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Thread: State Income Tax Increase

  1. #31
    Forum All Star middlein87's Avatar
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    Quote Originally Posted by paul kuhn View Post
    Checked on Zillow and a quick glance confirms that, home prices there seem pretty comparable to GE.
    I'm not clued into the Ann Arbor areas, but I'd say that home prices are pretty comparable in the Detroit suburbs that Glen Ellynites would be interested in. The taxes, however, are much lower.

  2. #32
    Pauls comment just struck a cord with me as I hear so much about leaving Illinois to avoid taxes and I don't think it's that easy. There are a lot of cost of living and personal value decisions that make it difficult to realize savings if you compare apples to apples. Saving a hundred or two or 3 a month isn't much if utilities, auto/health/property insurance, food, etc., plus the intangibles like access to excellent medical care (always impressed by Chicagoland medical care), road maintenance and real estate development planning, quality schools, etc. add up to more $. I just don't think there is a free lunch out there. Downsizing your residence and moving to an area with fewer services works but is not a fair comparison as justification why the Chicago suburbs are is so expensive. Which is not to say IL does not have a horrible debt problem but at least it's not Kansas- Brownback cut taxes, blew the budget surplus, sank the state into debt and it's not like Kansas is an economic engine of the country, which IL is. Thats gotta hurt. IL just has to figure out who is going to ante up the tax money because you can't do it by more cuts to spending and borrowing alone.

  3. #33
    I agree to a certain extent. Taxes may play a role, maybe not a large one but they do count. When you're looking for a house one thing you have to notice is the the total cost of owning one and taxes have come into play there especially in a state like Illinois where property taxes are a major factor in home ownership. It's very possible to end up paying more in property taxes than what you originally paid for in a house.

    People like to bring up Kansas as an example of what happens when you lower taxes but Kansas has seen its population increase a small increase but better than Illinois continued five years of decline. Illinois despite years of increasing taxes has 15B in unpaid bills along with a 135B of unfunded pension liabilities. So its not as if Illinois tax increases have done the state a lot of good. I don't if you can truly consider Illinois an economic engine of this country. Chicago home prices really haven't kept pace with the national average. Look at recent Case-Shiller reports for further proof. Chicago suburbs are certainly less expensive than California and New Jersey.

    Property values tend to follow economic improvement, demographics and job creation. Illinois seems to be lagging in all three. I agree that a few hundred a month may not be worth but when you start looking at thousands then the equations change.

    But several high tax states Illinois, New Jersey, New York are slowing down while low tax states like Texas and Florida are showing gains.

  4. #34
    The country economically lives off of the GDPs of about 5 states Illinois being the 5th largest economy. Actually the size of Saudi Arabia I think. Plenty of $ in IL, just a matter of who pays taxes.

    A couple observations- Many areas people are moving for low taxes are now struggling to provide the services demanded by the new residents (e.g. Austin, other Texas urban areas). It's fluid and something to consider when moving to the "low tax" area of the country. Same thing happened in DuPage and Kane as they urbanized- taxes go up.

    Climate change is already causing population shifts largely some income levels of population beginning to move north out of bad climates areas/high homeowners insurance. Heck NE IL is is predicted to have a climate similar to St Louis within 10-20 years- lots of 90s. While the NC coast may be the fastest growing area of the country I think that area and much of the south is a game of musical chair real estate. Someone's eventually getting stuck with big losses in property value. Sort of like "I know it's in a floodplain but it won't flood while I own it'"

    Whether a states pop is going up or down is a good or bad thing can depend on whos moving in or out- losing unemployed or population from dying rural ag areas (see most midwest states) is not necessarily a bad thing economically.

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