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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.”

Rock Island Gov. Pensions Drive Higher Property Taxes

Rock Island

This story was featured by the Dispatch–Argus, KWQC TV, and WQAD TV. Another story on this release was run 9/19/2019 by WQAD TV.

Rock Island, IL – Taxpayer Education Foundation (TEF) today released its updated study on Rock Island County, Rock Island City, Moline, and East Moline government pensions including the top 200 pensions in the Teachers Retirement System (TRS), Illinois Municipal Retirement Fund (IMRF), and the State University Retirement System (SURS). Taxpayers United of America (TUA) issued the following statement based on the TEF pension study:

“Taxpayers in Rock Island County have been hit with yet another property tax increase. This time additional revenue of 11.9% is needed to keep the IMRF pensions afloat,” said Jim Tobin, president of TUA.

“The IMRF pension fund, which gives lavish, gold-plated pension benefits to retired municipal employees, is funded by property taxes. $903 million in property taxes have been shoveled into this fund to keep it afloat.”

Rock Island County has an effective property tax rate of 2.56%, according to Attom Data Solutions. The national average is 1.17% and the Illinois average is 2.22%.

“Taxpayers in Rock Island County sure aren’t getting their money’s worth. Their effective property tax rate is more than double the national average and even higher than the Illinois state average. The reason it is so high is because goonish politicians spend lavishly on gold plated, retired government employee pensions. Rock Island County taxpayers are paying for government services provided years ago. Sadly, there isn’t enough money left to pay for the services taxpayers need today.”

“The entire local and statewide pension system in Illinois is unsustainable. The other five statewide pension funds are 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 income tax under the guise of a ‘more fair’ graduated income tax, so they can make it through the next election cycle. When the state goes under, they will be enjoying their retirements in Arizona or Florida.”

“Middle-class Rock Island taxpayers would be decimated by the Pritzker income-tax hike if it passes. There is nothing fair about his ‘fair tax’ that will, by design, siphon even more wealth out of the pockets of the middle-class. And his tax increases won’t stop there as we’ve seen with Pritzker’s gargantuan gasoline tax-hike.”

“When you look at what 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 egregious. Keep in mind that the average taxpayer will collect about $17,500 a year from Social Security and that most IMRF pensioners are also eligible for a Social Security pension.”

Calvin Lee retired from Moline USD40 and currently collects $222,655 a year in taxpayer-funded pension payments. He contributed $390,120 into the TRS to fund his own pension which will total about $7.3 million over a normal lifetime.

Marshall Douglas receives benefits from the IMRF. His current annual pension is $155,673 and will accumulate to $2.5 million over a normal lifetime. He deposited $159,794 into his own pension. Marshall is also eligible for a social security pension.

Black Hawk College retiree, Bettie Truitt, retired at the age of 52 and currently collects $133,568 in pension payments. Taxpayers largely fund her estimated lifetime payout of $7,161,282 as she contributed only $187,423.

“All Illinois government new hires should be placed in a 401(k) style retirement savings account, beginning immediately, and the retirement age should be increased to 65. These measures would at least slow the bleeding until comprehensive pension reform can be enacted.”

Click here to see the top 200 Rock Island, Moline and East Moline TRS pensions
Click here to see the top 200 Rock Island, Moline and East Moline municipal,  and Rock Island County IMRF pensions
Click here to see the top Black Hawk SURS pensions

GOV. PRITZKER ORCHESTRATES REGRESSIVE TAXES ON MIDDLE CLASS AND POOR

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The president of Illinois’ largest taxpayer organization today issued a statement condemning Gov. Jay Robert “J. B.” Pritzker for betraying Illinois’ middle class and poor by significantly raising gasoline and cigarette taxes.

“Illinois’ corpulent con-man Pritzker has pushed these cruel and destructive tax increases on the state’s middle class and poor,” said Jim Tobin, president of Taxpayers United of America (TUA). “While middle class taxpayers struggle to make ends meet, the bloated $45 billion ‘infrastructure’ spending package passed is a payoff to the state’s labor unions that feed the Democrat machine. Adding insult to injury, the legislators that passed these massive tax increase will get a pay raise of $1,600 annually.”

“Retired state employees are literally becoming pension millionaires on the backs of workers in the private sector who are funding these lavish, gold-plated pensions with their taxes. In the meantime, these private sector workers, many of whom are losing their retirement plans, must pay a lot more for gasoline and cigarettes.”

“The state’s residents who are poor are the most affected by the enormous, regressive tax increases on these items.”

“The doubling of the state’s 19-cent-per-gallon motor fuel tax to 38 cents, higher fees for license plates and driver’s licenses, a 15% tax on e-cigarettes. and the $1-per-pack cigarette tax hike on the current $1.98 state tax are outrageous.”

“It’s time Illinois voters woke up to how much they are being ripped-off by Pritzker and his fellow Springfield tax-raisers for the benefit of special interests.”

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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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Chicago, IL 60606 205 W. Randolph Street, Suite 1305
Phone: (312) 427-5128
Fax: (312) 427-5139
Website: https://taxpayersunitedofamerica.org
Email: info@taxpayersunited.org

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