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How Retirement Benefits May Sink the States

http://online.wsj.com/article/SB1000142405270230359240457736...

Chicago Mayor Rahm Emanuel [an Obama Democrat!] recently offered a stark assessment of the threat to his state's future that is posed by mounting pension and retiree health-care bills for government workers. Unless Illinois enacts reform quickly, he said, the costs of these programs will force taxes so high that, "You won't recruit a business, you won't recruit a family to live here."

"Companies don't want to buy shares in a phenomenal tax burden that will unfold over the decades," the Chicago Tribune observed after Mr. Emanuel issued his warning on April 4. And neither will citizens.

Government retiree costs are likely to play an increasing role in the competition among states for business and people, because these liabilities are not evenly distributed.... Indiana's debt for unfunded retiree health-care benefits, for example, amounts to just $81 per person. Neighboring Illinois's accumulated obligations for the same benefit average $3,399 per person.
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You can stay on the path to fiscal health or you can put Democrats back in charge and rejoin the race to the bottom faster than you can say "The hell with this -- I'm moving to Indiana."

--fleg
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