Originally Posted by pb4uski
Yes, you have quite the mess in Illinois. The pension mess and four of your last seven governors have been incarcerated! (as of 2013). Not many other states can make that claim.
My sister has a home there and they can't wait to get out once my BIL retires in a couple years. I suspect that ultimately we'll hear a giant sucking sound of people leaving, which unfortunately exacerbates the problem.
Not only that, but the State tax was raised a few years ago to 5% to help pay off some of the debts, however instead the debts continued to rise.
Now the tax rate has been lowered to 3.75% by the new governor, since the increase only really went to increased spending.
My belief is the tax rate will need to jump to 10% and they will need to tax all pensions to pay off these generous (pay + pension promises) made in the past. This will be constitutional, as the retiree's get their pension at the full amount, then have to pay taxes on it, the actual pension is not reduced.
Count me in as one of the sucking sound makers