Illinois Exodus Of Taxpayers To Other States Due To High Taxes
This ARTICLE Is About Illinois Exodus Of Taxpayers To Other States Due To High Taxes
The U.S. economy is booming since President Donald J. Trump took office. Historical economic numbers are being posted every week.
- Never in history has the U.S. economy had such great economic numbers
- The country has been riding on a bull market for the past 11 years
- Fears of a recession and/or inflation are next to non-existent
- The Dow Jones Industrial Averages are hitting record highs every day
- Home sales and the housing market is hot with no signs of any correction
- Mortgage rates are at its low since the 2008 Great Recession
- Unemployment numbers just released a few weeks ago are at 3.5% which is at its lowest levels since 1969
- We have the lowest unemployment numbers in 50 years
- States like Florida, Tennessee, Alabama, Texas, Georgia, Kentucky, and countless others are raking in billions with new businesses and taxpayers migrating to those states
- However, not every state is enjoying the fruits of the biggest bull market in history
- States like Illinois and New York are in big financial trouble
- The main reason for the Illinois Exodus of taxpayers is due to high taxes
In this article, we will cover and discuss Illinois Exodus Of Taxpayers To Other States Due To High Taxes.
Talk Of Illinois Exodus Of Homeowners
Illinois has the second-highest property taxes in the nation.
- New Jersey is in first place with having the highest property tax rates
- Homeowners are uncertain as to how much higher their property taxes will go up
- There are no property tax caps in Illinois
- Politicians always resort to raising property taxes in the event they have a budget deficit
- For example, Chicago Mayor Lori Lightfoot settled the Chicago Teachers Union strike with a settlement
- That settlement was made with money Chicago did not have
Experts say Illinois should surpass as the highest property tax state in the nation by late 2020.
All Illinois Politicians Seem To Know Is Increasing Taxes
The cost of the settlement is going to cost Chicago taxpayers $100 million per year.
- Where is this money going to come from? Chicago property tax hikes
- Lightfoot is planning on increasing property taxes effective immediately to fund the CTU strike settlement
- Governor J.B. Pritzker increased all state taxes including doubling the gas tax in Illinois
- Pritzker is clueless and lost and does not seem to know anything about running an organization especially state government
- He is planning on replacing the state’s flat tax with a progressive tax system
- He thinks this will solve the state’s deficit. Experts say that by changing the state’s flat tax system to a progressive system, Illinois exodus of wealthy taxpayers will be happening
- Political corruption is another major problem Illinois has been facing for decades
- Political corruption adds waste and cost taxpayers billions of dollars
- Illinois has the highest arrests, investigations, and convictions of politicians than any other state in the nation
While states like Florida and other states with competent leaders are thriving, Illinois is hurting.
Politicians Trying Hard To Avoid Illinois Exodus
All states have businesses and taxpayers leaving and new businesses and residents moving to their state.
- However, Illinois has more businesses and taxpayers leaving the state than any other state in the nation
- However, in the past few years, more businesses and individual taxpayers have been leaving the state
- Chicago is in major trouble because many businesses and city taxpayers are leaving the city than ever before
- Chicago has the highest tax rate out of any large metropolitan city in the U.S. Everything costs more in Chicago
- The city has mandatory auto city stickers, city taxes, city sales taxes, city income taxes, city transfer stamps, and other taxes
- With all of these extra taxes, the city is in worse shape every year
- For example, Midland Metal Products recently moved out of Chicago to Indiana due to the high city and state taxes
- The company has been in Chicago for the past 98 years. 150 plus jobs were affected by this move
We are seeing more of Illinois’s exodus of businesses and residents. The number seems to be increasing as time passes.
Net Population Losses
There are more businesses contemplating leaving Illinois today than ever before.
- Many thriving states have national campaigns to attract new businesses and individual taxpayers to their state
- Having the highest tax rate in the country and creating new taxes is not a way to attract new businesses and residents
- Illinois has a major net loss every year in its population
- The reason the net loss has been increasing exponentially due to the reduction from international migration and new births
- The state’s population has started to fall greatly starting in 2014
- Governor J.B. Pritzker and Illinois politicians do not seem too alarmed about the Illinois exodus of businesses and taxpayers
Pritzker and his allies think the name recognition of Chicago and Illinois will greatly attract new businesses and residents without the need to recruit or promote. Oh Boy is he wrong?
Illinois Exodus Versus Other Midwestern Neighboring States
All of the neighboring states to Illinois have seen population growth.
- Wisconsin is a higher taxed state
- Property tax rates in Wisconsin is ranked as the nation’s fourth-highest
- However, Wisconsin is in great solid financial shape because the state has no near the corruption Illinois has. Indiana is thriving
- Many Illinoisans are fleeing to Indiana due to lower tax rates and low cost of living
- Illinois property tax rates are three-time those of Indiana
- Many Illinoisans are relocating to Tennessee due to its no state income tax laws and a strong economy
- Kentucky is luring Illinoisans by putting up billboards on I-57
Again, the tax rate in Kentucky is a fraction of those in Illinois. Other midwestern states Illinoisans are fleeing to are Michigan, Ohio, Iowa, and Missouri.
Historical Illinois Exodus Of Taxpayers Moving In Versus Moving Out
Historically, more people were moving out than moving out.
- The population count of residents moving in versus out is called net migration
- However, the net migration has been getting worse recently due to not just high taxes, but consistently rising taxes and new taxes being created
- Another factor in the budget disaster in both the City of Chicago and the state of Illinois is the history of corruption in Illinois
- The state has sent four governors to federal prison
- The current governor, J.B. Pritzker, is currently under federal investigation due to property tax appeals fraud
- According to data by the U.S. Census Bureau, last year, Illinois had a reduction of 6.5 taxpayers for every 1,000
- In 2013, the net migration data was 3 people moved out per 1,000 Illinoisans
Data by the U.S. Census places the state of Illinois in 49th position on net migration decline on population. The highest exodus of taxpayers in the U.S. is the state of Alaska. Alaska had a net loss of 11 residents per 1,000 and ranks as the top state in net migration loss in the U.S.
Illinois Versus Neighboring States With Net Migration Numbers
There is no doubt that many Illinoisans are fleeing the state to lower-taxed states and low cost of living. Indiana is one of the states where Illinoisans are fleeing to. Indiana property taxes are a third of Illinois’. Other taxes in Indiana are much lower than Illinois.
Look at the chart below and compare Illinois to Indiana, Wisconsin, Missouri, and Michigan:
Mike Gracz of Gustan Cho Associates Mortgage News said the following:
Interestingly, if you look only at the rate of people leaving one state for another, Illinois doesn’t particularly stand out. Illinois ranked No. 21 — near the middle of the pack — on the rate of domestic out-migration in 2017, the most recent year for which those estimates are available. Where Illinois really lags, the data shows is in attracting new residents. In 2017, Illinois’ rate of in-migration was third-to-last nationally, even when factoring in people who moved to Illinois from other countries. Census data shows that since 2013, in-migration has been decreasing in Illinois with out-migration mostly rising. In 2017, an estimated 266,000 people reported they had moved to Illinois in the last year, which is 9% fewer than the 292,000 estimated arrivals in 2013. The number of people who arrived from other states rather than from abroad declined even more steeply, from more than 223,000 to about 195,000.
More Illinoisans are fleeing the state of Illinois than moving in. See the chart below:
What Other Factors Contribute With Illinois Exodus And Net Loss Of Population
Illinois exodus of taxpayers along with declining birth rates and aging population is contributing to the loss of population in the state.
- The decline in the population started in 2014
- In 2014, the population in Illinois started to decline for the very first time in 20 plus years
- The state has been experienced a net population decline since then
Illinois now has 100,000 fewer residents than it did.
Statistics And Data Of Illinois Exodus Of Residents And Loss Of Population
Michael Gracz of Gustan Cho Associates said the following about Illinois exodus of residents:
The decline in population declines is more serious in more parts of the state. From 1990 to 2000, 68 of Illinois’ 102 counties gained population. But so far this decade, only nine counties, including Kane, Will and DuPage in the Chicago area, have added residents. Of about 339,000 people who reported moving from Illinois to another state in 2017 — roughly 3% of the state’s population — most had been living in Cook County or one of its suburban counties. That makes sense, given that these areas are more populous than other parts of the state.
The number one reason for Illinois’s exodus of taxpayers is high property taxes, high sales taxes, and high cost of living in Illinois.
Counties With Highest Illinois Exodus Of Taxpayers
Illinois exodus of taxpayers to other states seem to be more in certain counties than others:
Mike Gracz said the following:
Along the Mississippi River in western Illinois, Hancock County had a loss of about 47 people per 1,000 residents, one of the highest rates in the state, according to the latest census estimates. Other counties with high loss rates include Jackson County, which is home to Carbondale, and Jersey County, north of St. Louis. Cook County, by comparison, had an estimated 26 people per 1,000 residents leave the state. Looking at the demographics of people who moved out of state from the Chicago area — Cook, DuPage, Kane, Lake, McHenry and Will counties — it found the income and racial breakdowns for this group generally mirrored the patterns of the overall population in the area. Most of the movers made $50,000 or less in income, and most were white non-Hispanic, according to census survey data collected from 2013 to 2017. Those who left the area were more likely to be young; the largest group, 28%, were in their 20s when they moved away. Census data shows that people of this age have the highest moving rate nationally. People moving from the region to neighboring states tended to earn a bit less and have fewer years of schooling than those who moved farther away, the data shows. Those moving to non-neighboring states also skewed a bit older. Of the black residents who moved out of Cook County, 85% stayed in Illinois, compared with 77% of white residents leaving Cook.
The loss of residents should be a major concern to lawmakers. You can raise as many taxes in the world, but what good is it if you cannot collect due to taxpayers leaving the state.
Denial Of Illinois Exodus By Politicians
Any major chief executive, whether private and/or government, should be concerned with its customer base and attracting new business.
- If you compare running Illinois as running a large company, wouldn’t you be concerned about losing taxpayers and businesses?
- Governor J.B. Pritzker and other Illinois politicians seem not too concerned
- Raising taxes, increasing taxes, and having one of the top tax rates in the nation does not attract new businesses and/or taxpayers
- It seems Illinois political leaders are in a state of denial and not too concerned
- They are too busy raising taxes and creating taxes
- Actually, it is beginning to backfire on them
- More businesses and individual taxpayers are fleeing the state than ever before
I do not think Pritzker has no intention of cutting spending drastically. He recently gave a pay raise to all Illinois lawmakers when the state is in a financial crisis.
Final Destination Of Illinoisans
The Illinois exodus is for real folks. Businesses and individual residents are fleeing Illinois in record numbers. Indiana and Wisconsin are bordering states to Illinois and are common states where Illinoisans are calling their new home. In 2017, 9% of Illinoisans fleeing moved to Indiana. Other popular states Illinoisans are fleeing to are the following:
- North Carolina
Below is a chart and graph where people moved from Illinois between 2016 and 2017:
Many Illinoisans moving to Northwest Indiana are young folks with younger children and empty nesters. You get a lot of house for the money in Indiana versus Illinois. Property tax rates are a third of what it is in Illinois. Income taxes are substantially lower. All other taxes are much lower than Illinois so why would you not want to move to Indiana from Illinois. Illinois politicians really need to wake up and see how serious the Illinois exodus is. This is a developing story on Gustan Cho Associates Mortgage News. We will keep our viewers updated in the coming days and/or weeks as this story develops. Stay tuned!!!