That's the recommendation of three Federal Reserve Bank of Chicago economists grappling with the State of Illinois' $129.1 billion public employee pension unfunded liability.
The Illinois state constitution guarantees public employee pensions so there's no getting out of sending monthly checks to cops and firemen retired at age 50. The money has to come from somewhere and taxes are that place. These guys advocate raising the property taxes on a $250,000 home by $2500, on a million dollar shack, by $10,000.
There's actually a better way to handle the problem. Let Illinois, California, New Jersey, Connecticut and other states and municipalities whose past politicians have given away the money of people yet to be born simply go out of business, just disappear. Illinois doesn't really need to exist as an entity. After all, at one time it was just a part of Louisiana, a large tract of colonial France until purchased from Napoleon (as if he owned it) in 1803. There's no real reason Illinois couldn't become Corn Prairie just like New Amsterdam became New York.
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