement liabilities in total is somewhere between $40,000 and $50,000 per household. Personally, I am at a point where I am willing to just take that $50,000 and move across the border into WI.
My suggestion for city employees who are forced to live in the city would be to try and sell your houses and rent. That way you have nothing to keep you here when you can get out. The longer you wait the worse the situation will get. Especially if your kids are out of the house. Sell while it is still worth something. The day is coming when you won't get much of anything for it. And chances are when property values crash, you will be upside down and can't sell. Most people do not have much equity in their homes so even a ten percent drop in the value of their homes would make it very hard for them to get out.
It has been historically Cheaper (property tax wise) to live in the city than the Suburbs...I guess that's out the window. The suburbs will really be suffering. Time to retire and move out of state anyways...that's if this jewel of an idea get any traction...
raising taxes thru cannabis legalization is a start. so is all sports book making and how about slot machines at ohare and a downtown casino. also a 2.oo extra tax on o'hare takeoffs/landings. no doubt cuts in services will also have to occur. the problem can become manageable but where is the political will.
The taxing of real property, (more honestly stated as the imposition of a monetary payment, on a reoccurring basis, being demanded paid, under penalty of the use of violent force to confiscate said real property from the possession, usages and enjoyments of it's nominal owner), is effectively the nullification of actual property ownership.
Yes, boys and girls, we in this state are not actually the owners of our real property.
Even those who've rendered their real property free of debt are actually renters of said property, as the failure to pay those property taxes will prove.....when the overlords send their enforcers to violently confiscate said property and vigorously remove any who claim ownership.
Revolting, ain't it?
raising taxes thru cannabis legalization is a start. so is all sports book making and how about slot machines at ohare and a downtown casino. also a 2.oo extra tax on o'hare takeoffs/landings. no doubt cuts in services will also have to occur. the problem can become manageable but where is the political will.
5/20/2018 02:36:00 PM
1. The political will, of the politicians and their minions, is where it always is......
2. The citizens/taxpayers' will is disregarded, as it always is.....
3. The concept of fixing this specific problem is folly at it's most foolish......
4. This problem is not fixable. It has been designed to be not fixable. It has always been intended to be not fixable. It was never about sustainable pension payouts to all so covered. It was always about what it is always about: Graft. Thievery. Fraud.
5. The concept of the "Public Trust", to the politician, can be summed up as follows: (politician) " I strive to get the public to trust me, so I can fuck the public with impunity..... Uhhhhhhh..... don't nobody tell the public that.... OkieDookie???"
So..... Bloated Pensions.... Golden Pensions.... What the fuck ever..... It's all one of the many versions of the Sleight of Hand tricks of the political class of Grifters, (which is most all of them). If politics is your career choice, you are a Thief.
It has been historically Cheaper (property tax wise) to live in the city than the Suburbs..
========
Depends. Cook County has a special deal where instead of the 33% assessment that the rest of the state has, residential property in Cook County is only assessed at 10% of fair market value. The state applies some kind of multiplier that kicks it up to about 25% of FMV. It is still lower than the rest of the state.
personally, I have never understood why they don't just use FMV across the state.
personally, I have never understood why they don't just use FMV across the state.
5/20/2018 07:07:00 PM
I believe you. Personally.
I believe you have never understood.
Period.
Anonymous Anonymous said...
All Illinois has to do is legalize marijuana . Look at the Millions and Millions being collected by Colorado , California, Nevada (Vegas). Again you got to drag these asshole politicians in Illinois into the 21 st Century. Same with the CHICAGO CASINO for our pensions we were promised.
We already have Rivers Casino and several IN casinos that the south side can get to. A Chicago casino wouldn't be as great as it seems. Legalizing marijuana in Chicago would generate revenue but at what cost? It would increase car accidents and make the homeless situation even worse.
Anonymous Anonymous said...
It has been historically Cheaper (property tax wise) to live in the city than the Suburbs..
========
Depends. Cook County has a special deal where instead of the 33% assessment that the rest of the state has, residential property in Cook County is only assessed at 10% of fair market value. The state applies some kind of multiplier that kicks it up to about 25% of FMV. It is still lower than the rest of the state.
personally, I have never understood why they don't just use FMV across the state.
After your explanation, the bottom line is the poster was right. City property taxes are historically less than the suburbs. Doesn’t matter how they calculate the taxes, it’s how much you pay
Speaking of that the city gets reassessed this year. We will see how that goes now that Berrios has been voted out. Might not be business as usual
Anonymous Anonymous said...
The taxing of real property, (more honestly stated as the imposition of a monetary payment, on a reoccurring basis, being demanded paid, under penalty of the use of violent force to confiscate said real property from the possession, usages and enjoyments of it's nominal owner), is effectively the nullification of actual property ownership.
Yes, boys and girls, we in this state are not actually the owners of our real property.
Even those who've rendered their real property free of debt are actually renters of said property, as the failure to pay those property taxes will prove.....when the overlords send their enforcers to violently confiscate said property and vigorously remove any who claim ownership.
Revolting, ain't it?
No scary the way you are writing about it
personally, I have never understood why they don't just use FMV across the state.
5/20/2018 07:07:00 PM
FMV.
Fair Market Value.
The taxation of real property calculated using the present Fair Market Value of said property as the basis of each real property owner's tax obligation/burden.
One of the many devious schemes cooked up by the pilfering politicians.
The greater the theoretical value of your real property, the larger your portion of the total taxation imposition shall be.
There are only two ways an owner of real property can experience the benefit of this "fair market value":
1. Sell the property.
2. Borrow upon this FMV to the maximum a given lender will loan.
That's it.
To those who do not sell or borrow, the FMV of their property is of no positive value and, since the FMV is applied as a determinant factor in the calculation of reoccuring taxation, it, the FMV, is effectively a negative value, ie., a cost/deficit, not an asset. Thus, for those who haven't borrowed to the maximum, your portion of taxation is based upon a negative, absence of value.
The FMV is also a substantial fiction, as it is always based upon the meager similiarities between properties which have been recently sold and properties that, often, have not changed ownership in decades.
The honest means of calculating a property's value, besides it's actual, recent selling price paid, is the balance amount currently owed to any/all lender(s), which would be an accurate assessment of the actual benefit enjoyed by the owner.
So, the politicians have constructed this scheme to tax the max out of any and every property owner who chooses to not maintain their property as a crumbling shack of no imaginable value.
As stated..... Devious.
No scary the way you are writing about it
5/20/2018 10:04:00 PM
The tip of the iceberg.......you want scary.....imagine just what lies beneath the surface...
Even if you legalize and tax cannabis, by the time you skim the graft and corruption payments off the top all estimates will be woefully short.
i live in 016 and my property value is already down. There is nothing of value left for me in this city. Cannot wait to pull my pension and leave this once great city.
5/19/2018 10:36:00 PM
Don’t know where you live in 016, but you must be the unluckiest guy in the world.
I agree. Unless you bought in ‘08 at the height of the market then put a huge overpriced addition on the property you should have equity in your home. Did you take cash out and refinance that mortgage maybe? Unless you made some really foolish moves there is no way your house has gone down in value.
So let me get this straight, I’ll be paying an additional $175,000 for my small house nestled in a shithole banana republic full of roving gangs of mongol hordes? Yeah, fuck you chicago, 10 years to retire and you can have this shit. I’ll save 2/3s of that and will never spend a dime in this parody of a free and modern city. Real estate clown from 001, can you sell my place in 10 years?
Don’t know where you live in 016, but you must be the unluckiest guy in the world.
I agree. Unless you bought in ‘08 at the height of the market then put a huge overpriced addition on the property you should have equity in your home. Did you take cash out and refinance that mortgage maybe? Unless you made some really foolish moves there is no way your house has gone down in value.
5/21/2018 02:20:00 PM
You are right sounds like a very unhappy person and just adds bs to his comments. Nothing up here is selling for under 400K. He sure didn’t pay that in 08 and if he did it’s worth 500K.
"SIMPLE SOLUTION
End all public pensions. Have actuaries determine each participant's funded balance, distribute it to them, have them roll it over into an IRA, and start a 401k/403b that the participants can fund with their own money. Something now is better than nothing later. Make no mistake about it. Many will get nothing. The underfunded situation is that bad.
5/19/2018 01:49:00 PM"
Actually, not so simple. I'm guessing you don't follow Illinois politics or legal rulings. The Illinois Supreme Court already ruled several years ago pensions cannot be diminished in any way. I'd say your idea would be a problem.
There are no answers to the pension problems Illinois has that do not involve pain for employees and for taxpayers.
The first thing that needs doing is to put new state employees into a defined contribution plan. The state should put 10% in and the employee can put whatever they want to in. Zero if they want. Disability insurance and worker's comp would be completely separate. The state funds short term disability coverage and if the worker wants it he can fund long term disability coverage. But the state should not be running disability or workers comp. It needs to be handled by a legit insurance company.
State employees not covered by the defined contribution plan have their pension contribution levels increased by 1%.
Furlough state employees in the old pension plan one day a month and pay the savings into the state employee pension plans.
Hiring and pay freeze for all state positions. No positions filled until the number of state employees has dropped by ten percent. This would be by department.
End all public pensions. Have actuaries determine each participant's funded balance, distribute it to them, have them roll it over into an IRA, and start a 401k/403b that the participants can fund with their own money. Something now is better than nothing later. Make no mistake about it. Many will get nothing. The underfunded situation is that bad.
5/19/2018 01:49:00 PM"
Actually, not so simple. I'm guessing you don't follow Illinois politics or legal rulings. The Illinois Supreme Court already ruled several years ago pensions cannot be diminished in any way. I'd say your idea would be a problem.
5/22/2018 05:59:00 AM
No it’s easier for the commentator who had no idea what he is talking about to just make uninformed statements without understanding the pension and legal rulings governing it
Why on earth would anyone decide to buy a home in Chicago? Just rent. No home repairs, no property taxes, no home insurance, no PMI, no need to stay put. Don't like your neighbors, or perhaps the neighborhood is changing, simply find a new place.
Actually, not so simple. I'm guessing you don't follow Illinois politics or legal rulings. The Illinois Supreme Court already ruled several years ago pensions cannot be diminished in any way. I'd say your idea would be a problem.
-------
The court did not say that new employees cannot have a more affordable plan or that existing employees cannot have their contribution rate increased.
Anonymous Anonymous said...
Why on earth would anyone decide to buy a home in Chicago? Just rent. No home repairs, no property taxes, no home insurance, no PMI, no need to stay put. Don't like your neighbors, or perhaps the neighborhood is changing, simply find a new place.
5/22/2018 01:23:00 PM
He’s a reason. Actually a few reasons. About 4 years ago I bought a townhouse on the north side. Was 4 yrs old and I paid $225,000 and at the time mortgage rates were 3%. My monthly payment is $1,300 which includes principle, interest, pmi, insurance and property taxes, most of all is a tax deduction. I couldn’t find a comparable 3 BR 3bath townhouse to rent for less than,$2,000 none of which I can write off. Fortunately because it is under 10 years old, there has been minimal upkeep and repairs. So I’m saving $700 a month on rent and writing off on my taxes about $800 of the $1300 on my taxes because most of the mortgage is interest at the beginning of the loan and all the property tax is a write off
As a bonus, my neighbor just sold his almost identical townhouse for $335,000 so I guess if I want to move I will make $100,000 in like 4 years. So I guess I’m an idiot and should have followed your advice and have rented
So I guess I’m an idiot and should have followed your advice and have rented
5/22/2018 05:40:00 PM
Unless you are Scrooge MacDuck, it's not how much money you have, it's what you do with it that determines if you end up being that guy who stacked his fortune in the attic, figuring he'd take it with him when he departed, only to regret not stacking it in the basement.........
The government needs to pressure companies to offer pensions again once a common benefit. If you don't make it into upper management you will never be able to retire with a 401scam most people are not disciplined enough to save for their own retirement. I love how all you government workers feel like you are so entitled to a pension. Do you know how lucky you are most in the private sector will be working until the day they die? It's really upsetting knowing my tax dollars pay for your golden pension when I don't get one and will never be able to retire with dignity. Why can't Bezos offer pensions to all of his Amazon workers he is worth over a $100 Billion?
Unless you are Scrooge MacDuck, it's not how much money you have, it's what you do with it that determines if you end up being that guy who stacked his fortune in the attic, figuring he'd take it with him when he departed, only to regret not stacking it in the basement.........
5/22/2018 11:53:00
WTF are you talking about? Saving money. Putting it in attic. The response was for the comment. Who would buy in Chicago when you can rent. Response was buying is sometimes better. Saving money in attic and basement
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