The Public Pension Crisis: Are Your Taxes Going To Go Up?

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Most state and local pension funds turned in stellar performances for the fiscal year ending in June, reflecting a roaring stock market. But as this episode of What’s Ahead makes clear, one great year doesn’t wash away decades of underfunding, poor plan performance and mismanagement.

These pension funds still don’t have sufficient assets to meet future obligations, and markets can have bad years as well as good ones.

A big systemic problem is that these pensions are still defined benefit plans, and the oft-exorbitant promises made by election-obsessed politicians bore little relation to reality. But even a mild reform, such as having new government workers switch over to 401(k)-like plans meets fierce union resistance.

Taxpayers: Clutch your wallets—real and electronic! 

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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,

Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy. Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It. Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional). Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate. In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.

Source: https://www.forbes.com/sites/steveforbes/2021/10/12/the-public-pension-crisis-are-your-taxes-going-to-go-up/

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