Politicians Pave Way for Municipal Income Tax

By on February 12, 2020   /   Illinois, Items of Interest, Latest  

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

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ILLINOIS’ ONLY HOPE MAY BE BANKRUPTCY

By on December 3, 2019   /   Illinois, jim tobin, Latest  

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A recent article by Mark Glennon of Wirepoints states that turning Illinois around is vital to the national economy. Illinois is a drag on the national economy, and the state’s GDP has lagged the nation’s significantly for ten years. According to Glennon, “A federal bailout is happening automatically, at least in a small sense, in the form of food stamps, housing assistance, Medicaid and similar programs. A fresh start for Illinois would reduce its federal tab for those costs and grow Illinois’ tax base for federal revenue.”

For a state to formally go bankrupt, the U. S. Congress would have to pass legislation enabling that. In Illinois’ case, Glennon thinks Congress would.

David Skeel, a law professor at the University of Pennsylvania who also serves on Puerto Rico’s oversight board wrote that the “constitutionality of bankruptcy-for-states is beyond serious dispute.”

Congress would only be offering states the option of using bankruptcy, just as it has already done for municipalities; nothing would be forced on states.

As for the left’s fear that the power of bankruptcy would reduce pension payments, the Bankruptcy Code would not be expanded “as is” to states. Changes would be made on which all sides could find common ground. For example, a bankrupt government can opt to keep or renegotiate whatever labor contracts it has.

As for bondholders, says Glennon, one should “shed no tears for existing bondholders. They took the risk that bankruptcy law could be changed to impact them.”

“It’s becoming clear that there is no long-term alternative,” said Jim Tobin, president of Taxpayers United of America (TUA). “As Glennon points out, “This isn’t about whether bankruptcy is a good option. It’s about whether it’s the only option.”

“Illinois is functionally bankrupt,” said Tobin, “and the cause is runaway government employee pensions with unfunded liabilities so huge that it is mathematically impossible for the state and its municipalities to tax their way out of this financial black hole.”

“Illinois is the nation’s extreme outlier when it comes to pension shortfalls. The state has a $241 billion shortfall in its five state-run pension funds. Illinois’ pension shortfalls equal 28 percent of the state’s GDP. Illinois’ death spiral gets worse and worse, and bankruptcy for the state looks more and more desirable.”

“While we’re waiting for this drastic measure, the state of Illinois can help its citizens by passing a law to enable all local governments to declare bankruptcy. It also should cut state taxes to stimulate its sluggish economy.”

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Pro-Income Tax Increase AARP Event Flops

By on November 6, 2019   /   IL, Illinois, Latest  

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Oak Park-The “Illinois Tax Solutions Forum” presented by AARP, which is staunchly supporting the graduated income tax increase amendment, was a complete flop.

“Very few people were there,” said Val Zimnicki, Taxpayers United of America (TUA) Director of Outreach. “Even with the Full-Page ad in the Chicago Sun Times, I counted only 33 people.”  

“I am glad the event flopped,” said Jim Tobin, TUA President. “Not only did AARP present the debate, they also actively participated in it and sided against taxpayers. The fact that tax thieves are starting to peddle propaganda so early indicates their desperation.”  

“Two years ago, Illinois passed a $5 billion dollar income tax increase that went exclusively to paying lavish government pensions. Now Springfield, led by Governor Pritzker is coming back for more. Illinoisans will have the opportunity on Tuesday November 3, 2020 to tell these greedy politicians that enough is enough.”

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