A loaded moving van ready to leave the northern part of Crystal Lake.
Just looking at the headline of this Crain’s Chicago Business article gives a clue as to effect switching from a flat rate to a progressive income tax will have on rich people in Illinois:
South Florida mansion sales surge as tax exiles seek savings
“It’s not just the weather,” says one Bloomington, Ill., executive. “The advantages of the tax code are greatly appreciated . . . right now, we pay a lot of state income tax.”
There is no income tax in Florida.
Also no snow to shovel.
Not just ‘rich’
… ALL productive taxpayers!
This has been done before.
“Progressives” neither read nor know anything about history, economics or sociology.
Many who have money but incomes in Illinois will simply trade residencies with a more tax advantaged state.
It has been long established, however, that the modern American liberal has the education of a Khazakstani goat herder and the intelligence of the goats.
The GDP depletion in Illinois will accelerate spectacularly.
For those of us wishing for the total collapse of the current political regime we applaud the Progressive Tax and support its passage as quickly as feasible.
The problem with the collapse scenario is that it is the pre-planned end game of the Purples (mixt of red&blue; color of royalty).
When Illinois real property collapses in price, who will be loaned the pennies on the dollar to buy it all up as bundles of thousands of defaulted mortgages at invitation-only deal sessions?
I dont see how non Purples will be allowed into those cheap buybacks, until the second round of flips begins ar hugely inflated prices.
Seems overblown.
http://www.taxpolicyissues.com/WhoLeavingIllinois.pdf
Great news!
I’ll just hand over Sitkoski’s, 2nd tier cow college philosophy professor’s scibe, to yesterday’s 42% under 2008 valuation offer.
That should get them up on the price!
James Sitkoski:
I downloaded the report that you recommend.
I finally found the particular KDM consulting that authored this report.
It appears they were in business from 2013 to 2016.
The firm consisted of two people who used to work for the Illinois Department of Revenue.
The authors thank Lyman Stone for his expertise on migration and assistance in providing data.
I looked for information on Mr. Stone.
It appears he’s an expert because he says he is.
I can find no vetted articles published by him, no credentials, and only a handful of blog posts.
The Illinois Taxpayer Federation (also listed as the Taxpayer Federation of Illinois in the report) is also listed and thanked for their assistance.
Unfortunately, the Federation is difficult to find these days.
Their Facebook page hasn’t been update in two years and both websites listed for them won’t come up on my browser. (I tried two browsers on two different computers.)
Their phone, however, hasn’t been disconnected. Perhaps I’ll try them on Monday.
As for the report itself, the authors note “we are tax policy researchers, not migration experts.”
Going through the report, the first source they cite is the Census Bureau “Population Estimate Program”.
I checked the Census Bureau’s site and can’t find any reference to a “Population Estimate Program”.
They do make population estimates, of course, but there is no such program as the authors state.
I did find a source for state-to-state and international migration statistics on the Census Bureau site.
Unfortunately, when I checked some of the numbers in the report (specifically Chart 3 on Migration Components), I was unable to duplicate the authors’ numbers.
That is, the numbers I found on the Census Bureau site do not match the numbers in the “Who Is Leaving Illinois” report.
Chart 4 discusses “Illinois IRS Exemption Data”.
The report indicates there is a footnote 16 related to this data, but there are no footnotes.
Unfortunately, the authors do not provide an exact source for their data.
I did find the data, however, and confirmed the numbers in the tables and in Chart 4.
Now, the weaknesses of the report do not necessarily mean that all of their conclusions are false.
It is indeed the case that there are many reasons people move.
People lose their jobs and find jobs in other states.
People retire and want to be where they grew up or where their children live.
Certainly Illinois taxes are one reason but certainly not the only reason and certainly not the biggest reason.
What are the causes of the severe financial difficulties of the State of Illinois that make it the worst of 50 States in the U.S.?
Flawed Report ignores property taxes, the largest tax “take”.
In Woodstock IL, a median income household in median valued home must pay over 10% of household income to property taxes.
That is triple the national average percentage taken of median household income for property taxes.
Property tax takes in Woodstock IL amount to roughly double State Income Tax nominal amounts of tax take for median income households.
Ceded Susan.
The hope is not that the current regime of corruption and Citizen destroying policies will be followed but that property owning freemen will throw off the shackles of slavery the current regime has engendered.
One possible path to light that fire is economic.
There are many paths but when property owners discover they do not own property but rather rent it from a group of insane individuals who believe returning to the medieval practice of overlords owning while serfs work to support them is a great idea our hope is for an economic restructuring.
When the overlords are starved for cash and are forced to imprison or execute the property owners through their “legal” intermediaries to collect then this may motivate a change.
We love our state.
We merely want the dictatorship to end.
As for the White Paper which Steve addressed in excellent detail, we can produce reams of White Papers by dubiously qualified and morivated individuals to support any insane position anyone wishes to espouse.
This particular paper fails to address GDP loss which may be the best measure of any state’s ability to support itself.
Excellent start for a discussion however.
Kudos.
Mr. Wilson,
Thank you for your analysis. I appreciate the time you have taken.
Jim Sitkoski
Time to move to Hawaii or Alabama!: https://files.taxfoundation.org/20170110101027/PropertyTax.png
California is the most populous state in the US by several percentage points, representing 12% of the total population.
California collects income tax from its residents at the following rates.
For single and married filing separately taxpayers: 1% on the first $7,850 of taxable income. 2% on taxable income between $7,851 and $18,610. 4% on taxable income between $18,611 and $29,372. 6% on taxable income between $29,373 and $40,773.
The top tax rate in California is over 10 percent.
Convenient how you stopped listing it well before that. And 40 k in Frisco won’t even buy you a studio apartment.
California is full of homeless people who work full time for billion dollar corporations who sell your private information to other corporations and the government.
Is that your egalitarian dream?
Nobody is going to be paying a one percent tax.
One of the proposals in the IL House would raise taxes on everybody making more than 17,000 dollars a year.
Former Senator Daniel Biss told me the top rates would be similar to Iowa.
Iowa’s is roughly 9 percent.
Also, the population of a place is not necessarily an indication of how well it’s run.
It’s the second largest state in the contiguous United States, it’s coastal, it has nice weather, it has a lot of immigration, it’s home to Hollywood and Silicon Valley, and it has a lot of Hispanics who have a high birth rate.
There are a lot of people in Africa.
Maybe you should go there.
Do you EVER comment honestly?