Tuesday, October 13, 2020

What Does Pension Reform Have in Common with the Fair Tax Proposal? Nothing Really.


 UNDERSTANDING THAT A PENSION REFORM AMENDMENT WON’T WORK TO DO ANYTHING.

 

 

In Sunday’s, October 10, issue of the Tribune Editorial pages and conspicuously placed under the section “YOUR VOICE,” Illinois Policy Institute president Matt Paprocki led off with another argument against the Fair Tax Proposal.

 

The Tribune turns to the IPI, which describes it as a non-partisan research organization, although on-line it is characterized as a libertarian group with strong ties to Bruce Rauner, bankrolling the Mark Janus anti-union case for the ex-governor all the way to the Supreme Court. Mr. Janus is now a senior fellow at the IPI.

 

So, here they are again on my Sunday edition batting clean-up in the Trib’s ongoing effort to stop the Fair Tax Amendment.

 

One deflection that both the IPI and the newspaper engage in over and over is this: “We can say ‘no’ to this newest tax scheme and rescue Illinois by implementing practical structural reforms that would actually fix the problems” (Paprocki). “Instead of taxing…,we could implement pension reform through a constitutional amendment…”

 

With the Tribune and IPI it’s pretty much always the same old falsehood: No matter how many attempts are made to correct the systemic fiscal shortages in Illinois, the culprit will always be the “pension problem” and the unacceptable cost of living rates for retired union members. Please note:

 

THE ELIMINATION OF PUBLIC PENSION BENEFITS HAS ALREADY BEEN ACCOMPLISHED BY THE ILLINOIS GENERAL ASSEMBLY THROUGH THE CREATION OF THREE CATEGORIES OF EMPLOYEES AND CURTAILMENT OF THEIR FUTURE EARNED BENEFITS.

 

Unlike the Tribune or the Illinois Policy Institute, on May 8, 2015, the members of both political parties in Springfield understood the unanimous decision of the Illinois Supreme Court very clearly. And well they should have:

 

“The concerns of the delegates who drafted article XIII, section 5, and the citizens who ratified it have proven to be well founded. Even with the protections of that provision, the General Assembly has repeatedly attempted to find ways to circumvent its clear and unambiguous prohibition against the diminishment or impairment of the benefits of membership in public retirement systems. Public Act 98-599 is merely the latest assault in this ongoing political battle against public pension rights (¶84, p25, Pension Reform Litigation, 2015 IL 118585).

 

The cost of living benefits provided to all Tier One public pension retirement systems in Illinois are thus safeguarded.  On the other hand, heavy-handed, changes will affect the earnings of hires after January of 2011.   Those hires are categorized as Tier Two.   

 

Tier Two annual annuity increases are NOT compounded.  They are simple increases of a maximum of 3% or ½ of the Consumer Price Index, whichever is less. Tier Two members are eligible for the annuity increase at age 67.

 

Tier Three (to be implemented) annuitants will be given an option to join Tier Two, and the annual increases are the same regardless.

 

Note: Inside each of these plans, revised descriptions of benefits become complicated, conditional, and decidedly less in every aspect. For all of us, retired or readers of the Chicago Tribune, let it be understood that for 9 years now, public sector union workers have been brought in under Tier Two.  

 

THE COST OF LIVING ISSUE IS DEAD TWICE.  ONCE IN THE ILLINOIS SUPREME COURT AND AGAIN IN THE GENERAL ASSEMBLY.

 

Paprocki’s and the Tribune’s longing to flog the public retirees in Illinois with a pension amendment proposal is just for entertainment, a libertarian blood sport.  It’s already been done.  

 


 

Monday, October 12, 2020

From "Breadcrumbs" and written by Ida Wye on Facebook


ARE WE THE MORIBUND IN A RUSSIAN NOVEL?  BREAK THE CHAINS!

Breadcrumbs

September 16 at 3:35 PM · 

Author : Ida Wye 

“I’ve been wondering why this entire
country seems to be under a cloud of
constant misery.
Why we all seem to be Russians waiting in line for toilet paper, meat, Lysol.
Hoarding yeast and sourdough starter
“in case we can’t get bread”, 

Buying stamps so that one of our most beloved institutions might survive.
Why we all look like we are in bad need
of a haircut, or a facial or a reason to dress up again and go somewhere.
Anywhere.

There is no art in this White House.
There is no literature or poetry in this
White House. No music.
No Kennedy Center award celebrations.
There are no pets in this White House.
No loyal man’s best friend. No Socks the family cat.
No kids science fairs.

No times when this president takes off his
blue suit-red tie uniform and becomes human, except when he puts on his white shirt- khaki pants uniform and hides from Americans to play golf.
There are no images of the first family
enjoying themselves together in a moment
of relaxation.

No Obamas on the beach in Hawaii
moments, or Bushes fishing in Kennebunkport, no Reagans on horseback, no Kennedys playing touch football on the Cape.
I was thinking the other day of the summer
when George H couldn’t catch a fish
and all the grandkids made signs and
counted the fish-less days.
And somehow, even if you didn’t even like GHB, you got caught up in the joy of a family that loved each other and had fun.

Where did that country go? Where did all
of the fun and joy and expressions of love and happiness go? We used to be a country that did the ice bucket challenge and raised millions for charity.
We used to have a president that calmed and soothed the nation instead dividing it.
And a First Lady that planted a garden
instead of ripping one out.

We are rudderless and joyless.
We have lost the cultural aspects of
society that make America great.
We have lost our mojo. Our fun, our happiness.
The cheering on of others.
The shared experiences of humanity that makes it all worth it.
The challenges AND the triumphs that we shared and celebrated.
The unique can-do spirit Americans
have always been known for.

We are lost.
We have lost so much
In so short a time.”

These last 4 years we have seen nothing but chaos, nasty tweets filled with lies , insults and hate . 


📌📌Vote Blue in November  #VoteBidenHarris  
Yes we can !  
👍




 

Saturday, October 10, 2020

TAXING RETIREMENT INCOME HAS NOTHING TO DO WITH ILLINOIS FAIR TAX PROPOSAL


WHAT WILL YOU PAY WHEN THE FAIR TAX PASSES?
 


 On Friday, October 9, 2020, Eric Zorn of the Chicago Tribune Editorial Board provided an ambiguous and misleading title to his opinion piece: “Taxing certain retirement income would be a benefit of a graduated-rate tax.” 

 Buried deeper in the piece, Eric Zorn reminds us : “…”but I have to admire the successful effort to get us all talking about an issue (taxing retirement income) that isn’t even remotely on the table.” This attach/attempt led by the ultra-conservative Illinois Policy Institute, which is currently leading a legal attempt to revise the state of Illinois’ mailed proposal for the referendum as being confusing for many Illinois citizens. In short, the arguments provided in the pamphlet do not provide enough emphases for the IPI in the “reasons against” section of the explanation. And, of course, one specious argument would include the thought that retirement income would be a part two of the passage of the referendum. 

 

Mr. Zorn recalls having debated the IPI’s Austin Berg about the merits of the referendum to pass a Fair Tax in Illinois. And he reminds his reader that thus far Pritzker has “emphatically refused to put retirement income taxes on the table.” 

 But then, things become muddy. Just the lack of clarity that social media loves to swim in. 

 At first, Eric Zorn in his closing paragraphs seems to endorse the greater need for a graduated tax system for Illinois: “And the devious effort to distract us with talk of retirement income takes our eyes off the real question: Which system of taxation will best protect those toward the bottom of the income scale as we close our massive budget gap?” That’s a seriously good question. 

 Then, in a confusing 180-degree turnabout, Zorn embraces the two positions – one actual and one “not remotely any part of the question” – as the best alternative. “And it distracts us from the right answer: A graduated tax system that includes retirement income.” 

 So much for clarity. 

 Maybe one step at a time? 


Remember: only those earning more than $250,00 will see an increase in their income tax. For 97% of taxpayers, taxes will remain the same or go down; only the top 3% will see their taxes go up. To
find out what your tax would be, go to the Fair Tax Calculator:
https://www2.illinois.gov/sites/gov/fairtax/Pages/default.aspx 

 Yogi Berra once said: “You gotta be careful if you don’t know where you’re going because you might not get there.” 

 Let’s concentrate on the Fair Tax.

Wednesday, October 7, 2020

 


LAST MINUTE THOUGHTS ON THE GRADUATED TAX IN ILLINOIS

 

 

 

When I fire up the laptop in the morning, I usually see any number of new messages on our local community chat-board.  “Looking for a good hairdresser.”  “Anyone know a cheap roofer?”  “What were all the sirens about last night?”  Now, though, it’s not unlikely to find a daily wave of misinformation about the progressive tax proposal coming this election for Illinois.  

 

“If you vote for (it), all our taxes will be raised immediately.”

 

“Your pensions will be either taken away or reduced!”

 

“You can’t trust our politicians, especially not to raise our taxes at will if we pass (it).”

 

As a public teacher pensioner, I can empathize with that last concern - IF I had not witnessed the crash and burn of Michael Madigan’s, Lisa Madigan’s, and Pat Quinn’s failed attempts to override the Pension Protection Clause of the Illinois Constitution in 2015.

 

Taxes will be raised immediately?

 

The General Assembly has always had the power and ability to raise and lower taxes as they felt necessary. The Progressive Tax Amendment is an attempt to stave off that likelihood given the loss of revenue during the current Covid crisis.  Think of it this way: NO Progressive Tax; more necessary increase in taxes.

 

Pensions taken away?

 

Well, if you’re in a private pension situation, the future fiscal solvency of your company or union will determine that, not the politicians. As for public pensions, the unanimous decision of the Illinois Supreme Court on May 15, 2015, clearly prevents that for all members of Tier One.  Lisa Madigan’s argument for police powers in an emergency was dismissed, and the jurists of the ILSC also reminded those who would attack the pension system that the state of Illinois had never (still does not) make the necessary actuarial payments to support the pension system.  

 

You can’t trust politicians…”

 

Of course, you can’t.  I know from personal experience.  But when Illinois, one of about eight states that still utilize a flat tax system, faces a systemic revenue shortage, they have in the past only one way to go: INCREASE PROPERTY TAXES.  Oh, did I mention that my local chat board is also decorated with a hundred people complaining they’re leaving because the property taxes are so high as compared to Indiana?  

 

Ken Griffin Citadel Investments

So why is Ken Griffin, who is spending over $50 million in advertising so keen to get us chatters to vote NO on the Amendment? Like many of those who are morbidly wealthy, Ken does not mind spending 1/20,000,000 of his billion to stop a fairer tax to help all of us.  Put it on all of them, says, Ken, not me.

 

Right now, Ken pays 4.95% like all of us.  ALL of us.  As of 2016, the poorest 20 percent of families in Illinois pay an average of almost 15% of their income on state and local taxes.  Meanwhile the wealthiest one percent pay just above 7 % (CBTA).  

 

97% of all of us will pay the same or less than we ay currently.  Only those making $250,000 or more – or those small businesses making profits of $250,000 or more – will pay more.  

 

It’s the first item on the ballot, so make sure you vote on it.  If you ignore it, it will count as a NO.  Remember, Ken Griffin is throwing one twenty-millionth of his money to stop you from voting YES:

 

            

 

 

 

                                   VOTE YES ON THE PROGRESSIVE TAX. 













Thursday, September 24, 2020

 

MY WEALTHY FRIEND DOES NOT UNDERSTAND A GRADUATED TAX.  DO YOU?

This UPCOMING voting season affects me most – psychologically,” my wealthy friend Ernesto uttered between sips of cognac the other evening.  

 “It has been a brutally rainless summer, Ernesto,” I offered hopefully, “but the end is coming with each day’s decreasing sunlight.”


 

“I am talking taxes, my friend,” Ernesto responded, glowering.  “I am imprisoned by your government’s exasperating 33% income tax.    And, I suppose, you are now part of that progressive rabble that wishes the same - a graduated income tax in Illinois?”

 

“Goodness, Ernesto.  Thirty-three percent indicates a significant income.  I am happy for your success.  May I ask what portion of your income is subject to this rate?”

 

“Why, all of it…just as you and your union bosses would wish in Illinois.”

 

“Actually, Ernesto, if Illinois were ever to move to a “Fair” tax system, one you would call progressive or graduated, the increases in taxation would occur as they do on the federal level – at thresholds or gradients.  In other words, Ernesto, if you achieve $3000 above the threshold for 33% taxation (which is $226,850), you pay 33% on that $3000, not your entire earnings.

 

“In fact, Ernesto, you pay your federal tax like everyone else for all of our services for each of the thresholds as you move through them, my friend.  That means you pay only 10% on your first $18,000, 15% on your next $56,000, 25% on your next $75,000, and so on.  You don’t fall into a category where you pay 33% for all of your earnings.  That’s why I use the term gradient tax system (or fair tax) rather than graduated when I talk about it. “ 

 

“You don’t know my pain…”


 “In truth, Ernesto, you pay the same percentage tax as me until you move well beyond me…and then you pay extra for only those amounts above our joint threshold.” 

 

“I see.  Don’t you have anything better than Hennessey?  Paul Ferrand or Skye?”

 

“Sorry, no.  And that is how a fair tax would work in Illinois, Ernesto.  We, both of us, would be taxed at higher levels for the amounts we earned above thresholds of income, not for all of it.”

 

“Ahhh, my friend.  But you’re still stealing from me for being successful, are you not?”

 

“Well, not actually, Ernesto.  In truth, you and I might actually be stealing from the greater population in Illinois who pay more dearly for their services – education, protection, healthcare, roads and transportation – than we ever will.  And, if we’re not stealing, we’re certainly getting a better deal for it all.”

 

“Ridiculous.”

 


“Not so, Ernesto.  The average earner in Illinois pulls in $47,485 annually.  At 33%, I know that you pull in much more, and I’d venture nearly ten times that amount.  Nevertheless and without denial, let’s review our numbers.  Suppose Mr. Average needs a new car for his family and purchases a solid sedan at $25,000.  I see by your scowl that such a concept is impossible.  Will you accept $40,000? “ 

 

“Only if I have to…”

 

The taxes on this family’s precious purchase will be several – New Vehicle Tax, Cook County Home Rule Tax, Cook County Sales Tax, possible Chicago Home Rule Tax…and others.  Those taxes, Ernesto will run to nearly $3,000 – or almost 7% of the earner’s annual salary. “ 

 

“And…?”

 

“For an income earner like you?  A mere .6% of your salary.   Ernesto, you would need to purchase at least ten of these vehicles to begin to feel that same impact on your income.  That is something, I might add, you would not and never need do.  But it does illustrate a significant difference in our relationship with tax requirements, doesn’t it?  We get away with a lot, my friend.

 

“Add to your and my advantages the costs of milk, gasoline, clothing.  Costs of living and taxes for these average workers, Ernesto, drain huge portions of their ability to live, and we are not talking disposable income.  

 

 “Indeed, what you and I pay for the protection of police and fire, for our schools, for transportation, health services, and other benefits is a steal, Ernesto.  Don’t we owe it to make it more even?”

 

Silence.

 


Note to self: Purchase Paul Ferrand for next get-together. AND VOTE FOR THE FAIR TAX AMENDMENT!

 

 

Saturday, August 31, 2019

Happy Labor Day! 2019

Happy Labor Day in Illinois 2019

My Latin American friend Ernesto swung his new hybrid Escalade into the driveway the other morning and once again shook his head disapprovingly at my sign in the front yard.

“What is this doing here in open display, my friend?  It makes you both look so…so...very low class.”

Ernesto was chastising my wife and me for keeping a red, white, and blue sign that displayed “Proud Union Home” in front of our house.  Ernesto does not live in an area where such signs would be tolerated, nor would anyone ever likely see one.  There are codes to follow in Ernesto’s gated compounds, and there are the unspoken taboos.

You might remember Ernesto from several posts ago, when he disciplined me on the wrongness of contracts and the rightness of possible Illinois governors:



This Monday, on Labor Day, Ernesto will celebrate with his family and friends, but it is very likely he will NOTcelebrate Labor Day.  Not in the traditional or even the authentic sense. Like the Chicago Tribune, which commemorated Labor Day a couple of years ago with praiseful editorials about the benefits of work for the soul and spirit, most of Ernesto’s people will avoid the real history.  Ignore the real significance.

And the Tribune will pay some lip service to the qualities of work and a day off for workers, and it wouldn’t be unlike the editorial board to make a passing neutral reference to the JANUS decision.  But Collective Bargaining?  Public pensions? Health Benefits? Equal Pay? Contracts as promises?  Workplace Safety? Costs of living? Not likely.  Not with any fondness.  

According to the United States Department of Labor, “the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers.  It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country” (http://www.dol.gov/laborday/history.htm).  

I think it’s always rewarding and refreshing for Ernesto to visit my “side” of town – not for Ernesto, but for myself.  I learn a lot more…

The origins of Labor Day are obscured by the variety of movements at state levels to recognize the good work of all of us, and eventually those sentiments coalesced into a federal observation of a holiday.  Even as early as 1885, various municipal ordinances were being written to celebrate workers’ contributions.  Oregon was actually the first state to pass a law of such recognition in 1887; however, by 1894 nearly two dozen other states had adopted similar laws recognizing a day to honor workers.  By 1909, the Sunday before the Labor Day Monday was reserved nationally as Labor Sunday, dedicated to the spiritual and educational aspects of the labor movement.  


Many argue about the actual individual responsible for the first Labor Day observance, but make no mistake about it: it was a union member or union official.  Some consider one Matthew McGuire the founder of the holiday across the river in New Jersey, while serving as secretary of the Central Labor Union in New York. Matthew was a machinist and member of Local 244 (International Assoc. of Machinists).

Others ascribe the incentive for the holiday to a Peter McGuire, general secretary of the Brotherhood of Carpenters and later co-founder of the American Federation of Labor. I favor Peter only because of his supposed words defending such a holiday to honor all those “who from rude nature have delved and carved all the grandeur we behold.”  

Ernesto couldn’t have said it better.  Actually, Ernesto would never have said it.  

The first proposals of the holiday outlined a basic form for the observance and celebration, and remnants of that festivity are still observed in many towns and villages. Parades were considered the first order of business, followed by drinking and barbecues.  Children danced their last moments of summer freedom, and neighbors gathered to share a respite from the hard work of building a nation, day-by-day and brick-by-brick.  Of course, it was also a jamboree tailor-made for lengthy speeches by politicians seeking labor’s backing.   

Still is.  Have a wonderful celebration of Labor Day. 

Tuesday, June 18, 2019

What is Juneteenth Day?

Wednesday, June 19th is the 154th Juneteenth Independence Day  

The date celebrates the June 19, 1865, announcement of the loss of the Civil War and the abolition of all slaves in the state of Texas.  This was two and a half years after Lincoln’s Emancipation Proclamation went into effect on January 1st

In Chicago, many events were held on the previous weekend, and a  number of concerts will be held in Hillside and the city.  Customary celebrations, like those held in Texas in the late 1800’s and early 1900’s provided an opportunity for simple freedoms like singing, dancing, and readings from worshipped artists.

Why June 19th?  It was on that date in 1865 that Union soldiers under the command of General Granger finally washed ashore in Galveston to inform the Texans of what had transpired.  By and large, Texas and its citizens were not impressed.  The limited size of the Union force and the increased numbers of slave-holders fleeing southern states to Texas as the war ravaged their plantations made for little response or acceptance of the news.

Other stories and conspiracy theories, most likely apocryphal, surfaced as reasons for the delay in the announcement for over two years after the President’s Proclamation.  The soldier sent to carry the news to Texas was murdered by those who wanted to prevent such information from reaching the fields.  Plantation owners kept the information from their work force to maintain order and production.  The Union soldiers were complicit in keeping the information from slaves to assure cotton crops were picked before freedom.

In fact, slaves worked and tilled the fields for over two years after they had been acknowledged free men and women in the Capitol.

Despite the Lone Star pushback, after Lee surrendered in April of 1865, it was only a matter of time before the tide of change would sweep across the nation.  Texas Supreme Court decisions in the next decade reaffirmed the status of freedom for those brave African Americans who had cautiously celebrated their liberty in June in the streets of Galveston upon first hearing the news.

Other racial justice organizations will mark the day remembering the horrific history of the slave trade and its everlasting impact on a people and two continents separated by over 5000 nautical miles. 

Over 2 million died while crossing the Middle Passage into America. 

At least as many others perished during the forced transportation across West Africa to the waiting ports.

Estimates of total captives brought to America for slavery run as high as 12 million.

Several hundred captives were chained together below decks in deplorable conditions, suffering cramped contagion and death on the journey.

Insurance brokers provided for coverage in cases of drowning, but not simply deaths.  As a result, some historians visualize the Atlantic sea bottom marking the exact paths of ships with the mountains of bones left from throwing strings of sick or unwanted slaves overboard. Deplorable.

It’s small wonder that Juneteenth will likewise mark the strong, resentful argument for reparations by racial justice organizers like the Black Land and Liberation Initiative.  They and others symbolically revisit the issue by highlighting General William Sherman’s original order in 1865 by recognizing a national day of action.  According to writer Aviana Willis, “In 40 acres across 40 cities black people will take nonviolent direct action to occupy and reclaim spaces such as abandoned schools and empty lots, with the goal of putting these spaces into service of the community.”

Black Land and Liberation Initiative states it clearly:  “We are people who have been enslaved and dispossessed as a result of the oppressive, exploitative, extractive system of colonialism and white supremacy.  In this system, our labor and its products have been taken from us for generations for the accumulation of wealth by others.”(http://blacklandandliberation.org/)

“We have been taught in school that the source of the policy of “40 acres and a mule” was Union General William T. Sherman’s Special Field Order No. 15, issued on Jan. 16, 1865. (That account is half-right: Sherman prescribed the 40 acres in that Order, but not the mule. The mule would come later.) But what many accounts leave out is
that this idea for massive land redistribution actually was the result of a discussion that Sherman and Secretary of War Edwin M. Stanton held four days before Sherman issued the Order, with 20 leaders of the black community in Savannah, Ga., where Sherman was headquartered following his famous March to the Sea. The meeting was unprecedented in American history.

“Today, we commonly use the phrase “40 acres and a mule,” but few of us have read the Order itself. Three of its parts are relevant here. Section one bears repeating in full: “The islands from Charleston, south, the abandoned rice fields along the rivers for thirty miles back from the sea, and the country bordering the St. Johns river, Florida, are reserved and set apart for the settlement of the negroes [sic] now made free by the acts of war and the proclamation of the President of the United States.”

“Section two specifies that these new communities, moreover, would be governed entirely by black people themselves: ” … on the islands, and in the settlements hereafter to be established, no white person whatever, unless military officers and soldiers detailed for duty, will be permitted to reside; and the sole and exclusive management of affairs will be left to the freed people themselves … By the laws of war, and orders of the President of the United States, the negro [sic] is free and must be dealt with as such.”

“Finally, section three specifies the allocation of land: ” … each family shall have a plot of not more than (40) acres of tillable ground, and when it borders on some water channel, with not more than 800 feet water front, in the possession of which land the military authorities will afford them protection, until such time as they can protect themselves, or until Congress shall regulate their title.”

“With this Order, 400,000 acres of land — “a strip of coastline stretching from Charleston, South Carolina, to the St. John’s River in Florida, including Georgia’s Sea Islands and the mainland thirty miles in from the coast,” as Barton Myers reports — would be redistributed to the newly freed slaves. The extent of this Order and its larger implications are mind-boggling, actually.” (http://www.pbs.org/wnet/african-americans-many-rivers-to-cross/history/the-truth-behind-40-acres-and-a-mule/)
Stanton had gone to a group of African American preachers and ministers at the conclusion of the war, asking what would be an appropriate payment for the debasing of a race and people.  The answer was the assurance of future economic freedom by receiving land on which to farm, land that had been taken in Sherman’s march along the southeastern coast of the United States.  Sherman later threw in the single mule with the 40 acres – as many of the pack animals were now available after the war.

“And what happened to this astonishingly visionary program, which would have fundamentally altered the course of American race relations? Andrew Johnson, Lincoln’s successor and a sympathizer with the South, overturned the Order in the fall of 1865, and, as Barton Myers sadly concludes, “returned the land along the South Carolina, Georgia and Florida coasts to the planters who had originally owned it” — to the very people who had declared war on the United States of America.”

Only a small handful of states – Hawaii, Montana, New Hampshire, North Dakota and South Dakota – do not recognize the date as a day for observance, a ceremonial holiday or state sanctioned holiday.  45 other states, including Illinois, recognize the date’s importance and its observance of the participation and achievements of African-Americans in the progress of our country.