Quote:
Originally Posted by Chesapeake Bill
Jim,
It surely isn't a path to wealth. I did not mean to insult. Merely to point out that the deals these workers get are long term contractual agreements. I will not defend those who made them because, like you, I think they were shortsighted acts to merely gain votes. I do, however, feel we need to honor those agreements and find a go-forward approach. If that means negotiating a 401K buy-out then I am all for it. My name should give some indication that I line in the People's Republic of Maryland where we are beset with high taxes as well. My tax bill is slightly worse than your stated amount. Like you, I don't want to see it go up any more than it has to.
Bill
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"It surely isn't a path to wealth"
Yes, it surely is...at least here in CT it is...
My 2 best friends are a married couple who are public teachers in CT. They are each 41 years old, they have each been working for 17 years with masters degrees. Their combined income is about $160,000, and of course on top of that, they get insane healthcare and retirement benefits. You'd have to make a lot more that $160,000 in the private sector to equal their purchasing power, because of their benefits. In most towns in CT, public teachers can earn more than $85,000, and again, with ridiculous benefits. Also, here in CT, teachers don't participate in Social Security, which is a huge benefit. I wish I could have my social security taxes given back to me, because as it is, I pay into social security, and I don't expect to get much back (I'm 41 years old). That alone is a huge, huge benefit.
My only first cousin is a police officer. He started at age 21 in the city of New Haven, worked for 23 years, retired with a full pension ($paying $62,000 a year, for the rest of his life) at AGE 44. Then, he took a job as a detective in another town. So between his paycheck and his pension, he makes about $130,000.
In my opinion, those 2 situations represent wealthy folks. In my opinion, both of those scenarios are indescribably crazy, totally irrational, completely fiscally irresponsible, and not sustainable.
I'm not saying I want to pull the rug out from underneath those who are too close to retirement to make changes. But we need to cut back on benefits for those workers who are young enouogh to absorb the change. Again, everyone in the private sector went through the same exact switch 20 years ago, and we all managed to survive somehow.
As for the contracts...you will see some governmengts (towns or states) file bankruptcy in the next couple of years, which gives them legal recourse to re-negotiate the contracts.