When and Why Golden Geese Take Wing

tax ratesClarice Feldman – My friend Lynn Chu has boiled down the basis for a just, prosperous society:

“It is very easy to spend other people’s money, thus eliminating all of the vital discrimination about the devils in the details which are knowable only at the level of the individual. This is the main justification for the protection of individual liberty against autocracy other than the clarity of the moral imperative of human rights as the privileges and immunities of the individual in society.”

When Great Britain turned over Hong Kong at the expiration of its lease, the Chinese government promised to leave its democratic institutions and law alone. Bit by bit, that promise has been eroded until  recently China pressured the local authorities to agree to an extradition treaty that would allow them to extradite from the former colony and try in China anyone, even someone merely transiting through its airport. Continue reading

Saving Illinois: Getting More Bang for the State’s Bucks

pensionEllen Brown –  Illinois is insolvent, unable to pay its bills. According to Moody’s, the state has $15 billion in unpaid bills and $251 billion in unfunded liabilities. Of these, $119 billion are tied to shortfalls in the state’s pension program. On July 6, 2017, for the first time in two years, the state finally passed a budget, after lawmakers overrode the governor’s veto on raising taxes. But they used massive tax hikes to do it – a 32% increase in state income taxes and 33% increase in state corporate taxes – and still Illinois’ new budget generates only $5 billion, not nearly enough to cover its $15 billion deficit.

Adding to its budget woes, the state is being considered by Moody’s for a credit downgrade, which means its borrowing costs could shoot up. Several other states are in nearly as bad shape, with Kentucky, New Jersey, Arizona and Connecticut topping the list. U.S. public pensions are underfunded by at least $1.8 trillion and probably more, according to expert estimates. They are paying out more than they are taking in, and they are falling short on their projected returns. Most funds aim for about a 7.5% return, but they barely made 1.5% last year. Continue reading