Tag Archives: pensions

Public Pensions Bankrupting the City of Freeport!

 The mayor of Freeport and certain council members have stated in the past that Freeport’s share of the real estate tax bills for residents of the city is less than 10% of the total bill. There are council members who believe that the citizens of Freeport have an unlimited ability to pay more taxes in order to pay the pensions for retired public employees. As Paul Harvey used to say – now for the rest of the story. Real estate taxes are not the only source of revenue for the City of Freeport. Freeport taxes everything from taxes on all of your utility bills, cable bills, restaurant meals, and even a transfer tax on the sale of your home. Look at your water bill – there is a capital improvement charge of $16.00 and a storm water charge of $4.00. This is just another tax, but one that has no relationship to actual usage. The water portion of many residential users is less than $10.00, but there is an additional $20.00 tax on your bill. 

The overall tax rate paid by homeowners in the City of Freeport is one of the highest in the State of Illinois. Most of us know why our taxes are so high. There are just too many public sector employees such as firemen and policemen who retire in their early 50’s with large pensions. To top it all off, they then get a minimum increase in their pensions each year of 3%. In 10 years many are making more that they were when working. Of course, many of them retire to a new public sector job in another state such as Florida which has no income tax and lower property taxes.

And to those of you who retired from the private sector and are living on social security, you will receive no increase in 2016. I can assure you of one thing. Your real estate taxes will continue to climb in the City of Freeport as the value of your homes continues to fall.

Illinois Politicians Want Higher Income Taxes to Pay for Reckless Spending and High Pensions!

To help solve the uncontrolled spending and pension issues in Illinois, many Illinois legislators including the governor want higher income taxes which will be generated by a graduated income tax! They say taxes for most people will go down. That may be true if you do not work, but if you are working watch out! The middle class always bears the burden of any significant tax increase. Who paid when Illinois income taxes went up 67% in 2012? It will take an amendment to the Illinois Constitution to permit a graduated income tax. This means it must be approved by the citizens of this state. Remember this – a high percentage of the people in this state work for the government or are retired from government jobs. They will vote to retain their high salaries and pensions! This is a fact!