Illinois Raising Property Taxes To Fix $241B Pension Debt
This ARTICLE On Illinois Raising Property Taxes To Fix $241B Pension Debt Was PUBLISHED On September 27th, 2019
There are more taxpayers fleeing Illinois than other lower-taxed states due to high property taxes and higher cost of living.
- A recent report revealed that the pension debt in Illinois now remains the highest in the United States
- This holds true despite the state’s income tax hikes
- Illinois has passed a historic record income tax hike in 2017
- Despite the record income tax hike in 2017, the state’s pension debt still remains the worst in the nation
- The pension debt did not make a dent with not just with the income tax hike but also record hikes in property taxes
- Major credit agencies have downgraded Illinois’ credit rating to the lowest grade possible
In this article, we will cover Illinois Raising Property Taxes To Fix $241B Pension Debt and the financial crisis Illinois taxpayers and homeowners are facing.
The Election Of Illinois Governor JB Pritzker
Illinoisans thought with the election of a new governor, JB Pritzker, the state was going to resolve its financial crisis.
- Many voters have voter’s remorse by voting JB Pritzker, a billionaire new political newcomer, to be Illinois’ Chief Executive
- Turns out JB Pritzker is clueless in running Illinois
- His only solution in solving the financial crisis in Illinois is raising taxes
- Anything he can think of, he raises taxes
- He recently doubled Illinois gas tax
- To make things worse, Pritzker has no plans in reducing spending
- Actually, he plans on increasing spending. He recently approved pay raises to Illinois lawmakers
- Many of Pritzker’s policies are forcing many Illinoisans to flee the state in droves
There is no other state than Illinois where residents are leaving the state to lower-taxed states.
Illinois Financial Crisis
Illinois is a great state and a great place to live.
- Chicago is the second-largest city and boasts as one of the world’s most beautiful cities
- Chicago is the home of the Sears Tower, The John Hancock Building, and Standard Oil Buildings
- Chicago has world-renowned colleges and universities
- Northwestern, the University of Chicago, DePaul, Loyola, and the University of Illinois are all located in Chicago
- Chicago is one of the highest-taxed cities in the nation and is financially strapped and on the verge of bankruptcy
- However, Illinois is in trouble. Illinois is becoming the highest taxed state in the nation
Property taxes in Illinois is second to New Jersey but many experts think Illinois will surpass New Jersey as the state with the highest property taxes.
Illinois Pension Liability And Crisis
A new report that was released from Moody’s Investors Service state that Illinois unfunded pension debt at $241 billion.
- This amounts a liability of $18,896 for each Illinois taxpayer just for the pension debt
- The pension liability has been increasing double-digit every year since 2011
- There is no way that the debt will get resolved with raising hefty taxes on everything possible
- Hiking property taxes to record levels did not make a dent in paying down the pension debt
Check the graph below:
Massimo Ressa, the Chief Executive Officer at Gustan Cho Associates at Loan Cabin Inc. is a lifelong Illinois resident and expert in government affairs. Massimo said the following:
The size of Illinois’ pension debt amounts to more than 500% of state revenues, according to Moody’s, and nearly 30% of the state economy. That’s considerably higher than Kentucky’s 309% pension debt-to-revenue ratio, the nation’s second-worst, according to Moody’s. In line with the nationwide trend, Illinois’ $241 billion pension burden represented a slight decrease from $250 billion in the fiscal year 2017, which Moody’s attributes to healthy investment returns. But the agency expects that to reverse, citing expectations for lower investment returns and interest rates going forward. Pension liabilities are on pace to rise by 20% nationwide in fiscal year 2020, according to Moody’s.
Illinois Versus Other Low-Taxed States
Florida is ranking in billions in tax revenue by its booming economy. What are states like Florida, Texas, Kentucky, Tennessee, Georgia, Alabama, Mississippi, Ohio, Michigan, Colorado booming and Illinois on the brink of bankruptcy?
- Florida has a huge surplus. The state has no state income taxes
- Cost of living is very low due to low sales and property taxes
- More and more taxpayers from budget-strapped states like Illinois and New York are relocating to lower-taxed states like Florida
- Illinois state lawmakers and Governor Pritzker needs to realize that raising taxes will backfire on them by depressing the state economy
This includes Governor Pritzker’s progressive tax proposal.
Is JB Pritzker Competent To Lead Illinois?
There are more and more Illinois taxpayers who are not pleased with Pritzker’s leadership. Many think he is clueless and incompetent and will railroad Illinois into bankruptcy before his term is over. Many believe the state is in major trouble due to incompetent politicians who do not know that it is not how much you make but what you spend. This is a developing story. GCA Mortgage News will keep our viewers posted as developments arise.