Two solutions to pension problem
Thanks for the great series on state pensions, maybe Pulitzer Prize material. But aren't there two other solutions?
1. Tax pension benefits. Right now, retirement benefits are state-tax free. Illinois is one of the few states that places absolutely no limits on the amount of retirement income that is totally tax-free. To raise taxes on incomes but continue to exclude pensions seems to be unfair. The federal government, you'll note, taxes Social Security benefits, and states like California tax pension benefits for those retired employees even when they move out of state.
2. Change the Constitution. If the Illinois Constitution was amended to preclude decreasing pensions, it would seem to be open for amendment to remove this prohibition, now that the chickens have come home to roost.
Bill Bahr
Bloomingdale