Two of the assumptions here are that residents want to "maintain their current level of services" and that public service pensions are protected by the state's constitution and must be paid.
So, moving on:
http://midwest.chicagofedblogs.org/?p=3096
Quote:
Illinois will have to find additional revenues from already existing tax bases, either by increasing rates, expanding the definition of what is taxable, or a combination of the two.[4] Illinois state and local governments have three primary tax revenue sources—income, sales, and property—and each presents a unique set of tradeoffs in terms of how it affects the economy and who pays it.
In our view, Illinois’s best option is to impose a statewide residential property tax that expires when its unfunded pension liability is paid off. In our baseline scenario, we estimate that the tax rate required to pay off the pension debt over 30 years would be about 1%. This means that homeowners with homes worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000.
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I'm not sure what's more mind-blowing - a typical homeowner ($250K) paying $75,000 over 30 years for pension promises built on a crony math, referring to tax streams as "revenue" instead of parasitic rake, or the neat and tidy charts of bad math and projections used to substantiate this fine idea brought to you by the same thinking that dug this financial ditch to begin with.
Wow.
If Illinois had a better climate, these guys would be shaking down the homeless and considering that "untapped revenue"....
