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Chicago – Taxation serves one purpose only: to grow government, according to Jim Tobin, noted economist and president of Taxpayers United of America (TUA).
“Government bureaucrats are always looking for ways to get more of your hard-earned money. God forbid you choose to smoke in Chicago. You now have to pay $7.17 in taxes for each pack, the highest rate in the country,” added Tobin.
“Bureaucrats love to tax vices; they are such an easy target. They sell outrageously high taxes on things like cigarettes as ‘the responsible thing to do’ – and people soak it up!”
“Government taxes for one reason only – to grow and sustain government. Government is not altruistic and does not have any interest in reducing the rate of smokers. They would lose too much revenue if everyone actually quit smoking.”
“When taxes like those on cigarettes are sold as a deterrent to high-risk behavior, it is simply a marketing strategy to easily pass a tax increase. The bureaucrats rely on the naiveté of their constituents.”
“The reality is that increasing taxes locally drives business to neighboring communities. In the case of cigarettes, you create a significant black-market opportunity. Cook County Sheriff, Tom Dart, attributed the lower than anticipated cigarette tax revenue to the growing black market cigarette operations throughout Chicago and Cook County.”
“The real issue is, why do we need to keep increasing tax revenue? The answer is simple. Pensions. The government pensions are the real budget drain. 75% to 80% of local taxes go to pay government employee salaries and benefits, and that doesn’t include the state pension funds. But it does include the municipal police and fire pensions in most cases.”
“The State of Illinois and many of the communities within are in dire financial straits because of the gold-plated pensions that have been promised to the government employees. It is mathematically impossible to tax your way out of the problem, however, the bureaucrats will try with all their might.”
“Government budgets across the state are hurting and they will seek to tax everything that moves, if they have Home Rule taxing powers, although cigarettes are so special they can be taxed even without Home Rule authority.”
Home Rule gives local government the authority to increase taxes or create new taxes, with very few limitations, without a referendum. There are approximately 150 Home Rule units in Illinois.
“I caution everyone to be diligent in monitoring the activities of the Home Rule unit governing bodies. As state money decreases, local governments will be looking to increase revenue through Home Rule taxes.”
“This is a great time to repeal Home Rule. As a matter of fact, TUA has been contacted by activists in 3 Home Rule communities to help them launch a campaign to repeal Home Rule.”
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Chicago – Government bureaucrats in Barrington, Lake Zurich, Lynwood, Crestwood, and Matteson have placed referenda on the November 4, 2014 ballot for voters to approve Home Rule status for these villages. According to Taxpayers United of America (TUA), Home Rule means higher taxes.
“I like to call it ‘Home Ruin’”, said Jim Tobin, president of TUA. “Why would anyone want to give up their right to vote on property tax increases?”
“Home Rule always means higher taxes because it removes the cap that limits the amount that bureaucrats can increase property taxes. It gives bureaucrats a blank check and how many government bureaucrats would you trust with a blank check bearing your signature?”
“Home Rule also gives local government authority to tax nearly any product or service they want. What they don’t tell you is that such taxation drives consumers to neighboring communities where the taxes on products and services is lower.”
“And if high taxation isn’t enough, Home Rule is used extensively to add regulations, fees, and licensing that create even more red tape for business and entrepreneurs.”
“We are helping taxpayers in each of these communities by revealing the truth about home rule and how damaging it is. We are working with local activists and organizations to educate voters on Home Rule.”
You can download ‘Vote No’ flyers:
View the pension grids for these communities:
“Government needs to live within its means and cut spending when revenue declines. 80% of Home Rule and other local taxes go to pay government employees and their benefits. By adding new taxes, government bureaucrats ensure their own high pay and lavish pensions.”
“Illinois currently has more than 11,054 annual state pensions over $100,000 and more than 78,526 government pensions over $50,000 a year. It is mathematically impossible to raise enough taxes to sustain the defunct state pension system and yet every unit of government continues to try.”
“Illinois has one of the highest foreclosure rates in the country and you have to wonder how many people could have stayed in their homes if the property taxes weren’t so high – the second highest property taxes in the country.”
“We are urging voters in these 5 communities to retain their right to vote on property tax increases by voting no on Home Rule on November 4, 2014.”
Please call our office at 312-427-5128 if you would like additional copies of the flyers or to help with distribution.
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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:
- Stephenson County Government Schools
- Highland Community College
- Freeport Municipal Government Employees
- Stephenson County Government Retirees
- Freeport Retired Police
- Freeport Retired Firefighters
“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).
