Government Pensions Hold Freeport Property Owners Hostage

By on August 20, 2014   /   Illinois, Latest, Pension Reform, Taxpayer Alert  

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Freeport—Taxpayers United of America (TUA) today released the results of a new study of the pensioners of Freeport municipal, Stephenson County governments, Stephenson County government schools, Freeport retired police and fire, and Highland Community College.
“Illinois leaders, Gov. Patrick Quinn (D), Michael Madigan (D), and John Cullerton (D), are taking taxpayers in Stephenson County even further down the rabbit hole,” stated Rae Ann McNeilly, executive director of TUA.
“While legislators continue to politicize the pension crisis, Illinois’ government pension liabilities have grown to more than $187 billion.”
“And that doesn’t include the liability for the area’s police and fire pension funds. According to the most recent report, the Freeport Police pension fund is only 49.6% funded and the Firefighters’ pension fund is only 76% funded. These are both overstated since they use a 7% discount rate to determine the future value of the assets. It is also alarming that the number of retirees exceeds the numbers of working members of each of these funds.”
“Stephenson County’s police and firefighters, as well as those from all over the state, should be the biggest proponents of pension reform. Without sweeping reforms that are implemented immediately, these civil workers are looking at a bleak retirement when taxpayers can afford to pay only pennies on the benefit promises that have mounted. We have passed the point where you can tax your way out of the problem; it is mathematically impossible.”
“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 government bureaucrats than the future of Illinois itself.”
“Between the state pension funds and the local police and firefighter pension funds, taxpayers are being taxed to death which hardly seems fair under the current economic conditions.”
“Stephenson County has one of the highest Illinois unemployment rates at 7.7%, and the median household income is $44,572. More than 75% of the backbreaking property taxes go to pay salaries and benefits of government employees.”
“It is unconscionable that we pay so much more to so many government retirees than an entire household brings in. It is time to bring government pay and benefits in line with what taxpayers who fund them can afford.”
“What does $187 billion in unfunded pension liability look like to Stephenson County residents? Retired Freeport teacher, William W. Heitman, is enjoying a cool $130,006 annual pension that will accumulate to an amazing $4,201,296 in estimated lifetime payouts because he was able to retire at the ripe old age of 56. His personal contribution to that payout was only a little more than $118,000, or 2.8%.”
“Sidney Fryer retired from Highland Community College with an estimated lifetime payout of $3,389,643 based on a cushy annual payment of $103,564. Sidney Fryer was only 55 at retirement!”
View the Freeport Government Employee Pension Grids:

“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 Freeport taxpayer pays about four times more toward the city government pensions than the very government employees who will collect. That’s just pensions – not payroll or other benefits.”
“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.”
“TUA supports complete government pension reform that would place all new hires into retirement savings accounts like 401(k)s, increasing existing employees’ contributions to their own pension, raising the retirement age to 67 for full benefits, and increasing retiree and employee contribution to their own healthcare to 50% of the premium.”
“If it takes a Constitutional Amendment to implement these changes, then let’s get it on the ballot at the next opportunity. It’s time the union bosses and government bureaucrats who keep them in power, provide truthful options and education to the rank and file, of the crisis state of Illinois’ pension systems.”
“If they knew the truth, they would be the first in line to vote for the changes.”
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

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Dick Durbin Wants to Make a Victim Out of YOU!

By on August 18, 2014   /   Illinois, Latest, News Releases  

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Chicago – Sen. Richard J. “Dick” Durbin (D-IL), denies citizens protection of their life and their property by pushing gun controls that take the ‘self’ out of self-defense, according to the president of Taxpayers United of America (TUA).
“Can you imagine waiting for Chicago police to arrive to save you from an armed assault? Custer stood a better chance of surviving,” stated Jim Tobin, president and founder of TUA.
“As an Illinois native, I have heard a lot of ridiculous gun control propaganda, but Dick Durbin’s assertion that even more gun control in Chicago might prevent the gun violence in the city is not only foolhardy, it is illegal. How many court rulings does he need to remind him of the Constitution he has taken multiple oaths to uphold, and spent at least 3 years studying in law school?”
“If we are not free to protect ourselves and are required to rely on police, you get….Chicago.”
At last year’s Senate Judiciary Committee hearing on guns, Durbin compared Fordham University law professor Nicholas Johnson’s stance on the Second Amendment to a “suicide pact.” “When I listened to you and Mr. Hardy describe the Second Amendment, it’s a suicide pact. Because by your definition, what has become common in America is unacceptable in a civilized country,” stated Durbin.
“By that logic, the early settlers would have been limited to bows and arrows to defend themselves. Waiting for the cavalry to arrive would have been much like waiting for CPD”, added Tobin.
“Self-defense is an inalienable right. Not only is the second amendment not a suicide pact, forcing people to rely on government for protection is a death warrant.”
“All of Durbin’s gun control rants are nothing more than political exploitation of the unfortunate victims of gun violence and designed to stir up his base after the deaths of innocents. He doesn’t even list gun violence as one of ‘…today’s most important issues’ on his campaign website.”
“Regardless of where you are on the gun control debate, it’s difficult to argue the meaning of, ‘shall not be infringed’.”
“I guess the real question is, how can Sen. Durbin propose to violate the Constitution rather than tackle the difficult issues that are the causes of gun violence?”

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25th Anniversary of Rostenkowski Rout!

By on August 5, 2014   /   Illinois, Latest  

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Chicago – August 17, 2014 is the 25th anniversary of an event that energized an anti-tax movement in Illinois and across the United States.
An angry crowd of 250 senior citizens protesting the Medicare Catastrophic Coverage Act of 1988, signed by Pres. Ronald Reagan on July 01, 1988, chased down Congressman Dan Rostenkowski (D-IL), chairman of the House Ways and Means Committee, forcing him to take refuge in his limousine after he refused to meet with them.

The video of the protest displays a level of grassroots outrage that has not been seen since.
The senior citizens were demanding the repeal of this act, which according to the Medicare Newsgroup, capped out-of-pocket expenses, expanded skilled nursing facility and hospital benefits, and offered outpatient prescription drug coverage.

Beneficiaries were forced for the first time to foot the entire bill. A supplemental premium, basically an income tax on 40 percent of the elderly (up to $800 per year for an individual and up to $1,600 per year for a couple), was put in place.
The seniors stood in front of Rostenkowski’s limousine, preventing it from moving. Rostenkowski ran from the limousine, and later when the coast was clear, reentered it and fled.
Most seniors opposed this new tax on all senior citizens, and the seniors chasing down tax-raiser Rostenkowski were members of the Chicago-based Taxpayers United of America (TUA).
The tax on seniors was repealed December 13, 1989 as a result of the protests.
“This is the first time a major federal entitlement had ever been repealed,” said Jim Tobin, founder and president of TUA. “This bill increased taxes on all senior citizens, for the benefit of the few needing catastrophic care. It was this incident with Rostenkowski that singlehandedly brought national press coverage to the tax revolt against Reagan’s tax on seniors.”
In 1996, Rostenkowski was sentenced to 17 months in prison for corruption. According to the indictment, Rostenkowski bilked taxpayers out of more than $500,000. He died of cancer in 2010 at the age of 82.

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