Chicago is so indebted that it has more pension debt than 43 states. Chicago has only 2.7 million people, and Florida has more than 23 million people, yet Chicago has far more unfunded pension debt than Florida does. “More than 80% of Chicago’s property tax levy – including all of the automatic annual increase – goes to pensions, and the Chicago Teachers’ Pension Fund has its own property tax levy specifically dedicated to pensions. With unfunded liabilities only growing each year despite Chicago levying some of the highest property taxes in the nation among large cities, only a constitutional amendment to allow pension reform can help the city turn around its finances.” Chicago has 7 of nation’s 10 worst-funded pensions. Chicago recently borrowed $830 million at a cost of $2 billion.
Major companies like Citadel and Boeing have left Illinois, which is soft on crime and has fairly high taxes. Citadel’s CEO said he “has multiple issues with how Illinois treats its corporate citizens, he also in April said he was bothered by Chicago’s inability to control crime. ‘If people aren’t safe here, they’re not going to live here,’ Griffin said. ‘I’ve had multiple colleagues mugged at gunpoint. I’ve had a colleague stabbed on the way to work. Countless issues of burglary. I mean, that’s a really difficult backdrop with which to draw talent to your city from.’ CNBC ranks Illinois as the third-least friendly state to businesses.” If you have the median income, Illinois is the highest tax state, due to a combination of high local property taxes, and high sales taxes in places like Cook County.
