Tax Increases to Cover Government Pensions
In a recent article on state pension obligations, The New York Times provided calculations as how much each state would need to increase taxes per household per year to eventually fully fund their pension plans. For example, the state of Colorado would need to increase taxes by $1,739 per year for each household to meet its benefit obligations to state workers.
The calculations were made by economists Robert Novy-Marx and Joshua D. Rauh. Click here for an enlightening and sobering view of the states' $176 billion pension gap.