High Taxes Are Forcing Illinoisans To Lower Taxed States
This ARTICLE On High Taxes Are Forcing Illinoisans To Lower Taxed States Was PUBLISHED On October 11th, 2019
High Taxes are forcing Illinoisans to move to lower-taxed states with a lower cost of living and affordable housing.
- Data from a November 2018 poll of Illinoisans showed that 50% of taxpayers are considering leaving the state
- The poll numbers taken in July 2019 increased the percentage of Illinoisan’s thinking leave the state to 60%
- The number one reason for taxpayers thinking to leave Illinois is due to high taxes
In this article, we will cover and discuss the effects of high taxes are forcing Illinoisans to flee to lower-taxed states.
High Taxes Is The Main Reason Why Taxpayers Are Leaving Illinois
According to a poll taken on November 2018, over 53% of taxpayers were seriously thinking of leaving Illinois.
- A recent poll was taken on June 2019 and show that over 63% of Illinoisans are considering leaving Illinois
- The new poll was taken by NPR Illinois and the University of Illinois, Springfield
- Results from the poll suggest that Illinois is in a financial crisis
- With the tax increases by Governor JB Pritzker and the new taxes he is creating, the state is about to undergo another financial meltdown if they lose taxpayers
- The main reason Illinoisans are fleeing the state was high taxes
- Over 37% of taxpayers are leaving due to high taxes
- 17% of the residents left Illinois due to issues with Illinois state government and its policies
The third reason why Illinoisans leave the state was due to harsh winters. This contributed to 15%.
Illinois Versus Other Profitable States
Illinois has the second-highest property taxes in the nation.
- Illinois is right behind New Jersey when it comes to property tax rates
- Due to the $241 billion in pension debt, most homeowners in Illinois will likely see property tax increases again
- By mid-2020, Illinois is expected to surpass New Jersey as having the highest property tax rate in the U.S.
- While Illinois is on the verge of bankruptcy, states like Florida, Tennessee, Texas, Alabama, Ohio, Georgia, Colorado is booming and raking in billions of revenue
- Countless Illinoisans are fleeing to lower-taxed states
The main reason why Illinois is broke and on the verge of bankruptcy is because of the governor and its lawmakers. They are spending more than they are taking in.
Incompetent Politicians In Illinois
It seems Illinois is having a rather difficult time in electing qualified politicians.
- There are more public corruption investigations and convictions in Illinois than any other state
- Politicians still have not learned their lessons
- It is not how much you make but what you spend
- Newly elected Illinois Governor JB Pritzker believes he is doing a phenomenal job and he also thinks he is a great leader because he has a solution in fixing the financial crisis in the state
- What is his solution?
- Raising taxes and creating new taxes
- Pritzker recently doubled the state’s gas tax along with all other taxes including the state’s income tax
- Pritzker has also approved raises for all Illinois state lawmakers while the state is on the verge of bankruptcy
- JB Pritzker is also planning on replacing the state’s flat tax with his new progressive tax
- The progressive state income tax will penalize the wealthy
This news is creating serious controversy in the state. A large percentage of the voters are starting recall proceedings against the very unpopular newly elected governor, JB Pritzker.
The New Illinois Governor
The newly elected Illinois Governor JB Pritzker seems to be off with a wrong start. He did not waste any time raising taxes. Besides raising existing taxes, he is creating new taxes. He recently approved the gas tax bill which doubled the current Illinois gas tax. Raising taxes is tactic politicians use to increase revenue. However, in order for tax hikes to work is by cutting spending. Spending is increasing and so is tax in Illinois. Pritzker recently approved wage increases for Illinois lawmakers. Other states like Florida are thriving in raking in billions in revenues. Florida has no state income taxes. Property taxes are among the lowest in the nation. Countless businesses and residents are migrating to Florida from high-taxed states like Illinois and New York
Mike Gracz, the national sales manager at Gustan Cho Associates said the following:
The Illinois Issues sent a warning for Gov. J.B. Pritzker and his push to eliminate the Illinois Constitution’s flat income tax protection: Respondents reporting a household income of more than $100,000 a year (68%) are nearly ten percentage points higher than other income groups to say they’ve considered moving out of the state, with those reporting a household income lower than $45,000 (58%) being least likely. In other words, those most able to afford a move and who stand to lose the most are much more likely to leave than those who can least afford to do so, according to the poll. If state taxes are the top reason to move, more state taxes would likely be even more of a reason to move. Despite Pritzker’s rhetoric about a “fair tax” that just asks “the rich” to pay more, another recent poll showed Illinoisans don’t trust Springfield politicians to limit higher taxes to high-income groups. The poll by Ideas Illinois in June showed nearly half of those polled saw a progressive state income tax as “just a blank check for Springfield politicians to spend more and will hurt Illinois’ economy and force businesses to leave the state.
The majority of Illinois politicians have no interest in cutting spending. Most of them are in agreement to spend more money. Lawmakers recently drafted and approved 21 new tax and fee hikes. This includes doubling the gas tax to fund the $50 billion annual state budget and fund the $45 billion infrastructure plan that has been delayed for years.
Pritzker’s Progressive Income Tax Plan
JB Pritzker is hung ho with restructuring Illinois’ flat tax to his new Progressive Income Tax Plan. Experts are warning the new governor that the newly proposed progressive state income will devastate Illinois. Experts believe Pritzker’s Progressive Tax Plan will force a large percentage of wealthy Illinois taxpayers to flee Illinois to other lower-taxed states. Pritzker disagrees. JB Pritzker thinks that Illinois has too much to offer for taxpayers to flee. He is dead wrong. I feel he is playing Russian Roulette by doing so. The new progressive tax will penalize wealthier taxpayers while rewarding those with low income. Pritzker estimates the new progressive tax plan will bring in an additional $3.4 billion. He added an additional $10 billion in spending which he feels confident can be paid with the new progressive tax. Experts and economists strongly believe that Pritzker’s progressive tax will fall over $2 billion short from his $3.4 billion estimates. Gustan Cho Associates Mortgage News will keep our viewers updated on this developing story.