The public sector unions are killing this nation. In many municipalities generous pensions are forcing tax increases. This is wrong since in many location public sector workers make 2 to 1 vs. private sector pay. They get pensions while most workers are lucky to get a 401K, which is not guaranteed money. This is an unsustainable situation because the more capital sucked up by the government the less available for investment in the private market.
Cities across the nation are raising property taxes, largely citing rising pension and health-care costs for their employees and retirees.
In Pennsylvania, the township of Upper Moreland is bumping up property taxes for residents by 13.6% in 2011. Next door the city of Philadelphia this year increased the tax 9.9%. In New York, Saratoga Springs will collect 4.4% more in property taxes in 2011; Troy will increase taxes by 1.9%.
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Local officials and government workers say a confluence of factors is driving the increases, including the need to make up for staggering investment losses from the financial crisis and rising costs as more workers retire. In addition, benefit increases promised in flush times are coming due as revenue flounders, and some cities have skipped payments to their pension funds over the years.
Read the rest: Pensions Push Taxes Higher
This situation is just plain wrong. Why should workers who are providing public services funded by taxpayers get more pay and benefits than private workers who create the wealth? It is a Neo-Feudal system where we work and the government reaps the benefits. Taxes should not be raised, pensions should be cut. In fact, pensions should be eliminated and replaced with the 401K plans that private workers have. This situation is hurting this nation and unless hard choices are made it will cause an economic unbalance that will render America the global economic sick man.
