Retirees like Hall deserve protection, but the federal retirement plan gives COLAs to everyone--former clerks and millionaires alike. That is very expensive. Indeed, according to a recent estimate by Money magazine, if all government pensions were cut back to private sector standards, the average person's tax bill, including federal, state, and local taxes, would drop by about 8 percent. The more important point is not our current bills but the prospect of what our taxes will be like if all of these pensions are paid out. That's the real danger.
10-Sep Report
Retirees like Hall deserve protection, but the federal retirement plan gives COLAs to everyone--former clerks and millionaires alike. That is very expensive. Indeed, according to a recent estimate by Money magazine, if all government pensions were cut back to private sector standards, the average person's tax bill, including federal, state, and local taxes, would drop by about 8 percent. The more important point is not our current bills but the prospect of what our taxes will be like if all of these pensions are paid out. That's the real danger.