Jim Tobin Blasts “Demorats”

The day after Illinois Democrats voted to increase state income taxes on families by 67%, National Taxpayers United of Illinois President Jim Tobin brought his public pension revelation tour to McHenry County College in Crystal Lake.

Jim Tobin

“They’re voting to line their own pockets,” Tobin charged as reporters were looking at the list of the top fifty legislative pensioners.

It got better:

“They’re all self-serving greedy bastards lining their own pockets.”

“This was a structured vote,” Tobin explained, calling for the defeat of all legislative Democrats.

“I don’t care if they voted against the income tax or not. They cut deals all day long to allow those in competitive districts to vote ‘No.’”

McHenry County Democrat Jack Franks voted against the tax hike bill (SB 2505), but was incorrect in his prediction that such a bill would fail.

“These government pension are bankrupting the state,” Tobin asserted. “Most of the income tax will go to fund these pension increases,” he explained after distributing the names and amounts of McHenry County’s top pensioners in various public pension funds.

“That doesn’t even include the health benefits, which are over $100 million a year.”

Tobin said that forcing retired government workers to pay half of their health care premiums wold save $230 billion.

“Within ten years there will be over 40,000 receiving over $100,000 per year,” Tobin predicted.

Such a prediction is possible because public pensions have a three percent annual “cost of living” increase.

Tobin predicted another income tax hike.

“The income tax ten years from now will be approaching 10%.”

Tobin talked of the employee benefits of state policemen, whose primary job was “to work precincts.”

The tax fighter noted that he first noticed that when state policemen were tasked to work precincts for State Rep. Ann Hughes in a primary fight (against Steven Robert Verr).

“There were six state cops out working precincts,” he said.

Christina Tobin, who is chairman of Free & Equal, identified six Republican legislators who were thinking of voting for the income tax increase.

Tobin pointed out that state policemen are allowed to retire at age 50 after twenty-five years, adding that if one lived to age 81, highly possible with their “low pressure” job, a pension would pay off $5 million.

An interesting back story was related.

Tobin’s 29-year old daughter, Christina, discovered that six GOP legislators planned to vote for the income tax hike. Four were state reps and two state senators.

Tobin claimed the pressure put on the four representatives was the reason Mike Madigan couldn’t pass the tax hike Sunday night.

“The Democrats obviously cut deals with other Democrats. I don’t know how much Madigan is bribing people.”

“Madigan is basically putting a nail in the coffin of the next governor of Illinois, Lisa (Madigan, his daughter, who serves as Illinois Attorney General).”

Tobin talked of the possibility of moving to his $300,000, 150-foot waterfront home in Wisconsin, “if the rate goes to 8-10%” in Illinois.

“All I have to do is change my residency.”

“If Wisconsin cuts their personal income tax rates, they’ll see more people like me paying Wisconsin income tax.”

Asked is retirement income should be taxed, Tobin said it should not be.

Even though it would be appropriate to tax pension income of retired government workers, he explained, most of the taxes would be imposed on private pensions.”

He pointed to the uniformity clause in the state constitution as the impediment to taking one type of retirement income, but not another.

“I myself will have to work until I drop,” Tobin said.

“They’re greedy, self-serving bastards…including those blood suckers over at Channel 11, Window To The World,” whom he pointed out get government subsidies.


Comments

Jim Tobin Blasts “Demorats” — 6 Comments

  1. Can you publish or find out the names of the two republican Reps and Senators that where going to vote yes.

  2. Tobin is a zealot. While he boasts of his Wisconsin Lakefront home, he belittles the work of policeman.

    For the STATE pensions, had the state matched the pension contributions as is required, combined with the employee contributions, these pension funds would have sufficient funds to pay annuities from the yearly interest.

    A person with a 401K does not equally divide the balance and spend it over their retirement years; they hopefully have contributed long enough that the balance will allow the retiree to live off the interest.

    I know local Sheriff’s, Police and Fire all pay between 7.5 and 9 percent of gross salary each year for the length of their career. A very sizable sum.

    Like a private employer, the municipality contributes a matching amount. Given the historical gains in the stock market for these professionally managed funds, most 25-30 year emergency service workers would have in excess of one million dollars in the fund. Contributions compounded over 25-30 years.

    Only taking a 6% each year would be $60,000 payable for life and the principle is never touched.

    Mr. Tobin espoused that these workers are paid their pensions as if no retirement pool existed. The majority of local workers, County and City are in IMRF which is currently 87% funded by reserve contributions. Solvent by any standard and IMRF was listed as the best municipal retirement fund in the country. Luckily it is NOT a STATE fund or the State would have robbed it blind.

    Tobin should limit his nasty comments ONLY to the Teachers Retirement and State Pension funds which have been robbed by the state each year. It is not the retirees fault the legislature spent the money.

    Tobin was interview on Fox and stated he feels public workers should not have any pension. Like I said he is a zealot. He needs a lesson in actuarial investments.

    Nobody that robs their 401 or IRA account could expect there to be a sustainable balance. The State robbed the pension funds and now people such as Tobin blame the retirees. Sad.

  3. I’ve always been a saver and investor.

    Teachers and State employees contribute to their retirement but their money was going into State pension funds.

    This money should have grown just as Rich said but using an analogy, the State of Illinois has been eating their seed corn.

    Nothing was left to grow because Springfield wouldn’t say no and spent, spent, spent.

    They grew State government into this huge social security net for Chicago. The governors and legislators saw the pension funds as their own personal piggybank.

    They broke open the piggybank, took the money and now they are making the employees be the scapegoat.

    The “rule of 72” will indicate how fast money grows.

    Divide 72 by the interest rate. For example the historical stock market has been over 8%. 72/8% = 9 years.

    Every nine years money in a mutual fund at 8% gain will double every 9 years.

    So $10,000 invested at age 20 would be worth about $240,000 at age 60 without any other contributions.

    Add to this each week or month and it grows exponentially.

    Most professionally managed funds far exceeded the 8%.

    Some were in double digits for the past decades.

    The figure above of over a million is easily attained. Google rule of 72 and do the math yourself.

    Unfortunately people do not understand the power of yearly contributions and dollar cost average investing.

    They wait until they are 50 years old and have never put any savings away, or never contributed to an IRA or company 401K.

    Too late then!

    Had they been contributing each month, year after year along with the power of compounding they would have created a nice nest egg over 30-40 years.

    There would be money for retirement but now they just grumble because the public employees that worked 25 -30 years contributing each month get a nice retirement and they don’t.

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