Chicago in financial doo doo (pensions)

11C1P

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See that's the thing, while it's great getting dead people to vote you into office & vote for your socialist/communist programs, they don't pay any of the taxes towards them.

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ancona

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Chicago needs to declare bankruptcy, as does the rest of the state. Re-set their pensions and move the hell on. There will be much wailing and gnashing of teeth, but there is no other way. If they continue to bleed the populace, they will simply leave, just as they have been doing. In fact, they've been doing it in all the high tax states.
 

pmbug

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So a year ago Rahm Emanuel talked about a Chicago owned casino. Looks like the "casino to fund pensions" plan is a go.

After years of pushing a Las Vegas-style casino to boost tourism and much-needed revenue, Chicago’s leaders seemingly hit the jackpot when Illinois lawmakers approved one as part of a massive gambling expansion.

But obstacles remain before anyone can place any bets. The city must convince state lawmakers to vote on a plan that officials say makes the casino more profitable as well as choose a location, which already has sparked disputes.

Here’s a look at the issues ahead:
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Chicago would use profits to pay down pension debt.

Payout problems

Revenue estimates vary. State experts agree the Chicago casino will easily outperform Illinois’ highest-grossing casino, Rivers Casinos in the suburb of Des Plaines, which generated $440 million last year with its 1,200 gambling positions. The feasibility study said one site at a former hospital could gross over $950 million by year five.

But there’s a big hitch.

The same feasibility study said the “onerous ” tax and fee structure in the gambling law — the highest nationwide — would make a Chicago casino “not financially feasible.” The effective tax rate could be up to 72%, including a 33% tax on gross casino receipts that Chicago would use for police and fire pensions. The one-third rate, which applies to Chicago and not the other casinos, was written into the plan after lawmakers rejected the idea of a city-owned casino.

The study concluded any casino operator’s revenue would “likely equate to a few pennies on the dollar.”
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https://www.courant.com/ct-cb-chicago-casino-20191130-hrflyoppvjfnzd6vuhnkqlrice-story.html
 
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