Chicago-area politicians have given their constituents something special this year, a major property tax increase. In a state already near the top for income taxes, residents of Chicago and Cook County are facing property tax bills that have skyrocketed. In the face of property tax bills that have even climbed by 60%, some residents are being forced by the bills to move out of the area. Dana Kozlov reports for CBS: Property tax increases in Cook County are going beyond sticker shock. For some families it’s life-changing, and they say they will have no choice but to move. “This is out of … [Read more...]
Retirement is No Fun if You’re Scared, Sick, or Broke
In a great piece in The Wall Street Journal, Glenn Ruffenach answers a question by a retiree who is looking to move. She wants a safe neighborhood, and Ruffenach explains that while most retirees looking to relocate are focused on the fun aspects of life like "climate, lifestyles, housing, shopping, cultural events," they should also be paying attention to things like "taxes, health care—and crime." Face it, if you're scared, sick or broke, it doesn't matter how many restaurants or shows are on Main Street, your retirement isn't going to be any fun at all. Ruffenach continues: Beyond the … [Read more...]
Despite Past Failure, Connecticut Taxes More and More
Despite what seem to be ever increasing taxes, Connecticut's politicians can't seem to pay for all their spending. Every time taxes go up, more of the state's wealthy residents decide it's time to pick up and leave. Now, Connecticut is trying to adapt. Rather than raising headline rates on income or sales, Hartford's Regents of Revenue are creating a slew of new taxes on the edges of noticeability. The Middletown Press explains this new assault on Nutmeggers, writing: The sales tax on digital downloads — things like e-books and movies downloaded from Amazon — will increase from 1 percent … [Read more...]
Small Towns vs. Big Business?
Small towns in America are often blessed with vast natural resources. When big businesses come into town to utilize those resources, it can be a boon to residents looking for good paying jobs, but it can also have surprising effects on the town. In The Wall Street Journal, Scott Patterson details the story of a major string cheese operation coming to the small Upstate New York town of Lowville. He writes: When the Philadelphia Cream Cheese factory here started making string cheese, too, in the summer of 2017, it brought scores of new jobs to town. It also boosted the facility’s water usage … [Read more...]
Your Retirement Life: Choosing Where to Retire: Part IV
Yesterday, Rhode Island Gov. Gina Raimondo extended legislation for continuing contracts for union employees, and transmitted legislation mandating overtime for firefighters. Who doesn’t like teachers and firefighters, right? But that’s not the point. Because of her actions, cities and towns in Rhode Island will have no leverage at the bargaining table since contract renewals are now guaranteed. Also guaranteed is overtime for firefighters, even though most towns already pay overtime voluntarily. Raimondo’s automatic contract extension hurts cities and towns because it’s the local … [Read more...]
Your Retirement Life: Choosing Where to Retire: Part III
Some states seem intent on pushing the wealthiest, most productive residents out with bad policies. Lately, Connecticut seems to be the most enthusiastic about encouraging its wealthiest citizens to leave, though Illinois, New York and California don't fall far behind. Now, in an effort to speed further ahead of the high-taxing competition, Connecticut is once again targeting its most productive residents. The Wall Street Journal reports: Connecticut is a gift that keeps on giving to low-tax states. Democratic Gov. Ned Lamont earlier this year pitched a suite of tax increases on everything … [Read more...]
Your Retirement Life: Choosing Where to Retire: Part II
Last week I explained the seriousness of choosing where you live during retirement. The political decisions in the state you call home could have a major effect on your standard of living. Choose the wrong state, and you can wind up paying high taxes, receiving sub-par service, and suffering a lack of freedom through what should be your most enjoyable years. Rhode Island is proving itself to be a picture perfect state to avoid. After current governor, Gina Raimondo, won on a pledge for moderate, business-friendly leadership for the state, she has found herself slipping ever leftward to … [Read more...]
Your Retirement Life: Choosing Where to Retire
Newport County’s municipalities run seven pension plans. Two of the plans, the Portsmouth pension plan and the Newport firefighter’s pension plan were only 57.2% and 51.4% funded as of July 1, 2017. In July, 2018 they improved slightly thanks to the stock market. If that weren’t scary enough, here’s a quote from one administrator: “If the market keeps doing what it’s doing, we’ll be out next year (60% funded). If not, by 2021. We’ll be 100% funded in 2041”. This is on the heels of a record stock market. On the same front page of The Newport Daily News: “City’s Schools Face Funding … [Read more...]