Millionaires Face 60% Income Tax Hike, But Have Two Years’ Notice

Scott Coffey did the math.

Here is his comment:

Millionaires are actually looking at a 60.6% tax increase.

They will be moving from a flat rate of 4.95% of their taxable income to a flat rate of 7.95% of their taxable income.

I am wondering what JB used for the “Millionaire Loss-Rate” assumption in determining State revenues for millionaires that decide to move out of state rather than pay 60.6% more in income taxes.

This instantaneous 60.6% tax increase would seem to violate the “Boiling Frog” metaphor which holds that a frog put into boiling water will immediately jump out, but if the frog is put into warm water that is slowly brought to a boil, it will continue to stay until its death.

With the State’s financial difficulties, I guess JB can’t wait to bring this up to boil slowly.

Millionaires have just been put on notice that they have about a 2 year lead time get their affairs in order before this all passes.

One might wonder how many stick around.


Millionaires Face 60% Income Tax Hike, But Have Two Years’ Notice — 10 Comments

  1. Nothing like ‘throwing in the towel’.

    I was under the impression that the VOTERS had to approve a Constitutional Amendment first.

    Am I wrong?

    Not that I am sure the voters in this state have the required knowledge to vote against the amendment.

    Look at who they voted in to control the State!

    Look at who they voted for to represent us in D.C.

    The Teachers have done their job well.

    They turn out students who are inadequately educated for a job but willingly support Socialism.

    And how many people who read this blog are running for their School Board?

    You get the government you deserve.

  2. I’m guessing outside news comes slowly to the remote jungles of Illinois.

    Cuomo in NY last month first blamed Trump for the $3 B shortfall on his millionaire tax, than the millionaires, than a week later blamed Florida.

    Maybe Dems should lobby D.C. for a State walls, to keep those conniving millionaires in.

  3. You can vote your way into Socialism, but you have to shoot your way out.

  4. Tool at Chicago Tribune shows the impact of Pritzker’s tax increase.

    Check it out.

    Lots of scaremongering going on.

  5. I will be taking my seven figure deferred comp to Florida.

    Do you notice that public employees are barely touched by this Democrat scheme?

  6. Illinois Policy Institute

    Motivated math: Pritzker ‘fair tax’ numbers don’t add up

    by Orphe Divounguy, Chief Economist and Bryce Hill, Research Analyst

    March 11, 2019

    “Illinois Gov. J.B. Pritzker is pushing for the removal of the Illinois Constitution’s flat tax protection in order to install a graduated, or progressive, income tax structure.

    Pritzker claims the progressive tax rates he proposed March 7, which he dubbed the ‘fair tax,’, will generate $3.4 billion in new revenue.

    But Pritzker’s revenue projections overstate by nearly $2 billion the amount a progressive income tax hike would actually bring in.


    Tax changes affect behavior.”

  7. “Charles Nelson”- you wouldn’t face a “millionaire” tax on a “7 figure deferred comp”, unless it’s earning a million dollars in interest annually.

    How many Illinois residents have an earned income of $1M/year?

    Way fewer than California, who taxes them at a higher rate than Illinois’ proposed rate.

    A shame someone as dumb as you has access to that much money in retirement, Charles.

    I imagine you’ll piss it all away on coke and prostitutes- after all, that’s why you’re moving to Florida, isn’t it?

    Cheap drugs and sex slaves?

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