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Thread: State Income Tax Increase

  1. #16
    Forum All Star jombl's Avatar
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    ... budget plans Pritzker unveiled over the last two weeks provoked warnings of potential credit deterioration from two rating agencies if they are adopted.

    Fitch Ratings said in a news release Tuesday that the plan Pritzker presented last week "would not materially address the state's structural budget issues in the current fiscal year or the next." The warning comes four days after S&P Global Ratings panned the new Democratic governor's spending plan


    The funny thing about the coming wave of taxes is that it changes nothing. No path to solvency, just more spending and still more debt.
    Last edited by jombl; 03-12-2019 at 03:46 PM.

  2. #17
    Pretty much correct. There is even some analysis that says this won't bring in the 3.4B that Bahama Pritzker says it will. It could be anywhere from 1B to 1.4B off. In the meantime the state will have to sink deeper into debt because it's revenue don't match its spending. And now the pensions won't be funded until 2052 under Pritzker's plan.

    They are taking enormous risks with the fiscal and economic future of Illinois. Betting that by not increasing taxes now and not limiting spending they can in two years pass an amendment to the Illinois Constitution to allow them to raise the income tax rate on anyone . If you don't think that is part of their plan I have some Bitcoins I want to sell you .

    But this has been going on for twenty years or more now. And the people who do it keep on getting re-elected so you can't argue with success.

    This is what happens when you're in debt. Whether you are an individual , a corporation or a state. It becomes extremely hard to get yourself out of debt. And Illinois politicians aren't interested in doing anything hard. So Illinois will just go deeper into debt and the politicians who got us there will keep on getting re-elected.

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    https://www.investors.com/politics/e...ch-high-taxes/

    Surprise, wealthy New Yorkers don’t like being over taxed and are leaving in droves. Nothing would increase the IL exodus faster than more tax hikes. Watch... it’s gonna happen. Nobody will be left to pay the tax, sound like what’s happening in IL?

  4. #19
    Quote Originally Posted by Grateful View Post
    https://www.investors.com/politics/e...ch-high-taxes/

    Surprise, wealthy New Yorkers don’t like being over taxed and are leaving in droves. Nothing would increase the IL exodus faster than more tax hikes. Watch... it’s gonna happen. Nobody will be left to pay the tax, sound like what’s happening in IL?

    I've had my doubts about how responsive people are to taxes when moving or choosing where to live. The range for median income filers from highest state New York, is 12.7 and the lowest is Alaska at 6.5, so for middle income people it's about three thousand per year or less. I don't know if that is enough to justify moving but maybe if you're at the higher end and you're talking twenty, thirty thousand a year then maybe moving makes sense. It certainly looks like a lot high tax states are losing people while lower tax ones are gaining population.

  5. #20
    Forum All Star Yossarian's Avatar
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    We are already planning on leaving Illinois when we retire in a couple of years. Weather and taxes are the primary reasons.

  6. #21
    Since Illinois doesn't tax retirement pay sticking around during retirement may make some sense. The ideal time to leave is either when you graduate from college or before you hit your peak earning years.

    While Warren Buffet didn't mention Illinois by name there is an interview out there where he says that he would not consider starting a business or opening a factory in states which have large unfunded pension obligations .

  7. #22
    Quote Originally Posted by paul kuhn View Post
    I've had my doubts about how responsive people are to taxes when moving or choosing where to live. The range for median income filers from highest state New York, is 12.7 and the lowest is Alaska at 6.5, so for middle income people it's about three thousand per year or less. I don't know if that is enough to justify moving but maybe if you're at the higher end and you're talking twenty, thirty thousand a year then maybe moving makes sense. It certainly looks like a lot high tax states are losing people while lower tax ones are gaining population.
    I suspect taxes aren't a major motivator either though many may say it is- really it's downsizing that saves you the $ and perhaps accepting lower levels of public services. We left Glen Ellyn several year ago and bought a hobby farm in Michigan mainly because family is here. Sure way cheaper but if I took the nice house I had in GE and found a comparable in an Ann Arbor or Detroit suburb I don't think I would save any $. But then MI is also a high tax/cost of living state. Really you have to look at regions within states to even get a clue on cost of living and then you have to compare it to your needs. Services cost $ wherever you go. For us the south was out- can't deal with the heat and storms.

  8. #23
    Forum Hall of Famer DTM's Avatar
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    When you can buy a much nicer house in an urban area out side of Illinois for the same mortgage + property tax monthly payment that certainly is a motivating factor...

  9. #24
    I think it's a factor, maybe not the largest factor but it does come into play. I think people are probably less likely to come to Illinois, because they know our tax situation isn't good. And when they start looking at houses, and see how high property taxes are here, that probably scares them away. Our home prices aren't that bad, not in the league of California and New Jersey but property taxes here probably keep people away. Plus if you're from here you tend to notice the difference in property taxes. And that may influence your decision to leave. You could end up paying more in property taxes than you originally paid for the house.

    And you have to know that Illinois is in such bad fiscal shape those taxes aren't going to go down.

    I'd think that you could find something a lot nicer and cheaper outside of Detroit or Ann Arbor than you could here.

  10. #25
    Forum All Star GE Fan's Avatar
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    But then you’re living in Detroit or Ann Arbor...and that’s not good.

  11. #26
    Ann Arbor wouldn't be bad. Not so sure about Detroit, though it seems to have slightly improved over the last couple of years. Or, at the very least it has stopped getting worse.

  12. #27
    Administrator Clamato's Avatar
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    Quote Originally Posted by Grateful View Post
    https://www.investors.com/politics/e...ch-high-taxes/

    Surprise, wealthy New Yorkers donít like being over taxed and are leaving in droves. Nothing would increase the IL exodus faster than more tax hikes. Watch... itís gonna happen. Nobody will be left to pay the tax, sound like whatís happening in IL?
    Think of how easy it will be to get into fire + wine. Always look at the positive.

  13. #28
    Forum All Star middlein87's Avatar
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    Quote Originally Posted by GE Fan View Post
    But then youíre living in Detroit or Ann Arbor...and thatís not good.
    Having lived outside Detroit after grad school for about 7 years, I've often wondered what life would've been like had we stayed. To be honest, Detroit suburbs are an awful lot like Chicago suburbs - just fewer of them. So I think it comes down to how much time you actually spend in the City of Chicago. If you don't work downtown and you don't go down there often for a play, museums, musical, lakefront frolicking, etc., then I think you'd be very content with living in the Detroit area. While Chicago has Detroit smoked in just about every "cultural" category, the day-to-day life of a suburbanite will be pretty similar. Just more affordable.

  14. #29
    Quote Originally Posted by paul kuhn View Post
    Ann Arbor wouldn't be bad. Not so sure about Detroit, though it seems to have slightly improved over the last couple of years. Or, at the very least it has stopped getting worse.
    I was offered a job in Ann Arbor a few years ago. There's a housing shortage in Ann Arbor, and consequently the cost of living is quite high. A $500K house in Glen Ellyn would cost at least as much in Ann Arbor, with similar property taxes but inferior public services (the roads are in horrible condition). I turned down the job, even though I wanted to take it, as the salary would have made it a stretch to live in Ann Arbor. Detroit has some affordable suburbs and exurbs, but Ann Arbor is not one of them.

  15. #30
    Checked on Zillow and a quick glance confirms that, home prices there seem pretty comparable to GE.

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