Illinois Makes its Move in Race to Bottom

2018 May 14
by bc3b

Lest you Kalifornians think maintaining your status as the state with the lowest standard of living is1 cake walk, be forewarned: there are people in other states that want this “honor.” They have you in their cross-hairs and they aren’t going to let you win without a fight. While you have more than your share, there are crazy liberals everywhere.

And we know that just as there are protected demographic groups, there also are protected classes of employees – with none more protected than government workers. If a Ford plant or a Carrier plant shuts down or there are layoffs, the media doesn’t seem to care. But when public employees’ jobs or benefits are on the line, the media suddenly becomes concerned.

The same is true of all progressives. Illinois, along with New York, New Jersey and several other deep blue states are contending with Kalifornia in the race to the bottom. Like Kalifornia, Illinois has huge underfunded public employee pension liabilities. Illinois’ problems go even deeper in that the state’s public employee pensions are specifically protected by the state constitution.

The solution: as predictable as a quarterback sneak with first and goal at the half-yard line (soak the taxpayers). Increase property taxes by 5% for 30 years to fund incredibly generous pensions. The tax increase doesn’t fund road repairs, better police and fire protection or improved schools and parks. It’s like continuing to buy oats for a horse after it has died.

Rush Limbaugh explains:

 

RUSH: The Chicago Federal Reserve has unveiled its solution to the pension problem. A speaker from the Chicago Fed — this is at an event that was sponsored by — it was last month — sponsored by the Civic Federation and the Federal Reserve Bank Chicago — Illinois has unfunded liabilities, particularly on pensions, that are off the charts.

“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.

“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,” a year for 30 years, on top of existing taxes.

Furthermore, you would not be able to escape this by selling your house and leaving. You know why? You’re not gonna be able to sell your house. Nobody’s gonna buy your house in Chicago with this kind of taxation on it.

And the people that come up with these rules — this is the reasoning from the Federal Reserve Bank of Chicago. ” New taxes wouldn’t affect people thinking of moving to Illinois. While they would have to pay higher property taxes, that would be offset by not having to pay as much for their new homes. In addition, current homeowners would not be able to avoid the new tax by selling their homes and moving because home prices should reflect the new tax burden quickly.”

In other words, they fully expect the value of you in Chicago and Illinois who own your homes, the value of those homes to plummet with the application of these new property taxes. So people arriving in the state are gonna be able to afford your house because you’re gonna have to practically give it away, which means you’re gonna lose every bit of equity and wealth you have in your house if you try to sell it and leave.

“Current homeowners would not be able to avoid the new tax by selling their homes and moving because home prices should reflect the new tax burden.” That means nobody’s gonna want to buy. They’re admitting, they’re admitting that the dynamic results of this is going to be to destroy the Illinois housing market, but that they have to do it to come up with some money to help fund underfunded pensions.

So, in other words, they’re just gonna confiscate wealth from current homeowners because they will pay, whether they stay or not, through an immediate reduction in home value. This proposed tax will only address five state pensions. There are 650 other pensions in Illinois, particularly those who overlap jurisdictions in Chicago, which are grossly underfunded.

Read More:

Hat tip: RushLimbaugh.com

10 Responses leave one →
  1. 2018 May 14 4:56 pm
    [1]
    bc3b permalink

    Imagine a family spending $5,000 or $10,000 a year just to fund a portion of the public employee’s pensions.

    When I left Chicago for Detroit in 1991, Illinois was in good shape and Michigan was a basket case. Gov. Jen (Granholm) made things even worse. Michiganders wised up. Republicans no control both houses of the state legislature and the governorship.

    They scrapped the most oppressive business tax in the US and Michigan is open for business, attracting growth from domestic and foreign corporations. Illinois, on the other hand, has become an absolute basket case.

    In Michigan, there enough vote to keep Wayne County (Detroit) under control. Cook County (Chicago) has long controlled Illinois and continues to do so.

  2. 2018 May 14 5:00 pm
    [2]

    http://www.foxnews.com/politics/2018/05/14/nunes-gowdy-accuse-doj-launching-anonymous-attacks-on-congressional-investigator.html

    War continues as congressmen diddle, no surprise on that front from Gowdy, lots of whining but no action. Get on with the contempt votes already for Wray, Rosenfuck and Sessions.

  3. 2018 May 14 5:14 pm
    [3]

    https://ntknetwork.com/report-2016-ballots-destroyed-in-debbie-wasserman-schultzs-district/

    Also:
    https://www.washingtontimes.com/news/2018/may/14/mexican-woman-stole-americans-id-vote-election

    ^^Remember left\msm said not a single case of this has ever happened, this like example #300, just for 2016, though this particular case had the illegal voting in 2016,2012, and 2004 [ at least the years they can prove].

  4. 2018 May 14 7:12 pm
    [4]
    gnqanq permalink

    Illinois is a prime example of people (bc3b) and others voting with their feet. Problem is that we are running out of places to run to. Line in the sand is coming whether you like it or not.

  5. 2018 May 14 7:28 pm
    [5]
    drdog09 permalink

    Read this proposal and chuckled. All sorts of legal issues with this idea. The first is jurisdictional. It would not be possible to have a Springfield resident paying for a Chicago NEA pension. The legal battle would last for decades. On the other hand California could pull that off due to Calpers arrangement in that state.

    Art 9, Sec 4, (c) — “Any depreciation in the value of real estate occasioned by a public easement may be deducted in assessing such property.” — Illy constitution

    So when they add the assessment won’t the value of the property drop equivalent to the assessment? Just asking.

  6. 2018 May 14 9:06 pm
    [6]
    JimNorCal permalink

    We MUST be getting close to the endgame now. The “contradictions are tightening” as Marxists say.
    Thank goodness my old buddy has sold his IL downstate house and moved to Muskegon, MI.

    We here in CA thought our “solar panels on every new house” policy would stun the crowd but now ChiTown has left us way behind….

  7. 2018 May 14 9:09 pm
    [7]
    bc3b permalink

    That’s basically what Limbaugh said – the higher taxes are going to make Illinois property worth less.

  8. 2018 May 14 9:16 pm
    [8]
    bc3b permalink

    As of 2015, more than 12,000 Illinois retirees had pensions in excess of $100,000.

    https://www.illinoispolicy.org/the-top-illinois-pensioners-of-2015/

  9. 2018 May 15 2:02 am
    [9]

    I saw the most hilarious thing tonight, while channel flipping after midnight I caught the last segment or two of Tucker.

    Clip starts about 25min in.
    https://youtu.be/g2pSjYyaQWU?t=1407

    This women is the one that started this sanctuary bullshit in SF many many moons ago back in 1991. Over the years others took what she started and added steroids, in particular in 2016 when they added felons to be covered. Long story short she’s running for mayor after trying to signature to change the law back toward her original one.

    What was hilarious though was the reaction she’s getting – all her lefty friends attacking her, calling her a Nazi, a bigot, racist, a Trumper, etc all cause she’s not in favor of letting felonies slide or otherwise dangerous individuals off the hook.

    It was funny\ironic, though not at all surprising that she’s being met with some of the same lunacy she’s I’m sure done to others over the years. Even more so that she doesn’t seem to see how what she started back in 1991 has lead exactly to where things are today. But I guess a few props are due her for at least having some sense of contact with reality (and maybe the voters) about that and the total disaster that SF has become due to it and other overboard moves since her reign back then. I don’t know that I’d say I’m “rooting for her” like Tucker said, but it would pretty funny if she wins or her companion petition succeeds.

    —way ot:
    In finding the clip I had to watch a YT-Red ad…. did you guys know Karate Kid is back? Some new series called “Cobra Kai”. Original stars Ralph Macchio and johnny (William Zabka)… 34 years later, actually looks somewhat funny, trailer cracked me up, at least they found an amusing way to reboot it with original cast members in a series form, has to be better than another lame movie attempt\reboot.

  10. 2018 May 15 5:32 am
    [10]
    drdog09 permalink

    I predict a massive rush to home rule districting in Illy. Looking at the Illy constitution there is a tax cap based on population in such districts.

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