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Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

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  #21  
Old 01-04-2011, 10:06 PM
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Originally Posted by silverfox View Post
How can income tax revenue fall in the year they increase the rate from 2% to 3%. I call shenanigans.
Umm, Illinois income taxes have been 3% for as long as I have lived in Illinois (over 15 years). There was a proposal to increase it to 4%, but that was shot down.
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  #22  
Old 01-05-2011, 12:31 AM
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Umm, Illinois income taxes have been 3% for as long as I have lived in Illinois (over 15 years). There was a proposal to increase it to 4%, but that was shot down.
You're right. I thought they increased from 2 to 3 but they were talking about increasing it from 3 to 4.5. I remember seeing 50% income tax increase proposal.
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  #23  
Old 01-07-2011, 09:49 AM
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You're right. I thought they increased from 2 to 3 but they were talking about increasing it from 3 to 4.5. I remember seeing 50% income tax increase proposal.
Why stop at 50% when you can get a 75% tax hike.

http://www.cltv.com/news/wgntv-incom...,1841023.story
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  #24  
Old 01-07-2011, 12:29 PM
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http://mobile.chicagotribune.com/wap...aking+Business

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As Illinois lawmakers huddle behind closed doors this week trying to find ways to plug the state’s $13 billion deficit, municipal-bond investors are sizing up how to wager amid the state’s woes.

The state’s bonds have the highest spreads — a measure of the perceived risk of default — of any state, according to Thomson Reuters data. Meanwhile, the cost of insuring against the bonds’ default keeps rising. Many muni-bond investors are avoiding Illinois even as they buy bonds of other cities and states. Others believe the state may prove a good bet, either because it will get its financial act together or be aided by the federal government.

Illinois is striking fear in bond buyers’ hearts, they say, because, more than many other financially troubled governments, the state has increasingly relied on debt to pay bills, rather than making deep spending cuts or raising income taxes to increase revenue.
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  #25  
Old 01-07-2011, 01:26 PM
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I think it's great that taxes are being raised, it's the only way to get voters to pay attention. Hopefully they will realize the dangers of politicians making long term promises. Hopefully.
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  #26  
Old 01-07-2011, 01:26 PM
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  #27  
Old 01-07-2011, 01:52 PM
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Originally Posted by Schroeder View Post
Why stop at 50% when you can get a 75% tax hike.

http://www.cltv.com/news/wgntv-incom...,1841023.story
http://mobile.chicagotribune.com/wap...ng+News+Center

Quote:
House lawmakers left town today without voting on a major income-tax increase as doubts emerged about whether there's enough support to pass it.

"The votes aren't here in the House yet," said Rep. Frank Mautino, D-Spring Valley, a House budget expert. "There's not 60 votes."
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  #28  
Old 01-13-2011, 07:36 PM
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http://mobile.chicagotribune.com/wap...aking+Business

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The Daley administration is flying into dangerous financial territory by increasing borrowings for the expansion of O’Hare International Airport to unprecedented levels in order to keep the runway construction project going, a top bond credit rating agency cautioned Wednesday.
Fitch Ratings downgraded O’Hare revenue bonds as well as bonds backed by passenger ticket taxes to “A-” status, while assigning a “stable” rating outlook.
The action came two days after Moody’s Investors Service downgraded to a “negative” outlook from “stable” some of the revenue bonds that Chicago has issued to help pay for the $15 billion O’Hare Modernization Program and related capital improvements deemed necessary for the success of the massive airfield project.
The credit-rating downgrade also comes as Chicago prepares an emergency $1 billion bond issuance to sustain the O’Hare project.
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  #29  
Old 02-18-2011, 05:37 AM
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This sounds promising.

http://www.nytimes.com/2011/02/18/bu...pagewanted=all


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The first time Illinois tried to bail out its teetering pension fund by borrowing billions of dollars, it ended in disaster.

Nevertheless, the state is trying again.

Illinois hopes to sell $3.7 billion of bonds to make this year’s contribution to its fund. It is essentially paying a single year’s bill by adding to its already heavy debt load. That short-term thinking is not unlike Americans taking out home equity loans to pay for cars and vacations before the housing bust.
....


“When I read this, quite frankly, it made me ill to my stomach, because that pension plan has been consistently abused now for at least the last 16 or 17 years,” said Brad M. Smith, president-elect of the Society of Actuaries, which is based in Illinois.

Mr. Smith, who was speaking on his own behalf, is also chairman of Milliman, a large actuarial firm. He called the state’s schedule of pension contributions for the coming years “incredibly dangerous,” adding: “There’s a reasonable chance that these plans will run out of money.”

He said one of the main problems was a state law, passed in 1994, permitting Illinois to contribute less to the pension fund every year than the amount that would actually cover the benefits. Adding new bond proceeds will not address that basic flaw.

The prospectus states that Illinois calculates its statutory pension contributions each year according to an accepted actuarial method. In recent months, however, outside actuaries have reviewed the calculations and argued that Illinois’s method is not one of the permitted ones. They say that when Illinois enacted its 1994 pension law, it erred, a problem that has escaped detection until now.

Actuaries that work for states are coming under more scrutiny. In October, an official from the S.E.C.’s special task force for public finance gave a tough talk at the annual meeting of the Conference of Consulting Actuaries.

“Don’t be passive if you are aware of inaccurate statements or questionable practices, particularly to conceal or distort your actuarial analysis,” said Peter K. M. Chan of the S.E.C.’s Chicago office. He described recent cases where the commission had found actuarial numbers being used to mislead municipal bond investors about the health of public pension funds.



“It’s a warning,” said John M. McNally, a partner at the law firm Hawkins, Delafield & Wood, who is helping the city of San Diego with its financial disclosures after a pension fund scandal there.

The commission sued several city officials, but not the actuary, in the San Diego case. Mr. McNally said the S.E.C. now seemed to be putting actuaries on notice that they, too, could be liable under federal securities law for aiding and abetting fraud.

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  #30  
Old 02-18-2011, 02:59 PM
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This should be fun.

http://www.chicagobusiness.com/artic...#axzz1EKq9Jf9o

Quote:
Gov. Pat Quinn may ask the federal government to guarantee debt he said the state has to take on to make this year's contribution to its pension fund.


The detail was disclosed within Mr. Quinn's budget, which he released Wednesday, and was reported Friday by the New York Times.


The $3.7 billion in bonds Mr. Quinn wants to use to pay the state pension fund were supposed to go on sale Thursday, but the transaction has been scheduled for Tuesday and Wednesday. The likelihood that the federal government would back the debt is small, since Republicans have hinted that they would oppose that kind of support.


Yeah right.
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