“Chicago will give 5,000 lucky lottery winners $500 a month. “
Hey, wouldn’t be America if it wasn’t Arbitrary. Useless dilettantes arbitrarily “doing studies” with other people’s earnings.
Citizen Salaries are great. Or, if not great, at least better than any and all possible alternative means fo government to arbitrarily hand out money. But they have to cover everyone equally. And be sustainable; meaning a percent of money already collected.
RonJ
2 years ago
KTLA: Los Angeles residents can begin applying Friday for a 12-monthlink to ktla.com that will provide $1,000 monthly payments to more than 3,000 residents, “no strings attached,” officials said.
db_
2 years ago
In 2021, City Council approved a $94 million property tax increase that
included a provision annually raising taxes at a rate tied to the
Consumer Price Index. This year’s hike would be 1.4 percent, determined
by the increase from December 2019 to December 2020.
Sweating details with respect to reported numbers is increasingly difficult to find. The quote above (from the cited article) is a perfect example of the kinds of numbers routinely cited across media. It’s unclear for instance whether 1.4 percent ‘hike’ is a hike in the ‘mill rate’ or targeted gross tax amount. It’s an important distinction since property taxes are tied to property appraisals and the gross collection is a function of BOTH the mill rate and the property valuation (in addition to a plethora of half-baked rules designed to game the aforementioned to ensure ‘fairness’ because for some reason transparency and simplicity are routinely deemed ‘unfair’).
Chicago property taxes have grown 90% since 2010. Every bit of that went to teachers’, police, and fire unions.
The same sort of issue arises in the above quote. Did the 90% growth result mainly from increasing property valuations or was the mill rate being increased annually to net that growth? It’s an important distinction because both mill rates and increasing property valuations result in a taxation by stealth and lead to long term moral hazard issues. Most councils in large cities will get an appraisal report annually then tweak the mill rate to raise a targeted amount via property taxes. It’s a haphazard process, prone to errors and make civic budgets overly complicated and unpredictable to manage at the best of times. The ultimate destination for the money is an entirely different can of worms.
Thanks MIsh for your continued work pointing out the inherent risk associated with both municipal taxation and pension deficits. It is the level of government that receives the least scrutiny despite having the biggest impact on day-to-day lives of residents. Before, during and after the 2007-2012 financial crisis your work highlighting MBSs, Securitization and other financial WMD’s (borrowed from Buffet) was especially excellent and well received; especially when you highlighted how inexperienced local officials were buying and selling products whose risk they clearly did not understand. Has anything really changed since then?
Stan888
2 years ago
Most Chicago residents are already getting UBI in the form of food stamps, section 8 housing, child tax credits, welfare, SSDI, medicaid etc.
Captain Ahab
2 years ago
The grand plan of the Left is to pay people to:
a) not ‘work’, or produce anything of value
b) sit on the couch and do social media,
c) watch porn and make low IQ babies (like themselves), and
d) vote democrap.
They will fund their grand plan by stealing the wealth of successful innovators and entrepreneurs.
When you get more of something when you subsidize it, and less of something when you tax it, what could possibly go wrong?
b) using the funds to actively reduce crime on the streets and stop the weekly slaughter of innocents
Has my statement blown up in my face? If so, I’d appreciate if you could identify what in particular. That said, your comment reeks: ‘conspiracy theory’ and ‘Q.’ Those tend to be the fall-backs of mediocre liberal minds
Felix_Mish
2 years ago
One might wonder what the difference is between these basic-income trials and lotteries. Which has the most winners?
thimk
2 years ago
Chicago will be under water , literally . infrastructure needed ?.
And the phrase, “The world doesn’t owe you a living.”
Parents of teenagers are spinning in their graves now. 🙂
Of course, facts are what they are. You can’t tell a typical kid that there is no free lunch without damaging your credibility. They’ve known no other world than one that provides a free lunch.
shamrock
2 years ago
You could pay for basic income by eliminating the hundreds of other government assistance programs.
True. But, the question is, what about people who cannot manage a “basic income”? That is, the truly needy.
KidHorn
2 years ago
They’ll get a lot of the money back from lottery tickets and liquor taxes.
dbannist
2 years ago
I’d love to see a post on the unfunded liabilities on pensions in Illinois.
Where is the pension funded invested and how much would that have to fall to wipe out the fund? At what point does it go bust? I know its in serious trouble but it’s been a while since I’ve seen an update on that, either here or on Zerohedge.
How much time does that ticking time bomb have if the stock market goes sideways for 10 years?
Tony Bennett
2 years ago
Sure, why not? Sounds like a swell idea … its not like its pensions are (severely) underfunded or anything ……… oh, wait …….
Over the past ten years, the unfunded liabilities of the four pension funds combined have grown by $15.3 billion, or 91.6%. This was an increase from $16.7 billion in FY2011. The total unfunded liabilities of the four funds increased to $32.0 billion in FY2020 from $31.0 billion in FY2019, or by 3.17%.
Your math is wrong “500,000 * $500 * 12 = $3,000,000,000” because 500,000 is people. The program gives per household. Figure about 2 people per household.
So math is probably more like 250,000 * 500 * 12 = 1,500,000,000!
Where is the pension funded invested and how much would that have to fall to wipe out the fund? At what point does it go bust? I know its in serious trouble but it’s been a while since I’ve seen an update on that, either here or on Zerohedge.
How much time does that ticking time bomb have if the stock market goes sideways for 10 years?