Illinois Tax Burden Is The Least Friendly In The U.S.
This ARTICLE On Illinois Tax Burden Is The Least Friendly In The U.S. Was PUBLISHED On October 13th, 2019
Illinois is making news again.
- According to a new study, Illinois Tax Burden makes the state as the least friendly taxed state in the nation
- The state already made the #2 spot as having the highest property tax in the nation
- Illinois is second to New Jersey as having the highest property taxes
- Illinois’s new governor, JB Pritzker, is not only raising existing taxes but creating new taxes for Illinoisans
- Voters are upset with Pritzker’s tax hikes and no plans in cutting major spending
- Illinois has over a $220 billion deficit while its neighbor Indiana has a $1.7 billion surplus in reserves
- Pritzker’s Progressive Tax Plan is becoming increasingly unpopular among wealthy taxpayers
In this article, we will cover and discuss Illinois Tax Burden and how it affects Illinoians fleeing the state to other lower-taxed states.
Taxes Versus Revenues
Taxes are important because the government needs to be pay expenses for the services it provides its taxpayers.
- However, it is not how much revenues you collect but rather what you spend
- There are many states like Florida, Tennessee, Texas, Georgia, Alabama, Florida that are thriving and raking in billions
- These states that are thriving are normally Republican-led states with little tax and lower cost of living
- These states are attracting countless of businesses and residents from high-taxed states like Illinois
Then you have mega taxed-states like Illinois, New York, California who have among the highest tax rates in the nation that are financially stressed and on the verge of bankruptcy.
Recent Data On Illinois Tax Burden
Many are criticizing JB Pritzker that increasing existing and creating new taxes is not the way of attracting new businesses and residents to Illinois.
- He vehemently disagrees. He feels the great schools, universities, landscape, and other amenities the state has to offer will attract businesses and taxpayers to the state
- Unfortunately, many disagree with JB Pritzker
- What attracts new businesses and taxpayers to a state is low taxes, low cost of living, and a financially strong state government
- Recent studies by Kiplinger, a financial forecasting service, on Oct. 1 released its annual state-by-state tax guide
- Data released by Kiplinger ranks Illinois the worst among the nation’s 10 least tax-friendly states which are states with the highest tax burdens
- Illinois recently doubled its gas tax
- The governor also approved a bill giving state lawmakers pay raises
Homeowners in Illinois pay the second-highest property taxes in the nation. Illinois homeowners pay an average of $2,408 for every $100,000 in home value assessments.
What Experts Say
Illinoisans pay an average of 8.78% in state and local state taxes. Chicago has its own city tax. The average taxes Chicago residents pay is 10.25%. Far more than other Illinoisans due to the added city taxes.
Michael Gracz, the National Sales Manager at Gustan Cho Associates and Illinois monetary policy expert and writer said the following:
Unlike most states, Illinois doesn’t spare its residents sales taxes on food and drug purchases. On top of general sales taxes, Illinoisans on average pay the third-highest combined state and local gasoline tax burden. And while Kiplinger studied 2018 tax rates for the report, state lawmakers in Illinois doubled the state’s gas tax in 2019 – part of the 20 new or increased taxes and fees – meaning this study does not capture the full extent of the pain now felt by Illinois taxpayers. Cellphone users in Illinois also pay the nation’s highest taxes on wireless service, and the state is one of only a few that still imposes an estate tax, commonly referred to as a “death.”
Wisconsin and Iowa were not far behind Illinois as being the least friendly taxed states. Wisconsin came in fourth and Iowa came in ninth.
Pritzker’s Progressive Tax Proposal
JB Pritzker’s solution in solving Illinois financial mess is raising taxes and creating new taxes. He does not seem to have any long term set plan to fix the state’s financial disaster. No matter what types of taxes he increases, the state is not making a dent. Pritzker is lobbying taxpayers and lawmakers preaching how changing the state’s flat tax to the progressive tax system will cure the state’s financial crisis. He has no plans of cutting any major expenses and is actually increasing spending. Experts predict that Pritzker’s incompetent proposals will bankruptcy Illinois. Progressive taxes penalize wealthy high-income earners. There are already countless of families fleeing the state due to high Illinois taxes. What would happen if Pritzker implements the progressive tax system in Illinois? No doubt, wealthy Illinoisans will flee the Land Of Lincoln.