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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Illinois’ Corporate Income Tax is 9.5% – Fourth Highest in US!

By on March 31, 2014   /   Commentary, Latest, News Releases  

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The Illinois state corporate income tax is continues to be understated by reporters and politicians, according to the president of one of the nation’s largest taxpayer groups, Taxpayers United of America (TUA).
“The total Illinois corporate state income tax rate of 9.5% includes a base rate of 7% and another 2.5% on top of that, which was added by constitutional amendment in 1980,” said Jim Tobin, President of TUA. “The additional tax was called a ‘personal property replacement tax,’ which purportedly replaced a 19th-century tax that was not even being collected.”
The Ill. Dept. of Revenue’s own website states: “For tax years beginning on or after January 1, 2011, corporations pay 7.0 % income tax and 2.5% replacement tax.”
“In 2011, the Democrat-controlled state legislature pushed through a huge, back-breaking 67% increase in the state personal income tax, as well as hiking the state corporate income tax. Every dollar from these gigantic tax increases is being used to prop-up the failed government employee pension system from which they and their special-interest supporters benefit.
According to the non-partisan Tax Foundation in Washington, D.C., “The Illinois corporate state income tax rate, recently raised from 7.3% to 9.5%, rose from being the 21st highest overall corporate tax rate in the country to 4th highest. Almost all nearby states have lower state corporate state income tax rates, putting Illinois in a very unfavorable position competitively.”
“Now Springfield Democrats are pushing for a graduated personal state income tax with a top tier of as much as 11%. This would have a catastrophic effect on the 61% of Illinois businesses that pay income tax under the personal income tax code as ‘pass-through’ businesses. Illinois, which is struggling to survive economically, undoubtedly would become an economic wasteland if the state’s most productive individuals and corporations are forced to flee to states with lower tax rates.”

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Taxpayers Win Big in Illinois Primary

By on March 20, 2014   /   Commentary, Latest, News Releases  

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140203_berwynflyer-1Chicago—Taxpayers voted ‘NO’ on property tax increases in Tuesday’s primary election, according to Jim Tobin, president of Taxpayers United of America (TUA).
“We soundly beat property tax increase referenda in Berwyn South SD 100, Kane County, Huntley Park District, and the Village of Bull Valley, bringing our total to 203 property tax increase victories since 1977. We also helped taxpayers defeat home rule in Rochester, IL, bringing our home rule victories to 201.”
“Taxpayers sent a clear message that they are fed up with the constant money grab by government bureaucrats. 80% of local taxes fund the huge salaries and benefits of the very bureaucrats who are trying to raise taxes. Taxpayers are tired of taking pay cuts to fund government-employee pay increases.”
“Our political action arm, Tax Accountability, had some significant victories as well. Jim Oberweis’ win in the US Senate primary will square him off against Dick Durbin in November. We are confident that Jim is the candidate to win that race. In his words, ‘I believe that if I win this Senate seat, it means that the Republicans will be taking control of the US Senate and that will change the direction of the country.’”
“With Bruce Rauner winning the Republican gubernatorial race, we can look forward to a solid challenger to Patrick Quinn.”
“This is a pivotal year for Illinois. It’s pretty clear that we need to change things in Springfield quickly. The status quo in Government bureaucrats have bled the state’s taxpayers nearly dry and it is time to set a course of growth and economic freedom. I am confident that we have two of the best candidates to make that happen.”
 

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