"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27, 2010

Friday, October 2, 2015

The Right to Inherit Debt

Yesterday we posted an essay about our rights and consequences and obligations.  Today we bring it to specificity – real life here in our American backyard – the right to inherit debt – which simply means the right to repay an obligation for which the obligor receives nothing; did nothing to incur.

We bring you Rahm Emanuel and his bright "new course" for all taxpaying Chicagoans.     Mayor Rahm, democrat overseer of the insolvent city of Chicago, in a very recent press release (we have added some comments and questions):
Office of the Mayor
City of Chicago
For immediate release
September 22, 2015 

·         To address the amended 2015 Police and Fire pension payment, the property tax levy would be raised by
o   $318 million in 2015
o   $109 million in 2016
o   $  53 million in 2017
o   $  63 million in 2018
o   That’s a total of $ 543 million every year thereafter
o   Over one half of one billion dollars every year forever and ever until bankruptcy
o   Plus of course whatever else they add on later, and
o   Plus of course whatever the other “city” taxing bodies add to their tax levies, and
o   Plus of course whatever happens to the valuations, etc., etc., etc.
·         What do the citizen taxpayers get for this largesse?
·         Well normal answers of course would probably include things such as:
o   More cops, firemen, ambulances
o   More roads, services, schools
o   Or just better roads, services and schools
o   Maybe a tax cut to encourage more business/jobs and
o   Maybe, more citizens will move in
·         But no, none of that.  There will be no “more” of anything
·         Why?
·         Because here is the reason for the $ 543 million increase
o    “…we will build on our progress in charting a new course for Chicago’s future and secure the retirements of our police and firefighters…”
·         You mean all that money does nothing for the people who are paying it?
·         Yes, it is all going to people who are not “on the job.”  They are all “off the job.”  And even if they were “on the job” it wouldn’t matter much would it – there would still not be one mile of new road built  or maintained; not one bridge built or rebuilt; not even one square of concrete sidewalk built or repaired; not one new school!
·         Not one thing comes to those who pay – they are getting nothing for something and that something is going to cost them at least $543 million per year, forever and ever and ever 

Emanuel, has done nothing, NOT ONE THING, to reform the city, to eliminate pension costs going forward with a defined contribution plan and mandatory social security contributions that most all of us live with; nothing to make the city schools a draw for those now forced to evacuate to the suburbs and nothing to eliminate taxes, fees and regulations on businesses to say nothing about endless, oppressive costs on residents. 

$543 million and current taxpayers get NOTHING.  Or, as our fundamental requires – pay as you go – do not burden today’s taxpayers with yesterdays obligations.  This simple long standing legal concept – pay off your debts at death needs to be written in every law in every governmental entity statute book in America.  Debts and obligations get paid; they do not pass to future generations.  Instead today's politicians have given us all the right to inherit debt.

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