* Actually, it’s not even a bill yet and it probably won’t ever be one because I don’t think anybody in the General Assembly is this politically suicidal, but one never knows I suppose…
Illinois homeowners, who already pay some of the nation’s highest property taxes, should pay about 40 percent more for the next decade to wipe out the state’s crippling pension debt, according to a trio of economists at the Federal Reserve Bank of Chicago.
The economists argue that paying off the state’s $129.1 billion in unfunded pension obligations cannot be done with revenue from new taxes such as a tax on marijuana sales or on financial transactions.
“In our view, Illinois’ best option is to impose a statewide residential property tax,” they wrote, in part because it would be fair: “Illinois residents who have benefited most from the past services of governmental employees are more likely to be homeowners, so it seems reasonable that they should pay a larger share of the costs.”
They are proposing a statewide tax of 1 percent of a home’s value. Under their plan, the tax bill on a $500,000 house would go from about $11,600 to $16,600, an increase of $5,000, paid each year for 10 years.
The economists—Thomas Haasl, Rick Mattoon and Thomas Walstrum—calculated that a property tax equal to 1 percent of a home’s value could plug the state’s pension gap in 10 years.
As some commenters have noted, this is a 30-year tax hike proposal, not ten.
* More bills…
* Campaign-finance reform bill stalls during big-money Illinois governor’s race
* Bill would help Swansea school damaged by mine subsidence
* Bush urges Wisconsin to reconsider Foxconn deal, asks Illinois agencies to protect against loss of water, flooding: SR 1600, which passed out of the Senate Environment Committee today, also asks Illinois agencies to take whatever actions possible to protect against the loss of water, potential flooding and other ecological impacts that might result from the Foxconn deal.
* Government union lobbying turns legislation against students: SB 2838 was meant to aid school districts – and students – by providing a means for schools to recruit substitute teachers. But government union lobbying transformed it into a pro-union, pro-strike bill that hinders educational opportunities for students during teacher strikes.
* Retired military leaders call for more child care, education funding