Dixon & Sterling Government Bureaucrats Still Stealing From Taxpayers

View as PDF Dixon, IL – Lee and Whiteside County area government pensions are decimating area taxpayers according to a study by the state’s largest taxpayer group, Taxpayers United of America (TUA). The study reveals the individual pensions paid to the retirees of Sterling, Dixon, Lee County, Whiteside County government employees.
“Our study shows that Lee and Whiteside County taxpayers are still being robbed blind by government bureaucrats in the form of lavish, gold-plated pensions,” stated TUA’s executive director, Rae Ann McNeilly.
“Dixon taxpayers should have taken back some of the money stolen from them by former comptroller, Rita Crundwell, when they had the chance.”
“Instead, Dixon politicians took the money from one thief and spread it around many thieves by dumping recovered millions into the immoral pension cabal.”
“This is the epitome of throwing good money after bad. This one-time infusion of cash will only slightly delay the inevitable hard-fail of an unsustainable crony system designed to siphon money from taxpayers for the benefit a the few.”
“Dixon and Sterling are increasing the property tax levy by the maximum allowable amount without a referendum or hearing year after year. True to bureaucratic form, Sterling city administrator, Scott Shumer, blames other bureaucrats for making the increase necessary because ‘the cities have no say’ in setting pension benefits.”
“But as the state budget is cut and less money will be sent back to municipalities, bureaucrats like Shumer will continue to reach into taxpayers’ wallets to feed their lust for other peoples’ money rather than cut expenses to balance budgets.”
“For those of us in the private sector, we must reduce our spending if our income decreases; we can’t just go to our employer and demand more money to fund irresponsible spending.”
“Yes, the pension promises made constitute irresponsible spending! Where else can a person get guaranteed payouts of millions on such a small personal investment?”
“Consider the annual pension of $169,467 being paid to retired government teacher, Boyce J. Wolf from Rock Falls TWP HSD 301. His estimated lifetime payout is $5.7 million! Retiring at the ripe old age of 57, his personal investment in that gold-plated payout was a mere $174,215, or 3.1%.”
 
“Then there is Gerald L. Carslon, retired from the Dixon municipal government. He get’s $44,911 in annual pension payments but because he retired at only 55, those payments with compounded annual cost of living adjustments will accumulate to more than $2 million! His personal investment was only about 3.1% or $62,918.”
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“The average Social Security ‘pension’ is only about $15,000 a year and taxpayers pay about 15% of every penny they earn for that modest payout.”
“There are hundreds of area government pensions getting theses lavish, million dollar pensions. Statewide there are more than 11,000 government retirees getting more than $100,000 a year in pension payments.”
“This pension cabal is the single cause of Illinois’ critical financial situation and it is mathematically impossible to tax our way out of this situation.”
“This financial squeeze of paying for yesterday’s services with today’s tax dollars is only going to get worse if Governor Rauner successfully cuts spending in the coming years. Any relief of those spending cuts will never reach taxpayers if municipal governments continue to increase the property tax levies as is happening throughout Lee and Whiteside Counties.”
“The Illinois government has failed us; local governments have failed us. Government employees would rally behind pension reform if their union bosses and the pols they elect were honest with them about the future of their pensions. It is 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.”
“Immediately place all new hires into 401(k) style retirement savings accounts, increase member contributions to their retirement fund, increase retirement age for full benefits, and increase member contributions to 50% of health care premiums. Anything short of these reforms will do nothing to permanently solve the problem. If it takes a Constitutional Amendment, then what are we waiting for?”

Warning: Illinois’ Cigarette Tax Policy Hazardous to Your Health!

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Chicago – In its latest study that compares cigarette tax rates to cigarette smuggling rates, the Tax Foundation confirms our long-held position that the egregious cigarette tax hikes in Illinois, Cook County, and Chicago promote crime and present greater danger to residents, according to Taxpayers United of America (TUA).
“Illinois’ cigarette smuggling rate has increased by 102% from 2006 to 2013. We predicted such a rise, and I testified to these facts at the Cook County Board hearings on their most recent tax increase. We can safely predict that this crime rate will continue to increase since, despite our warning, Cook County proceeded with an additional $1.00 per pack tax increase in March of 2013. Worse yet, Chicago doubled down and increased their per pack tax by $0.50 in January of 2014 making cigarette purchases made in Chicago the highest tax rate in the country at $7.17* per pack,” stated Rae Ann McNeilly, executive director for TUA.
“It’s troubling that their lust for other peoples’ money, aka taxes, limits the ability of the tax-raising bureaucrats to look beyond the faulty logic that tax increases are a good thing when all of the years of data and analysis support our position that such tax increases are not only immoral, but detrimental to the community by expanding black markets and the additional crimes associated with illegal activity.”
“We can’t say it enough times; tax increases serve one purpose only and that is to grow government. 80% of local taxes go to fund salaries and benefits of government employees. Government bureaucrats are desperate to keep the defunct Illinois pension system afloat for as long as they can.”
“Cook County Sheriff, Tom Dart, attributed the shortfall in revenue projections from the prior cigarette tax increase to the black market sales and still the bureaucrats failed to heed the warnings.”
“These cigarette tax increases are especially insulting to taxpayers. The bureaucrats rely on the faulty belief that sin taxes, as they are called, influence behavior in a positive way inducing people to quit smoking. The reality, as supported by years of data, is that these tax policies create a whole new danger to the community while relatively few people actually quit; they simply find a black market source for their habit.”
“When you look at Illinois’ map, it is easy to so how close you are at any location within the state to lower tax and lower cost cigarettes across the bFF450-Charts_1orders of neighboring states. From anywhere in the state, you are never more than a couple of hours’ drive from much lower priced cigarettes. And for those who can’t or don’t drive, the entrepreneurial smuggler is at your service.”
“Until we finally reform Illinois’ pension system, we can expect to see bureaucrats across the state raise taxes wherever they can and cigarettes are an easy target.”
“The Illinois government has failed us; local governments have failed us. Government employees would rally behind pension reform if their union bosses and the pols they elect were honest with them about the future of their pensions. It is 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.”
“Immediately place all new hires into 401(k) style retirement savings accounts, increase member contributions to their retirement fund, increase retirement age for full benefits, and increase member contributions to 50% of health care premiums. Anything short of these reforms will do nothing to permanently solve the problem. If it takes a Constitutional Amendment, then what are we waiting for?”

*The associated Tax Foundation data does not include the $1.01 federal excise tax imposed on each pack of cigarettes.

Belleville News-Democrat | Rauner calls for pro-business reforms, minimum wage hike, union curbs

TUA’s Jared Labell was quoted by the Belleville News-Democrat on his reaction to Rauner’s speech.


— Gov. Bruce Rauner, in his first State of the State address, outlined a plan Wednesday that he said will keep Illinois competitive.
His proposals included curbing union powers, implementing pro-business reforms and cutting the size of government.
Rauner, a Republican elected in November, said the state’s top priority must be to “grow more jobs here.” He said worker’s compensation and unemployment insurance need to be reformed.
“We must avoid slipping further behind other states in the quality of ourBND children’s education, the capacity of our economy to grow, and our ability to care for our state’s most vulnerable,” Rauner told lawmakers. “It’s now or never for Illinois. It’s time to act.”
In what could be viewed as a peace offering to Democrats, he also called for increasing the minimum wage to $10 per hour. But Democrats literally laughed at the proposal when Rauner finished the sentence — calling for the increase to happen over seven years.
As expected, Rauner called for a variety of measures designed to rein in state employee unions, such as prohibiting them from giving campaign money to lawmakers.
Rauner also said “trial lawyers” shouldn’t be able to finance judicial campaigns, and called for moving to merit-based selection of judges.
Rauner said he hopes to provide more funding for education, and said one of his priorities will be improving education “from cradle to career.”
Among metro-east lawmakers, the speech got a much warmer reception from Republicans than from Democrats.
Rep. Jay Hoffman, a Swansea Democrat, said the speech was divisive.
“I’ve got to tell you, I was hoping there would be more of a bipartisan tenor, that we could work together on some issues that are affecting the state,” Hoffman said. “Some of the topics that were touched on by the governor today, quite frankly, I think will incite a lot of opposition from our side of the aisle. Directly attacking the right of individuals to organize, and of individuals to collectively bargain, is certainly a problem for our side of the aisle.”
Sen. Kyle McCarter, a Lebanon Republican, said some of Rauner’s proposals mirror legislation he’s been pushing for years.
“Obviously, I was encouraged,” McCarter said. “He’s talking about bills I’ve sponsored.”
Rauner is planning to make a swing through Southern Illinois on Thursday to tout the plans. The schedule includes a stop at a Troy truck center at 9:30 a.m.
Rep. Dwight Kay, R-Glen Carbon, said the speech was “probably the first real, true state-of-the-state address that I’ve heard in the five years that I’ve been here — on point, labeled the problems we have, and the solutions that we need to rely upon to fix it.”
Kay said he heard Rauner use the word “competitive” several times.
“No one — no one — can disagree that we are not a competitive state,” Kay said.
Sen. Bill Haine, an Alton Democrat, said: “I’m willing to take his proposals and try to find common ground. Some of them, I don’t think his staff has clearly thought out.”
Haine said Rauner’s proposal to let local governments create “right-to-work” zones, for example, would be difficult to implement because it would create a hodgepodge of employment rules across the state.
Rauner said the right-to-work zones “will give employees the freedom to choose whether or not they want to join a union. Local communities — local voters — deserve this option so that they can compete with other states and other nations for new businesses and new investment.”
Hoffman said it seemed contradictory for Rauner to promise support for schools “while at the same time, he’s attacking teachers” and other union members.
Hoffman also said it’s unfair to prohibit unions and lawyers from supporting political candidates.
“Not everybody is a multibillionaire,” Hoffman said in a reference to Rauner, who put millions into his gubernatorial campaign. “People have a right to contribute to the candidates of their choice.”
Haine added: “I don’t know how that’s going to be consistent with the Constitution.”
Many of Rauner’s proposals are likely to meet opposition from the Democrats who control both the House and Senate, as well as some Republicans who have strong relationships with labor unions.
Sen. Dave Luechtefeld, an Okawville Republican, said he hopes there’s room for Rauner and Democrats to reach agreement on issues.
“Parties tend to work together only when they have to, and I hope that we’re at that stage now,” Luechtefeld said. “Right now you have a situation where both parties can share some of the pain that we’re going to have to go through over a long period of time.”
Rep. Charlie Meier, R-Okawville, said the speech was “the first honest State of the State I’ve heard from an Illinois governor in over a decade. I agree with Gov. Rauner that we must make Illinois more competitive. We can’t afford to keep losing our population and jobs to our border states.”
Rauner said he wants to freeze property taxes for two years, give local government employees the right to decide whether to join a union and begin looking for ways to eliminate or consolidate some of Illinois’ more than 7,000 units of government.
Rauner also included some proposals legislators could be more willing to embrace, including spending more money on K-12 and early childhood education and investing in programs that keep non-violent offenders out of prison.
But major questions remain about how initiatives will be paid for, given the drop in revenue from the Jan. 1 rollback of Illinois’ temporary income tax increase and a backlog of bills in the billions of dollars. Some agencies and programs already are running out of money this year, and the state faces an approximately $6 billion drop in revenue in the fiscal year that begins July 1.
Rauner is scheduled to propose his budget plan on Feb. 18.
While he didn’t tip his hand completely during Wednesday’s address, he said his agenda includes income tax rates that are “low” and “competitive with other states. He also said he wants to “modernize” the sales tax by imposing a tax on some services.

  • REACTIONS TO RAUNER’S SPEECH:

Michael Carrigan, Illinois AFL-CIO president: “It’s apparent that Gov. Rauner plans to govern like the ultra-wealthy CEO that he is — by taking care of the few at the expense of the many. While he points to the salaries of those cooking the food in the cafeterias, guarding the prisoners and plowing the snow and ice from our roads as the culprits in our state financial woes, he is silent on the hundreds of tax breaks granted to large businesses and low corporate income tax in Illinois. Instead of seeking solutions that empower all the working families of Illinois to fuel the economy, his proposals will destabilize middle-class economic security by cutting compensation for injured workers, defunding unemployment insurance reserves, demonizing public employees and suppressing wages.”
Jared Labell, Taxpayers United of America:“My optimism over the implications of Gov. Rauner’s fiscal policy on taxpayers vanished with his glaring omission of how he would pay for the big spending increases in the education and prison systems… I guess we will have to wait for his budget speech to see if the governor’s proposal is really just a massive tax increase for average taxpayers, who would be hardest hit by such an indiscriminate tax hike.”
John Tillman, Illinois Policy Institute CEO:“We are encouraged that Gov. Rauner plans to back up his bold policy reforms with an aggressive legislative agenda. The Illinois Policy Institute has long supported giving parents more choice and control over where their kids go to school. We have long supported a right-to-work law, because it empowers workers. We believe new ideas and innovation should be encouraged, not caught in red tape and excessive regulations. And perhaps most important, government must live within its means the same way we all do at home, and be a good steward of taxpayer dollars.”
Dan Montgomery, Illinois Federation of Teachers president: “Our current state budget is unsustainable, but attacking the middle class with regressive, trickle-down policies that have failed miserably in other states is not the way to grow our economy. Austerity isn’t a path toward prosperity. As teachers and public employees, we’ve endured plenty of shared sacrifice in our classrooms and communities. It’s time for corporations and the very wealthy to pitch in — especially since an overwhelming majority of voters demanded that millionaires pay their fair share for education just a few months ago.”
Sen. Gary Forby, D-Benton: “Too much blaming and not enough solving. The people of Southern Illinois want solutions. I want to work with this governor, but I’m not interested in balancing the budget on the backs of working families. That’s not going to help people around here.”
Rep. Dwight Kay, R-Glen Carbon: “It was quite refreshing to have an honest assessment of our state’s fiscal situation. Much of the governor’s focus will be on making Illinois a destination for businesses to invest and bringing jobs back to our state and I fully support that. For far too long we have chased businesses and jobs out of Illinois, this will be a welcome change. There is still a great deal of work to be done, but I believe the governor has made an important step in the right direction.”
Senate President John Cullerton, D-Chicago: “Unfortunately, too much of the governor’s opportunity was squandered with campaign rhetoric that denigrates the reputation of the state… With each speech that Gov. Rauner delivers, I am reminded that the new governor has a lot to learn if he is to build on our successes in Medicaid reform, worker’s compensation, pension reform, cutting the bill backlog and meeting our obligations… The people of this state elected a divided government, but the governor will soon learn that it doesn’t mean that he needs to be divisive.
Sen. Kyle McCarter, R-Lebanon: “I love the word ‘empowerment’ because that means there’s going to be an effort to let people have more control over their lives, and state government is going to get out of the way. What that means to entrepreneurs like me is lowering the cost of doing business, which will free up capital for me to hire more people and help build the community where I live.”