Property-tax-for-pensions plan would pummel Illinois homeowners

The Federal Reserve Bank of Chicago released a report May 7 that claims to have found the best solution to paying off Illinois’ state pension debt, which researchers peg at anywhere from $130 billion to $250 billion.

The proposed solution? Force Illinois homeowners, who already pay among the highest property taxes in the nation, to pay billions more each year through a statewide property tax. The typical Illinois household would pay an additional $1,948 in property taxes for the next 30 years under this proposal to pay for the state’s pension debt – a 44 percent increase.

The report’s authors claim this plan is the best way to pay for the overpromising and underfunding of Illinois’ broken pension system, alleging that it is fair, efficient, transparent, certain and equitable. Unfortunately, the Chicago Fed economists are wrong on all counts…Please click here to read Orphe Divounguy, Bryce Hill, Joe Tabor’s story in Illinois Policy. A related story is here in the Tribune/Daily Southtown.