Rockford & Winnebago County Taxpayers Crushed by Gov. Pension Debt

By on April 2, 2014   /   Illinois, Items of Interest, Latest, News Releases, Pension Reform, Taxpayer Alert  

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ROCKFORD—Taxpayers United of America (TUA) today released the results of a new pension study of the pensioners of Rockford Municipal government, Winnebago County government, Winnebago government teachers, and Rock Valley College.
“Illinois leaders, Gov. Patrick Quinn (D), Michael Madigan (D), and John Cullerton (D), continue to fail in their duty to taxpayers in Rockford and Winnebago County,” stated Jim Tobin, president of TUA. “Despite the so called pension reforms passed last year, Illinois’ government pension liabilities have grown to $187 billion.”
“St. Rep. Charles E. Jefferson (D-67Rockford), along with Quinn, Madigan, and Cullerton, have been named among Illinois’ Most Notorious Tax Villains for their support of increasing the state income tax on as many as 85% of Rockford taxpayers through a graduated income tax.”
“It has never been clearer that the job-killing policies of raising taxes to prop up the gold-plated government pensions, and the union votes that follow, are more important to these Tax Villains than the future of Illinois itself.”
“The proposed graduated state income tax is nothing more than a money grab for the government bureaucrats who would rather take every last penny of taxpayer income for their own enrichment.”
“What does $187 billion in unfunded pension liability look like to Rockford residents? Retired Rockford Park District employee, Ronald L. Butler, is enjoying a cool $84,042 annual pension that will accumulate to an amazing $3,167,850 in estimated lifetime payouts because he was able to retire at the ripe old age of 57. His personal contribution to that payout was only a little more than $88,000, or 2.5%.”
“Alan S. Brown retired at age 55 from Rockford SD 205. His estimated lifetime payout is a stunning $5,218,392 based on a cushy annual payment of $153,535.”
Here, you can view the top area pensions:

“These are shocking amounts for taxpayers to be on the hook. And while these represent the highest pensions, it does not diminish the fact that every Rockford household owes about $3,858 to fund the local pensions alone.”
“Illinois’ government employee pensions are in dire trouble with no end in sight. Government employees, like the vast majority of taxpayers should save for their own retirement. Taxpayers simply can’t afford to pay so many, so much, to do absolutely nothing and retirees can’t afford the inaction of Illinois lawmakers who are afraid to alienate the special-interest money that keeps them in office.”
“Without sweeping and immediate reform, Illinois’ pension system will collapse. We need to fire Quinn, Madigan, Cullerton, Jefferson, and every one of the Tax Villains who support a graduated income tax or any other tax increase intended to prop up the failed government pension system rather than muster the political courage to end unfunded pension liabilities forever.”
“Pension reform must include raising retirement age to 67, 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. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 10,000 retirees collecting more than $100,000 in annual pensions; in 2020, that will be over 25,000 six figure pensioners.”
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

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Springfield Tax Villains Push to Raise State Income Tax on 85% of Illinoisans

By on February 24, 2014   /   Illinois, Latest, News Releases, Pension Reform, Taxpayer Alert  

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CHICAGO—Taxpayers United of America (TUA) has released the list of Illinois state legislators who have supported one or more resolutions that seek to add an amendment to the Illinois Constitution to implement a graduated state income tax, announced Jim Tobin, TUA President.
“Led by machine bosses Gov. Patrick J. Quinn (D), House Speaker Michael J. Madigan (D), and Sen. Pres. John Cullerton (D), the tax villains on our list are making a push to raise income taxes on 85% of Illinois taxpayers,” said Tobin.
“This grab for taxpayer wealth has one purpose only: to prop up the bankrupt state government pension system that provides lavish, gold-plated pensions and benefits.”
“These tax villains are expecting 85% of taxpayers to take a huge pay cut so they and their government cronies can continue to rake in higher than average pay, earlier than average retirement, nearly iron-clad job security, multi-million dollar pensions, and deluxe taxpayer-funded health care.”
“How lavish are these pensions for retired government employees? One example is retired government high school teacher, Beverly Lopatka, who retired at the age of 56 and collects annual pension payments totaling $399,652. Over a normal lifetime, that will accumulate to a staggering estimated total pension payout of $11,524,643. The system is unsustainable and downright immoral.”
Tobin added that Illinois has over 10,000 retired government employees who receive annual pensions over $100,000.
“The graduated income tax Quinn, Cullerton and Madigan want will have its top tier as high as 11.5%. In other words, the most productive citizens and businesses that remain in the state will be punished, and those individuals and businesses that have had enough will leave Illinois for states with lower taxes. This will put Illinois into an economic death-spiral.”
“Illinois is second highest in the country in property taxes, second in unemployment, is projected by Moody’s to have the worst job growth in 2014, and, not surprisingly, has the highest number of productive residents moving out of the state.”
“The economic future of Illinois is at stake, and, as Illinois goes, so will the economic future of its citizens. The Democrat members of the state legislature, who have a majority in both houses, must be thrown from office if Illinois is to survive economically. If they remain in power, Illinois could become another Detroit, but on a much larger scale.”
“Below is the complete list of Tax Villains, all of whom are Democrats, that support the graduated income tax, and are ready to sell Illinois down the river. A downloadable copy of the list can be found here.”
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Illinois’ Proposed Pension ‘Reform’ is a Rotten Deal for Taxpayers

By on December 3, 2013   /   Illinois, Items of Interest, Latest, News Advisory, News Releases, Pension Reform, Taxpayer Alert  

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CHICAGO—The so-called “pension reform plan” being pushed through by Ill. Sen. Pres. John J. Cullerton (D), Ill. House Speaker Michael J. Madigan (D), Senate Minority Leader Christine Rodogno (R), and House Minority Leader Jim Durkin is being kept a secret from legislators and taxpayers, but smells like a rotten deal for taxpayers, according to the President of Taxpayers United of America (TUA).
“Cullerton, Madigan, Rodogno, and Durkin are trying to cram a bad bill down the throats of taxpayers by keeping it from review by legislators and taxpayers alike,” said Jim Tobin, TUA President. “Their secrecy and their new-found sense of urgency tell me that they have found a way to kowtow to the union bosses who keep them in power and pass the cost to the taxpayers before they know what hit them.”
“According to the limited details that have been released regarding the agreement between the Illinois power brokers, there is very little reform to the system that has been bankrupting the state and burdening taxpayers. This proposal shifts even more of the cost of these lavish, multi-million dollar pensions to the taxpayers and provides additional guarantees to perpetuate a system that has decimated Illinois’ budget.”
“It seems that reelection is more important to some Illinois legislators than providing real reform for lavish, gold-plated government pensions.”
“Immediate and real pension reform is long-overdue. Ending pensions for all new government hires will eventually eliminate unfunded government pensions,” said Tobin. “New government hires should plan for their own retirements by being placed in Social Security and 401(k)-style plans.”
“Furthermore, if each government employee were required to contribute an additional 10% toward his or her pension, taxpayers would save $150 billion over the next 35 years. Instead, the proposed plan shifts even more cost away from the employees to the taxpayers.”
“Finally, requiring Illinois government employees and retirees to pay for one half of their healthcare premiums would save even more – an estimated $230 billion over current projections.”
“This proposed deal stinks and is nothing more than political cover for the government bureaucrats who seek reelection.”

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