A few years ago, I was talking to a new college graduate who was moving to an expensive, distant city where she didn’t have a job.
I asked, “How will you support yourself?”
She shrugged and said her parents had money and would support her whether or not she found work.
I couldn’t help but think, “Her parents aren’t doing her any favors.”
Sure enough, during the past several years she has failed to hold steady long-term employment.
These types of blank-check relationships often are filled with good intentions but seldom have positive results.
Illinois Moves Toward Guarantee
And right now, the Illinois General Assembly is on the brink of creating a similar relationship with its pension funds.
The mistake is called a pension guarantee.
And several pension reform bills being considered by the General Assembly – including one introduced by House Speaker Mike Madigan (D-Chicago) – have guarantee language.
The legislation allows the pension funds to sue the state if the amount of money they...
If taxpayers and ratepayers want to avoid unaffordable utility bills and huge liabilities in the not-too-distant future, they must insist now on more competition, oversight, and innovation in the way public officials manage the nation’s water and sewer systems.
That’s the conclusion of a comprehensive study by the 362,000-member National Taxpayers Union (NTU). The analysis projects hundreds of billions of dollars in future government expenditures could be saved by adopting techniques such as...
The U.S. Senate recently passed the Marketplace Fairness Act, which would force online retailers to collect sales taxes for states in which purchasers reside. Most have heard how this will hit us when we purchase goods over the Internet. But a lesser-known problem is the legislation also would enable states to levy new taxes on 401(k) and other savings vehicles.
How? The bill authorizes states to “require all sellers not qualifying for the small seller exception [$1 million in sales or less] to...