This ARTICLE On Leaving Illinois To Lower Taxed States And Low Cost Of Living Was PUBLISHED On October 25th, 2019
Leaving Illinois to save on taxes and high cost of living?
- Many Illinoisans gave up on the constant tax increases
- Illinois has the second-highest property tax rate in the nation right below New Jersey
- The newly elected Illinois Democratic governor, J.B. Pritzker, seems totally clueless and lost
- The only solution J.B. Pritzker has in solving the state’s problem is raising taxes
- Pritzker recently approved doubling the state’s gas tax
- The doubling of the state’s gas tax has gas station owners along the borders of Illinois financially strapped
- Many gas station owners in the Illinois/Wisconsin border, Indiana/Illinois border, Missouri/Illinois border, and other state borders cannot compete with out of state gas stations with the high Illinois gas tax
- Many are so fed up with J.B. Pritzker that they are spreading petitions for signatures to recall him
- Pritzker recently approved wage increases to state lawmakers when the state is broke
- Pritzker is planning on changing the current Illinois flat-tax to a progressive tax system angering high-income wage earners
- Countless businesses and residents are leaving Illinois due to high taxes
- Illinois is ranked as the highest tax state in the nation
In this article, we will cover and discuss Businesses and Taxpayers Leaving Illinois To Lower Taxed States And Low Cost Of Living
Illinois Tax Burden Is Getting Worse With No Light At The End Of The Tunnel
The U.S. economy is on fire.
- The unemployment numbers have been the lowest in 50 years
- The Dow Jones Industrial Average is setting historical highs every week
- There are more job positions than workers available
- Many states like Florida, Tennessee, Kentucky, Indiana, Wisconsin, Mississippi, Alabama, Georgia, Texas are raking in billions and attracting new businesses and taxpayers
- However, Illinois is hurting financially that many businesses and taxpayers are leaving Illinois
- Illinois pension debt exceeds $241 billion with no signs of a fix
- Pritzker keeps on increasing taxes and creating new taxes is forcing Illinoisans to flee the state
- Many government workers who retire from Illinois government jobs flee the state with their big pensions hurting the economy of Illinois even more
High property taxes, state income taxes, sales taxes and high cost of living in Illinois are forcing businesses and individual taxpayers to leave Illinois.
The Exodus Of Illinoisans
Illinois will never come to grips with their finances without pension reform.
- The pension debt in Illinois is beyond fixing
- All the tax increases in the world would not fix the pension debt
- Peoria Illinois creates a new property tax fee fund to cover the police and fire pension shortage
- Kankakee Illinois pension debt deadline is missed by the city
- Police and fire departments cannot hire any new police officers and/or firefighters because they need to keep up with paying retired employees
- It is like a Ponzi scheme
- Over 70% of pension recipients are leaving Illinois to other lower-taxed states
- Many pension recipients are furious their pensions are being taxed in Illinois
- Illinois created a law where pension recipients will get taxed if they leave the state
- Illinois is losing businesses and individual taxpayers by the thousands
- Over 65% of Illinoisans thought about leaving Illinois in a recent survey
- This figure was an increase from 58% of Illinoisans who thought of leaving Illinois on a survey taken in 2017
The Pritzker Administration and state lawmakers need to think twice about raising taxes and implementing new taxes.
Taxpayers should compare tax rates by state. Data suggests that Illinois ranks as one of the highest taxed states in the U.S. High property taxes and sales taxes are the two drivers forcing taxpayers leaving Illinois. Many Illinoisans who live on the border of another low taxed state like Indiana, cross the border to purchase cigarettes, alcohol, and fuel.
Massimo Ressa of Gustan Cho Associates said the following:
The Hoosier state charges a lower income tax rate than Illinois, but there’s a catch. Each county has its own income tax rate. Put the two together, and the difference is reduced or, in the case of Lake County, Indiana, almost eliminated. Illinois has no county income taxes. Moving to Indiana probably gets you savings in property and sales taxes, but if you’re still working in Chicago or the suburbs and have bought yourself a longer commute, is it worth it? For most wage earners, the Illinois flat-tax rate of 4.95 percent compares favorably with the sliding scales in Wisconsin and Iowa, two states that also had least tax-friendly. The website noted that many Wisconsin residents are in the 6.27 percent tax bracket. This isn’t an argument against the proposed graduated income tax in Illinois — it’s something most states already have. It’s just a reminder that the Legislature must yet decide who pays.
What Experts Say On Leaving Illinois
Michael Gracz of Gustan Cho Associates Mortgage News says the following:
But there’s one group for which these scenarios are radically different. It’s retirees, the most protected class of taxpayers under Illinois law. Of the states that charge an income tax, only three don’t touch retirement income from pensions, 401(k)s, IRAs and Social Security. They are Mississippi, Tennessee and old high-tax Illinois, which from that perspective looks like a Midwestern haven for pensioners who don’t mind winter. It’s a big-ticket item. An analysis by the state comptroller’s office said the retirement income exclusion cost Illinois $2.3 billion in fiscal 2015. Groups of various leanings such as the Civic Federation, the Civic Committee of the Commercial Club, and the Center for Tax and Budget Accountability have called for retirement income to be taxed. Their board leaders and staff, however, don’t have to stand before the electorate. I suspect Gov. J.B. Pritzker knows if he goes for a retirement tax, all his wealth won’t save his political career. His larger worry is getting voters to approve the graduated income tax amendment next year, buying into lawmakers’ promises that it will fall mostly on wealthy people and reduce taxes for many others. Some will wonder if they can believe promises from the same political class that caused the fiscal problems by shorting public pensions. The vote takes place on November 2020, by which time people could be in a surly mood. In Chicago, Mayor Lori Lightfoot will have little choice but to patch together a property tax hike, other revenue increases, borrowing, cuts, and some razzle-dazzle to close a projected deficit of more than $800 million. And that’s alongside potential teachers strike. On the state level, the slow-motion financial mash-up will get worse once it becomes obvious that revenue from marijuana sales and the gambling expansion will be long in coming and less than expected.
Illinois Housing Market
The Illinois Housing Market is good for homebuyers but not good for home sellers. Home values in Illinois have not appreciated like other lower-taxed states. In general, home values are lower in higher taxed states like Illinois. For example, DuPage County Home Values dropped 24% while taxes went up 7% since the 2008 Great Recession. This can be a great buying opportunity for home buyers. DuPage County is a great suburb of Chicago with attractive homes and neighborhoods. Unfortunately, many DuPage County area homeowners feel like they got cheated out of equity in their homes due to the state’s financial crisis.