Laurence Msall said state law was used to create the police, fire, laborers and municipal employees pension funds, and the Illinois General Assembly dictates “who the members are, what their contribution levels must be and what benefits” those retired city employees receive.
That’s why Msall believes it’s time state lawmakers live up to their responsibility to consolidate, reform and fund local pension funds to relieve Chicago and municipalities from Peoria to Rockford from the “enormous pressure” they face to raise property taxes.
Gov. J.B. Pritzker “took an important step three years ago when he rolled up many of the smaller police and fire pension funds investment oversight into one state board. The next step would be to take over the local police and fire pension funds and municipal pension funds and have the locals manage the current obligation. And the unfunded liability should be absorbed by the state,” Msall told the Sun-Times. […]
Pressed to identify funding sources, Msall said: “Regardless of whether you’re a pensioner or a multimillionaire who has millions of dollars in investments, you pay no Illinois state income tax. The federal government taxes retirement income. Illinois is one of the few states that doesn’t tax any amount of retirement income.”
What about broadening the sales tax umbrella to include professional services or amending the Illinois Constitution to eliminate the pension protection clause?
“Certainly, those should be on the table,” Msall said.
60-30-1. Not one of those three numbers currently exists in any shape or form to impose a tax on retirement income. The mayors of this state have, in the past, generally opposed income tax increases. I doubt the unions will touch such a thing. So, who’s gonna get this done? The governor is on record opposing the whole idea, even in a graduated income tax format.
It’s all just magical thinking.