Re: Pensions

[Kulaf]

Interesting article on the tax burdon to pay pensions to city/state workers:

http://money.msn.com/retirement-investm ... 893d580bee

[Ddrak]

I think they're making it out as bigger than it is (not that it won't be an issue though). You can't just divide the shortfall by the population - you have to spread it based on the progressive tax structure which would dump most of the increase on the top 5% and none on the bottom 50%.

They should just roll pensions into General Revenue and deal with the bill each year in a balanced approach. That way they're effectively earning bond rates and will immediately feel the pain if they are overspent. I think having separate balance sheets, especially for future debt, distorts the real picture.

Dd

[Kulaf]

My state not only doesn't have a progressive personal income tax......it has no personal income tax at all. So how they divide it up is pretty close to accurate.

[Ddrak]

Fair point. Got confused between state and federal.

Dd