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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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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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CHICAGO—Ill. Senate President, John Cullerton is putting Illinois at risk of going under by denying that the state’s pension systems are in crisis, according to the Executive Director of Taxpayers United of America (TUA).
“Illinois’ five government-employee pension plans have a deficit of at least $100 billion,” said Rae Ann McNeilly, of TUA. “Due to decades of reckless overspending on lavish, gold-plated pension benefits of retired government employees, the plans have passed the point-of-no return. It is mathematically impossible to tax your way out of this crisis. The 67% increase in the state personal income tax and the anti-business 9.5% corporate income tax rate passed two years ago, every dollar of which is being pumped into these pension funds, didn’t even make a dent in the state’s unfunded liability. Unbelievably, Ill. Senate President, John Cullerton has been quoted recently stating that the Illinois’ pension system is not yet in crisis.”
“The so-called ‘reform’ plans of Ill. House Speaker Michael Madigan (D) and Ill. Senate Pres. John Cullerton (D) do nothing more than provide political cover for these career politicians, falling critically short of the necessary reforms.”
“While they play Russian Roulette with Illinois’ finances, the number of government retirees making more than $100,000 in annual pension benefits has grown to more than 10,000 and the unfunded liability grows, conservatively, by $5 million each day that passes without real pension reform.”
“Immediate and sweeping pension reform can stop Illinois’ downward spiral but will take serious political courage. Will you step up to the plate, Pres. Cullerton and Speaker Madigan? Or will you turn your back on Illinois as you ride off into retirement, leaving the state in virtual ruin?”
“Reform must include ending defined benefit pensions for all new government hires in order to permanently eliminate new, unfunded government pension liabilities. New government hires should plan for their own retirements by being placed in Social Security and 401(k) plans, like those in the private sector.”
“Each current government employee must be required to contribute an additional 10% toward his or her pension, saving taxpayers $150 billion over the next 35 years.”
“Finally, requiring Illinois government employees and retirees to pay for one half of his or her healthcare premiums would save an estimated $230 billion over current projections.”
“If these reforms are not put in place soon, Illinois will become a larger version of Detroit.”
