The Illinois “pension problem” illustrated by one chart
Source: https://www.zerohedge.com/news/2018-07-09/truth-about-illinois-pensions-one-stunning-chart
This is one stunning graph that I think anyone can understand.
Look at the gap of revenue growth vs Illinois Pension Benefits growth....do you see this getting bigger or smaller?
This should be front and center of today’s conversations for “solutions”? But we know a states favorite way to handle this.....TAX all the people ....again.
This is what is happening in many states and sooner or later these pensions will have to face reality.
Either you cut pensions by a very large percentage (and face lawsuits)
You tax people so much that they leave the state of Illinois
Whoops — looks like it’s happening already and New York and California are leading the way. And the people staying get stuck with the increased taxes.
The state will run out of people to tax in the end. It is common sense to leave if you are hard working and productive. And people who want free handouts will move in
It’s very noticeable problem in some major states. I really think overall taxation will change to a VAT approach. You are right, people cannot handle the increases.
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See that downturn in the purple line?
There are people saying that it was mostly because of one rich person leaving the state.
Well that doesn’t bode very well for the state any way you look at it. I really think they are just waiting for all to collapse and ask for a “get out of jail free card”.