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more on state bankruptcy
Old 01-24-2011, 11:02 AM   #81
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more on state bankruptcy

there was a recent thread on state bankruptcy and over the weekend I heard some talk of it on the news shows.

this is from the NY times talking about it. "Bankruptcy could permit a state to alter its contractual promises to retirees, which are often protected by state constitutions, and it could provide an alternative to a no-strings bailout. Along with retirees, however, investors in a state’s bonds could suffer, possibly ending up at the back of the line as unsecured creditors."

I thought this would be of keen interest to the many here who have state pensions.

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Old 01-24-2011, 01:12 PM   #82
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No question it is going to get very ugly at some point on the state and local pension front. Most likely will be resolved through a combination of layoffs, increased taxes and increased contributions/diminution of pensions.

Knowing politicians (which are beholden in most cases to the public unions) they will put off the inevitable as long as possible. But one of these days it will have to happen.

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Old 01-24-2011, 01:47 PM   #83
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It seems like a legal framework to restructure state finances is something we should have as a matter of course. The timing may not be ideal, but why doesn't this already exist?

Having said that, I don't think any state is at risk for bankruptcy. There is no state that is even close to maxing out its potential revenue streams AND bumping up against constitutionally mandated spending constraints. Bankruptcy at this stage in the game would be a political choice, not a financial imperative.
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Old 01-24-2011, 02:02 PM   #84
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Originally Posted by 52andout View Post
there was a recent thread on state bankruptcy ...
What is the probablity that your State Bankrupts?

Specifically, here:

What is the probablity that your State Bankrupts?
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Old 01-24-2011, 02:48 PM   #85
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Originally Posted by scrabbler1 View Post
As a New York State resident, I am not going to weep much for Illinois residents who will be paying 5% (the top rate, I assume, although I don't know at what income level it kicks in at). Here in NYS, the 5% income tax rate kicks in for single filers at $11,000 with a 6.85% rate kicking in at $20k and even higher rates at incomes into 6-figures (although they may be getting sunsetted this year).

New York City had a non-resident income tax, called the "Commuter Tax" which got repealed in 1999. It was 0.45%. The repeal applied to NYS residents who did not live in NYC but I am not sure what happened to out-of-state residents such as those who live in New Jersey or CT. There have been proposals to reinstate the Commuter Tax but the NYS legislature lacks the votes to pass it.
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Let's see how he does. He was the Attorney General, so he knows the law much better than the NYS legislative cronies members.

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Old 01-24-2011, 05:31 PM   #86
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I merged the two threads.

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