Chicago Unions Call for Tax Hikes Instead of Pension Cuts

By Hal Dardick

A coalition of Chicago public sector unions resistant to a push by Mayor Rahm Emanuel for changes to the pension system released a report Monday that concluded that the city should focus on new or higher taxes instead of significant cuts to benefits.

The We Are One Chicago group contended that cutting pension benefits would send negative economic ripples through the city and suburbs where retired Chicago Public Schools and city workers live.

The impacts of pension benefit cuts would hit women and people of color in disproportionate numbers and in turn hurt the economies in the city’s African American communities, concluded the study, which was dubbed “The Great Chicago Pension Caper: Neighborhood Destabilization in an Age of Austerity.”

To prevent those negative consequences, the group proposed several ways to pump up to $2.4 billion more into city and CPS coffers each year. Among them: closing state corporate tax loopholes; replacing the state’s flat income tax with a graduated tax that would require people making more money to pay more; and expanding the sales tax to include services while lowering the overall rate. That sales-tax approach is similar to the so-called “Rahm” tax that Emanuel proposed during his 2011 campaign but that never went anywhere in the face of withering criticism.

Continue reading at the Chicago Tribune

Video from WGNtv

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  1. Danni Smith says:

    We are quite fortunate that intelligent people lead the teachers. There is no negative impact on raising taxes. No businesses have left Illinois. There is no mass exodus from Illinois. There is full employment thanks to bocare. I say if they raise taxes enough we will all be living like bo and moochie. What are they waiting for? Life could be so much better for everyone in Land of Leavin’ if they would just raise taxes.

    • concerned taxpayer says:

      I assume you are being sarcastic!

      • Danni Smith says:

        Just heard a report that 13,000 families earning over $600,000. per year left Illinois last year. That’s wonderful as you and I will be able to pay more in taxes to pickup the slack. Life is good. Illinois, Land of Leavin’.

        • CNN reports 3000+ Americans ditching their passports this year, that is 3X the average; they look in America’s mirror and they see taxes on income rising above 50%, eventually taxes on accumulated wealth, and finally, confiscation of wealth to benefit the masses. Obamunism, ain’t it grand!

          • Don’t forget the corporate tax before they get hit with the income tax. If you make more than $400k a year .You can pay 74.6% rate.Every $10 you make, you will get to put $2.54 in the bank.That doesn’t include state income tax or sales tax. Makes me want to go out and start a new business alright. Florida is looking real good.

        • concerned taxpayer says:

          Even the retirees are leaving Illinois for cheaper states. Vote for Bruce Rauner!

          • I know little of Mr. Rauner; I am sure he has some skeletons In his closet. However, he is the only candidate for governor who is not a lifelong politician, drinking from the public trough. Our state has been under the complete and veto-proof control of the Democratic Party for most of the last three decades. There is not one single issue that they could not control legislatively. The Republican Party has not resolved fiscal issues when they had a share of the spoils. Remember Jim Edgar, George Ryan, and Jim Thompson. Our oldest daughter resides in Florida; she is begging us to evacuate this “Titanic” before it is too late.

    • Kudos to you; I am going to steal your “Land of Leavin.’ You may steal my Obamunism.

  2. Interesting that Communism keeps on proposing policies and programs that rapes and robs the taxpayers in order to enrich themselves. With 50% over staffing and compensation levels in the Public Sector plus their millionaire Pension scam that has bankrupted the state, municipalities and nation with its existing exorbitant taxation levels, it is time for major operational restructuring and reform. That means it is time in the Public Sector for major headcount reductions, reforming the massive corruption and fraud and lowering of the taxes. In fact it is time to establish a flat tax below 3% eliminating all exemptions, credits and subsidies and all double and triple taxation of income. The elimination of the fraud and corruption in the Public Education Systems will reduce the Property taxes by over 35% immediately.

    • They have received their marching orders from “the One.” Why stop at raising the taxes on those evil 1%’s residing in their opulent abodes Downtown, the Gold Coast, and Lincoln Park at a paltry rate? Obamunism demands “from each according to his means to each according to his needs.” Take that you evil and dastardly Republicans!

  3. what we TEA folks need to shout is the so called affected areas and people of color are in dire straits because of the last 30+ years of Madigan ruled Democrat policies and union suggested remedies

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