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Politicians Pave Way for Municipal Income Tax

Chicago –After promising their overpaid bureaucrats lavish pensions, local governments have come up with a novel new way to squeeze money from taxpayers. In an audacious move, local politicians are eyeing the liberal powers of Home Rule for the purpose of imposing a municipal income tax on Illinois taxpayers.

“Home Rule is Home Ruin, and the first step in creating a municipal income tax”, stated Jim Tobin, president of Taxpayers United of America. “Home Rule in Illinois strips the power of the taxpayers to vote on new or unlimited increases in taxes, and widens the scope on what can be taxed.”

“We are helping three communities fight Home Rule referenda in the March 17, 2020 primary election. Burr Ridge, Westchester and Lynwood must defeat the implementation of Home Rule to prevent unlimited and burdensome taxation. Implementation of Home Rule enables a community to begin the process of imposing local income taxes that are deducted right from your paycheck!”

“After November 3, we will see the reality of this assault on taxpayers. There are so many new taxes being imposed right now that government bureaucrats are waiting until after the general election to usher in this newest taxation nightmare, a Local Personal Income Tax.”

“Municipal bureaucrats always promise not to abuse Home Rule power, but once they have it, they always abuse it by imposing excessive taxes and fees to fund their pet projects despite the ever-present government pension obligations.”

“The Illinois Municipal Retirement Fund (IMRF) is heavily subsidized by local property taxes. It is also true that IMRF pensions must be paid before all other expenses. Local bureaucrats will do whatever it takes to cash their paychecks and their pensions, including imposing a new individual income tax. On top of all this, remember that IMRF pensioners are also eligible for social security.”

“We are helping local residents in Burr Ridge, Westchester, and Lynwood defeat Home Rule on March 17. Links to the Vote No flyers for each community in the fight can be found below. Please download and share with your friends and neighbors in these communities.”

Click below to view or download:

Burr Ridge Vote No Flyer

Westchester Vote No Flyer

Lynwood Vote No Flyer

“Home Rule does nothing for taxpayers. It forces us to relinquish one of our most important rights and that is the right to vote on tax increases or new taxes. Say goodbye to your ability to voice your opinion through voting on these, among other powers you hand to politicians:

1) Raise property taxes without referendum and removes the 1.9% cap on village property tax increases.

2) Is the first step in creating a local income tax.

3) Impose new taxes in the form of fees, licenses, and regulations.

4) Expedite seizures of private property.

5) Give city property to private interests without competitive bidding.

“I urge you to vote no on any and all Home Rule referenda. It’s never a good idea to give more power to government bureaucrats”, concluded Tobin

TUA SUPPORTS BANKRUPTCY FOR ILLINOIS AND LOCAL GOVERNMENTS

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CHICAGO—The head of Taxpayers United of America (TUA) today supported changing laws to allow the State of Illinois to declare bankruptcy, and also recommended that local governments be allowed to declare bankruptcy.  

“A recent article in Thecentersquare.com discussed the proposal of Richard Porter, attorney and Republican National Committeeman, that Illinois should have ‘A quick GM-style bankruptcy that would replace ‘Old Illinois’ with ‘New Illinois,’ with help from the federal government,” said Jim Tobin, TUA president. “We proposed the idea of an Illinois bankruptcy ten years ago. We still support the idea, but with important differences from that proposed by Porter.”  

See: https://www.thecentersquare.com/illinois/op-ed-is-bankruptcy-the-best-option-for-illinois/article_d0fccb94-4843-11ea-b300-4744b6c176f4.html

“Porter proposed a new State Constitution to buy the assets of ‘old Illinois,’ and federal help paying off the state’s accumulated pension debt, suggesting a cap of $80,000 annually per pensioner as a limit.”  

“I see no reason why taxpayers should be forced to help pay-off the state’s gigantic accumulated pension debt. The state should be allowed to declare bankruptcy…period. And a cap on pensions of $50,000 is more reasonable.”  

“In addition, the General Assembly should allow local governments to declare bankruptcy, with no taxpayer bailout allowed.”

OUTRAGEOUS GOVERNMENT-EMPLOYEE PENSIONS HARMING MCHENRY COUNTY TAXPAYERS!

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The Taxpayer Education Foundation (TEF) today released its study of the McHenry County area government-employee pensions, highlighting the top pensions in the Teachers Retirement System (TRS), the State Universities Retirement System (SURS) and the Illinois Municipal Retirement Fund (IMRF). Taxpayers United of America (TUA) issued the following statement based on the TEF pension study.

“It is no mystery what’s driving the economy-killing property tax increases in McHenry County,” said Jim Tobin, TUA president. “It’s the state’s lavish, gold-plated pension plans for retired government employees.”

“The perpetual tax increases that plague Illinois residents have nothing to do with children, roads, or services. They are about pensions for the privileged government class. This money may be ‘earmarked’ for buildings or whatever, but in reality it only frees up increased taxes for government pensions. It’s a shell game.”

“Those of us in the private sector must reduce our spending if our income decreases; we can’t just go to our employer and demand more money to fund irresponsible spending. That’s not true for the political class.”

“The IMRF pension fund, which gives lavish, gold-plated pension benefits to retired municipal employees, is subsidized by property taxes. If that isn’t bad enough, IMRF pensioners are also eligible to receive Social Security pensions.”

“The entire local and statewide pension system in Illinois is unsustainable. The other five statewide pension funds are partly funded by the state income tax. Democrat Governor Jay Robert ‘J. B.’ Pritzker and his tax-raising cronies want to stick it to middle class taxpayers by increasing the state income tax again. They placed, on the November 2020 ballot, another statewide income tax increase. What does a statewide income tax increase mean for you? It means stealing from you to subsidize government pension millionaires.”

“The federal graduated income tax was sold to taxpayers as ‘a tax cut for the middle class.’ How did that turn out?”

“The state government employee pension system is the single cause of Illinois’ critical financial situation and it is mathematically impossible to tax our way out of this situation.”

“When you look at what the individual government retirees are actually collecting in taxpayer-funded pensions, you can get a better idea of why this theft of taxpayer wealth is so outrageous. Keep in mind that the average taxpayer will collect only about $17,500 a year from Social Security.”

“Here are some egregious examples.”

“Kirk Reimer retired from Crystal Lake Park District at the age of 55. His current IMRF annual pension is $104,096. His estimated lifetime pension is $987,511 over a normal lifetime. He also is eligible for a Social Security pension.”

“Ronald Miller retired from Crystal Lake CCSD 47 at the age of 55. His current annual pension is $185,140. For a total contribution he made to his pension of only $284,287, he will accumulate $6,435,383 in taxpayer funded pension payments over a normal lifetime.”

“Teresa Lane retired from McHenry CHSD 156 at the age of 55. Her current annual pension is $158,038. For a total contribution she made to her pension of only $183,460, she will accumulate $5,777,191 in taxpayer funded pension payments over a normal lifetime.”

“Christine Harris retired from Crystal Lake CCSD 47 at the age of 54. Her current annual pension is $150,228. For a total contribution she made to her pension of only $210,249, she will accumulate $5,657,601 in taxpayer funded pension payments over a normal lifetime.”

“Douglas Evans retired from Seneca TWP HSD 160 at the age of 55. His current annual pension is $147,007. For a total contribution he made to his pension of only $209,384, he will accumulate $5,420,343 in taxpayer funded pension payments over a normal lifetime.”

Click Here to view top McHenry County government pensions.

“The Illinois government in Springfield has failed us. It’s in everyone’s best interest to solve the pension problem before the system completely collapses. It is no longer a matter of ‘if’ it will collapse, but when.”

“All new hires should be placed into 401(k) style retirement savings accounts. Member contributions to their retirement funds should be increased. Retirement age for full benefits should be increased to at least 65, preferably to 67, and contributions for health care also should be increased. Anything short of these reforms will do nothing to permanently solve the problem.”

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DISCLAIMER

Taxpayers United Of America: (TUA). is a nonpartisan, 501(c)(4) taxpayer advocacy group. Founded June 27, 1976 in Chicago, Illinois by activist and economist Jim Tobin, TUA works on behalf of taxpayers to reduce local, state, and federal taxes. In the past forty years, TUA has saved taxpayers more than $200 billion n taxes and has become one of the largest taxpayer organizations in America. Check All posts. s.

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Website: https://taxpayersunitedofamerica.org
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