CTA Red Line Extension Boondoggle

By on February 11, 2021   /   Illinois, Latest  

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Today Val Zimnicki, Taxpayers United of America’s Director of Outreach gave testimony in front of the CTA Board in regards to expanding the CTA Redline.

 “The Chicago Transit Authority (CTA) is proposing to extend the Red Line from the existing terminal at 95th/Dan Ryan to 130th Street,” stated Mr. Zimnicki. “This boondoggle is a part of the Red Ahead Program and is estimated to cost $2.3 billion which is the largest amount ever by the CTA to be spent for a particular project. As a quick side-note, have these projects ever come in on time let alone without waste and overspending? This proposed 5.6-mile extension would include four new stations near 103rd Street, 111th Street, Michigan Avenue, and 130th Street, and each new station would include bus and parking facilities. But where is the money coming from? The CTA’s 2021 budget already has a $375 million deficit.” 

“The CTA claims it can pay for half the project and hope the rest of the money will come from the federal government. Actually, Chicago citizens should prepare for new tax line items on their real estate taxes to pay for this. That has been the unfortunate normal procedure that citizens of Chicago and Illinois have endured for virtually every over-budget, behind schedule and unnecessary program devised by legislators and bureaucrats. Their theme seems to be, If we build it, maybe they won’t come, but for sure we will tax them to pay for it.”

“The Red Line extension is unnecessary and expensive. How many people will use it? Projections are always optimistic and always seem to fall short. At a staggering $410 million a mile, will it pay for itself? Indeed, in the last 5 years general transit ridership fell by 2.8 million trips while ride-hailing grew by almost 30 million. Chicago is losing population as its citizens are moving to Indiana, Wisconsin, Florida, Texas and other states where the tax burdens are lower. Indeed, in the last 5 years, general transit ridership fell by 2.8 million trips while ride-hailing grew by almost 30 million.”

“The CTA will also need to purchase private property to make room for the Red Ahead Program. Families will be dislocated and some will not want to sell. Will the CTA enforce condemnation procedures? Will “just compensation” be enforced on individual property owners. Will renters be properly relocated?”

“The CTA wants to extend services to a dwindling population while not all the funding is as yet identified.”

“Will eminent domain take away property rights? What about the inevitable cost overruns and new taxes to pay for them? For these reasons, we oppose the Red Line extension.”

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CHICAGO FED PROPOSAL TO HELP ILLINOIS: NEW STATEWIDE PROPERTY TAX!

By on May 16, 2018   /   Illinois, Latest, News Releases, Pension Reform, Press  

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CHICAGO—The president of Taxpayers United of America (TUA) today condemned the recommendation released May 13 under the letterhead of the Federal Reserve Bank of Chicago to introduce a statewide 1% property tax to bail out the floundering government-employee pension plans in the state.
“This recommendation is not only astounding, it’s irresponsible,” said Jim Tobin, TUA president, economist and former Federal Reserve auditor.
“Illinois taxpayers already are heavily subsidizing the lavish, gold-plated pension plans of retired government employees. The $5 billion generated by the latest state income tax increase is being poured into the black hole of the state pension funds, and still the funds are essentially insolvent.”
“It’s impossible for the state to tax its way out of this mess, but tax thieves still propose new and higher taxes for Illinois taxpayers. More taxpayers have fled Illinois than any other state, but this doesn’t seem to register with tax-and-spend politicians.”
“The reasons given for this recommendation are pathetic. Because homeowners purportedly have benefited most from government ‘services,’ say the three authors of this proposal, they should pay a larger share of the costs of bailing out the state pension plans. In other words, they say the most successful people in the private sector should pay more to support these extravagant pension plans.”
“Illinois is bankrupt in fact, if not in name, and the only way to keep the state from going under is to place a state constitutional amendment on the statewide ballot to allow reductions in these pension benefits. All new government hires should be put into their own 401(k) accounts, and current retirees must greatly increase their contributions to their pension plans.”
“A statewide 1% property tax would devastate the already-feeble Illinois economy, and accelerate the departure of the middle class from Illinois.”

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Democrat Hack Zalewski Prevents TUA Spokesman Zimnicki From Testifying At Committee Hearing

By on May 4, 2018   /   Illinois, Latest, News Releases, Pension Reform, Taxpayer Alert  

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CHICAGO—The Chairman of the Illinois Revenue & Finance Committee, Democrat hack and Madigan puppet, Michael J. Zalewski (D-23, Riverside), refused to allow TUA Director of Outreach, Val Zimnicki, to testify against the proposed state Income Tax Increase Amendment at a Chicago hearing on Wednesday, May 2. This bill, HR 1025, filed by Ill. House Speaker and Chicago machine boss Michael J. Madigan (D-22, Chicago) calls for a graduated state income tax increase for Illinois.
Zimnicki was registered to be among those giving oral testimony in opposition to this state tax increase.
Over 2150 witness slips had been filed to present oral testimony, written testimony, or have record of appearance in opposition to this huge state tax increase.
Zalewski allowed only supporters of the bill to testify before the committee. No speakers opposed to the income tax increase were able to testify, and Zimnicki initially was informed that he was not on the list to testify. After further questioning, it was revealed that he was indeed on the list, but was not given a date and time. It was stated that if TUA was to be heard, it would likely be in Springfield, IL, a 200-mile trip from the May 2 meeting in Chicago.
Zalewski also is a chief co-sponsor of HR 1025. This abuse of power occurred with the support of notorious Taxpayer Traitor David Harris (R-53, Mt. Prospect), who was the Republican Spokesperson for the Committee and who voted to raise the Illinois State Income Tax by $5 Billion dollars.
Despite this silencing of Taxpayers, TUA will continue to spread its message of opposition to higher taxes to fund lavish, gold plated pensions for retired government employees. The Director of Outreach’s written statement can be found below.
“Honorable Chair, and members of the Revenue and Finance Committee, I am Val Zimnicki, Director of Outreach for Taxpayers United of America.
As I look down the road toward retirement, I am struck by how unfair the current Illinois pension system is to the middle class.
As someone who works in the private sector, the most retirement income I can look forward to is about $17,000, from Social Security—if I am lucky to get that much.
In contrast, retired government employees receive lavish, gold-plated retirement benefits, and, as an Illinois taxpayer, I am forced to pay for these benefits through the state income tax.
The current, unsustainable state pension system has created many pension millionaires among retired government employees.
Former Illinois Governor Jim Edgar (R), no friend of taxpayers, is rolling in money, thanks to these Illinois government-employee pension plans. Mr. Edgar gets an Illinois General Assembly pension of $166,000 per year, a State University Retirement System pension of $83,000 per year, and is currently hired-back “part-time” by the University of Illinois for another $62,796 per year—pulling in more than $312,000 per year.
Former Governor Edgar is a pension millionaire. Former Governor Quinn (D) is a pension millionaire. Former Governor Thompson (R) is a pension millionaire. These three so-called ‘public servants’ are going to receive a total of $11,388,000 in pension payouts over their expected lifetimes.
I am paying for their extravagant retirements, because most of the money from the recent state income tax increase is being poured into the insolvent state pension funds that send monthly checks to them.
The State of Illinois is functionally bankrupt, and government-employee pensions are to blame.
Illinois taxpayers are voting with their feet. In 2017, the number of people moving from Illinois to states with lower taxes outstripped arrivals by 115,000. And it will get a lot uglier if the proposed state Income Tax Increase Amendment is passed.
If the state income tax, now a flat tax, is converted to a graduated state income tax, the exodus from Illinois by the middle class will become a stampede. The state will literally go under financially.
It is impossible for the state to tax itself out of its current downward spiral. There is not enough money to go around to pay for its current unfunded pension liabilities of more than $130,000 billion.
There is a solution, and it also involves a state constitutional amendment. The current Constitution must be amended to allow for reasonable decreases in pension benefits for retired government employees.
In addition, all new government hires must be placed in 401(k)-style pension plans, so there will be no increases in the current unfunded pension liabilities.
Thank you for your attention.”
 

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