Illinois does not have a pension problem. Illinois has a tax problem.
Those two sentences have long been the mantra for the state’s public employee unions.
Now, the idea of taxing Illinois out of its worst-in-the-nation pension problem is getting increased attention from lawmakers.
The state’s special pension committee spent hours Wednesday listening to a flood of numbers from Ralph Martire (photo right) and his union-funded Center for Tax and Budget Accountability.
“It’s very difficult to find a way to solve the state’s pension funding problem,” Martire explained to lawmakers. “Given that (Illinois has) this structural imbalance between revenue growth, cost growth and its obligation to fund its other debt.”
Martire is saying Illinois has failed to generate enough money to pay the $8 billion per year pension payment and still pay to operate state government. Marite’s solution? Expand Illinois’ sales taxes and adopt a progressive income tax. Martire calls both “revenue reforms that are necessary to get the state’s fiscal house in order.” ...More HERE
