Off to AZ

A comment under this article from two weeks ago:

One problem here, Evert.

To effectively compare “tax rates” between states, you need to also include unfunded pension liabilities, state and local debt because they will eventually need to pay those off with tax increases.

If Illinois was current and be debt free with that tax rate, it would be OK.

They’re not.

Eventually taxpayers in Illinois (only about half of wage earners actually pay income tax there in Illinois)

One of the reasons that taxpayers are leaving is that they’re smart enough to know that corrupt Illinois government will not change its ways and the government patronage, entitlement, and crony capitalist community that runs Illinois will put the full burden on the few remaining taxpayers and businesses.

That’s why I left Illinois two years ago for Arizona and why I’ve been selling all my Illinois real estate before the fiscal monsoon hits….


Off to AZ — 3 Comments

  1. @Bob: You’re confusing “tax rate”, which is the percentage at which we currently pay on whatever’s being taxed with “tax burden”, which is the sum of all the state’s obligations as a percentage of the gross state product.

    Illinois’ tax burden is indeed crushing, and will only go down through economic growth, not by raising rates.

    Tax reform is necessary, and the mix of goods and services upon which we pay tax must reflect our current economy, which is no longer based on manufacturing.

    The aim of true tax reform is to increase the gross state product by increasing economic activity, not by increasing the burden on those who now pay most of the bills.

    We have to grow the economic pie, otherwise we’ll never climb out of the hole we’re in.

    Too many people assume that our economy is a zero sum game, they don’t look at economic growth as a factor in the equation, when it’s the most important factor of all.

  2. Any way you look at it, Illinois will not recover in our lifetime.

    So why stay and feed the beast that intends to destroy you ?

    Join the exodus, or be crushed by corruption.

  3. 2/3 of Illinois businesses pay no taxes to state.

    If we want fairness everyone should pay state taxes.

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