TUA President Jim Tobin was featured in a story from ABC 7 Chicago about Illinois’ “temporary” tax increase. To see the video, click on the image below, or go to the ABC 7 website here.
SPRINGFIELD, Ill. (WLS) — Illinois lawmakers will apparently balance next year’s budget without the state’s temporary income tax increase.
The Illinois House is expected to vote Tuesday on the approximately $35 billion spending plan that could lead to layoffs and further delays in paying the state’s bills
When approved three years ago, taxpayer advocate Jim Tobin suspected there was nothing temporary about the 2011 Illinois income tax increase.
“They always say it will be a temporary tax but then they try to make it permanent,” Tobin said.
“We have some temporary tax increases that are designed to pay our bills . . . to get Illinois back on fiscal sound footing,” IL Gov. Pat Quinn said in January 2011.
To resolve a budget deficit that includes $8 billion in unpaid bills, the governor and General Assembly Democrats authorized increasing the state’s income tax rates for four years: the personal rate increased from three to five percent and the corporate rate went from 7.3 to 9.5 percent.
“This is to get us out of a very deep and unpleasant hole that we happen to find ourselves today,” Rep. Barbara Flynn Currie, (D) Hyde Park, said.
“All of the income tax surcharge, over $21 billion, has gone to the pensions, government employee pensions,” Tobin said.
The 2011 bill called for the tax rates to be rolled back in 2015 to 3.75 and 7.75, respectively. But Illinois still has a deficit and a $4 billion backlog. Governor Quinn wants the rates extended to avoid devastating cuts to public education spending.
“We cannot be slashing the education budget and hurting our teachers and our students,” Gov. Quinn said.
Despite the governor’s pleas, House Speaker Michael Madigan says he cannot find the votes to extend the rates and has warned state residents to brace themselves for cuts.
Meanwhile, Tobin said Madigan could revive the tax increase extension after the fall election.
“He will push/promote the income tax increase again after the November election if enough of his allies get elected,” Tobin said.
Republican candidate for governor Bruce Rauner is opposed to extending the income tax increase, so voters can expect the question to become an issue in the fall campaign.
The state will lose just under $2 billion beginning January 1 and during the second half of the next fiscal year.
Rauner has not said what his administration would cut to make up for the loss.
TUA’s annual study of the top Illinois pensioners was featured on CBS Chicago WBBM Newsradio. To listen to the story, click on the player below.
[audio:https://www.taxpayersunitedofamerica.org/wp-content/uploads/audio/pensions-tafoya2-apr30.mp3|titles=Jim Tobin on WBBM Newsradio]
CHICAGO (CBS) – A taxpayer group that monitors the state’s pension problems said there are more retired state workers than ever drawing pensions of more than $100,000 per year.
Taxpayers United of American said more than 11,000 people receive six-figure pensions from the state, and by 2020, that number will balloon to 25,000.
The anti-tax group’s annual report also said more than 78,000 state pensioners receive more than $50,000 a year.
TUA founder Jim Tobin said, at the rate things are going, Illinois will not be able to sustain payments in the long-run.
“These people are … contributing very small amounts into their million-dollar pension payouts, and expect us – the taxpayers – to work until we drop so they can retire in their 50s and live the Life of Riley on our dollars,” Tobin said. “It’s an obscene, immoral system.”
Tobin said the pension reforms approved by the Illinois General Assembly and the governor last year are not enough. He said state workers need to pay more into their pensions and their health care premiums.
The TUA report pointed out educator Larry K. Fleming, who retired at age 55, receives more than $258,000 a year in state pensions, and stands to collect more than $11 million in his projected lifetime.
“He paid a whopping $326,000, or 2.8 percent of his estimated lifetime payout,” Tobin said.
TUA’s pension project on Peoria, Illinois, is featured in this news story from WMBD CBS Channel 31 Peoria.
PEORIA – A group called Taxpayers United of America called out lawmakers at a news conference Tuesday for the state’s massive pension mess.
Leaders are suggesting a plan that would put more responsibility on government employees. The group held a press conference today – saying some government employees are making a lot in comparison to the billions in unfunded pension liability.
The group’s President, Jim Tobin said many county employees can retire at 55-years-old. He claims some are drawing millions from the pension fund in the decades after. Tobin said Peoria taxpayers pay four times more toward city government pensions than the employees to benefit from them.
He proposes rising the retirement age to 67, amongst other things.
“Increasing employee contributions by 10%, increasing healthcare contributions to 50% for employees and retirees, eliminating all COLA’s, and replacing the defined benefit system with a defined contribution system for all new hires.”
