Gov. J.B. Pritzker unveils graduated state income tax plan he says would give break to taxpayers earning less than $250K (Chicago: appointed, unemployed)

[flamadiddle]

Originally Posted by Caglee

Quiet? It doesn't take a genius to rip a progressive tax. All a progressive tax does is shift the burden of taxation onto those who have the most opportunity to leave the state. Those in poverty, the working class, and the entrenched middle classes raising families and working paycheck to paycheck to afford their massive property tax bills will have a far tougher time uprooting themselves and leaving the state than those making $250k+.

Who will the tax burden shift to then?

Agree on that, the combination of the already high property/sales tax, the recent income tax increase, the cap of $10K on SALT and this likely additional income tax increase on the wealthy will certainly push many of them to jump ship. >

https://www.foxnews.com/politics/new...trusive-audits

[My Kind Of Town]

Originally Posted by Caglee

Quiet? It doesn't take a genius to rip a progressive tax. All a progressive tax does is shift the burden of taxation onto those who have the most opportunity to leave the state. Those in poverty, the working class, and the entrenched middle classes raising families and working paycheck to paycheck to afford their massive property tax bills will have a far tougher time uprooting themselves and leaving the state than those making $250k+.

Who will the tax burden shift to then?

I beg the differ. Most folks making $250k+ will have a hard time finding comparable salaries in low tax states and for the ultra wealthy business owners it’s not exactly easy to relocate a business if your client base is already established in a specific area. Most making $250k+ in Chicago can likely find comparable salaries in cities like LA, SF, NYC, Boston, etc but have you seen the difference in COL in those areas?? Much easier for the middle class in the $80-175k range to move out of state and find comparable salaries in southern states with lesser tax rates. So, no, I don’t agree with what you are saying.

And, again, all I read on this site for the past 12 months was that EVERYONE except the working class families would see a tax increase under JB’s plan. You were wrong, just admit it.

[My Kind Of Town]

JB really has a tremendous opportunity here. The bar is set so low right now. The state hit rock bottom at the end of Rauner’s tenure. If J.B. finds a way to both balance the budget and start pulling the state out of debt (which I’m still highly doubtful of), he will be hailed a hero. All we’ve been hearing for the last decade is that the state is destined for deep despair and pain. If he finds a way to alter the course of the state’s inevitable doom...Certainly the type of turnaround that could serve as a springboard for a presidential campaign.

[Di3s3l_Pow3r]

Originally Posted by My Kind Of Town

I beg the differ. Most folks making $250k+ will have a hard time finding comparable salaries in low tax states and for the ultra wealthy business owners it’s not exactly easy to relocate a business if your client base is already established in a specific area. Most making $250k+ in Chicago can likely find comparable salaries in cities like LA, SF, NYC, Boston, etc but have you seen the difference in COL in those areas?? Much easier for the middle class in the $80-175k range to move out of state and find comparable salaries in southern states with lesser tax rates. So, no, I don’t agree with what you are saying.

And, again, all I read on this site for the past 12 months was that EVERYONE except the working class families would see a tax increase under JB’s plan. You were wrong, just admit it.

100% agree

[nap1313]

Originally Posted by My Kind Of Town

Doubt it happens but I’m down with that. If they really want to make the state’s financial woes disappear they can surely do it. Just takes a little political willpower. From what I’ve seen so far, we’ve got a better chance of something dramatic (in a positive way) occurring under this governor than any of the previous three combined.

This right here! Believe it or not, lots of people over 250k know the incredible deal they have living in Chicago, despite taxes. It’s a deal for most of them given that to pursue similar opportunities, they would be looking at cities with even higher cost of living and less amenities.

[Nodpete]

When ever a democrat says " I'm giving you a tax break" what they really mean is " My taxes will break you" !

[Caglee]

Originally Posted by My Kind Of Town

I beg the differ. Most folks making $250k+ will have a hard time finding comparable salaries in low tax states and for the ultra wealthy business owners it’s not exactly easy to relocate a business if your client base is already established in a specific area. Most making $250k+ in Chicago can likely find comparable salaries in cities like LA, SF, NYC, Boston, etc but have you seen the difference in COL in those areas?? Much easier for the middle class in the $80-175k range to move out of state and find comparable salaries in southern states with lesser tax rates. So, no, I don’t agree with what you are saying.

And, again, all I read on this site for the past 12 months was that EVERYONE except the working class families would see a tax increase under JB’s plan. You were wrong, just admit it.

Don't take my word for it, just look at what is happening in New York.

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

"Last year, the study said, 61.5% of New York movers left the state; just 38.5% moved in. Among those who left, 41% earned $150,000 or more. Just 8.4% earned less than $50,000."

"income tax revenues were coming in $2.3 billion below the expectations of just a month ago."

Keep your head buried in the sand if you want. When the top 1% start leaving the state, Illinois' financial situation will worsen. It's going to worsen either way, but a progressive tax is just going to put the pedal to the floor.

[My Kind Of Town]

Originally Posted by Caglee

Don't take my word for it, just look at what is happening in New York.

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

"Last year, the study said, 61.5% of New York movers left the state; just 38.5% moved in. Among those who left, 41% earned $150,000 or more. Just 8.4% earned less than $50,000."

"income tax revenues were coming in $2.3 billion below the expectations of just a month ago."

Keep your head buried in the sand if you want. When the top 1% start leaving the state, Illinois' financial situation will worsen. It's going to worsen either way, but a progressive tax is just going to put the pedal to the floor.

What’s your solution then? All I hear are complaints. JB is thinking outside the box to generate new revenue and I can only hope these changes coincide with some type of pension reform. But you have to start somewhere.

Burying one’s head in the sand would be to do nothing at all (Rauner). At least JB is trying to do SOMETHING to address the situation. Sure beats burying one’s head in the sand and governing a state for 793 consecutive days without an approved budget. That was a great plan!

[My Kind Of Town]

Here’s the other thing. You mention New York and Illinois. Two states that pay more in federal tax dollars than tax dollars received, that end up subsidizing states like Indiana. How about we turn the tables and states like Indiana subsidize Illinois and New York? Then we’ll see how fiscally sound the respective states are once the playing field is leveled.

https://www.google.com/amp/www.gover...ack.html%3fAMP

https://wallethub.com/edu/states-mos...vernment/2700/

https://www.google.com/amp/s/www.was...ant-even-more/

https://www.apnews.com/2f83c72de1bd440d92cdbc0d3b6bc08c

[aga412]

Originally Posted by My Kind Of Town

Burying one’s head in the sand would be to do nothing at all (Rauner). At least JB is trying to do SOMETHING to address the situation. Sure beats burying one’s head in the sand and governing a state for 793 consecutive days without an approved budget. That was a great plan!

Clearly you are unaware of an axiom by Calvin Coolidge, "It is much more important to kill bad bills than to pass good ones."

Doing "something" (which, the "something" you wanted was Rauner capitulating to the Democrats and allowing them to pass one of their woefully unbalanced budgets in the name of doing "something.") Though he could be more effective, at least he wasn't allowing that to happen.

JB is Madigan's rubberstamp. He'll pass all the cockamamie ideas that come out of Springfield as long as they are Madigan approved. The minimum wage hike, and other disasters, which will just line the pockets of the Chicago and Springfield elites while screwing the average Illinoisan, will get his approval. Not every "solution" or "action" is a good action. You shouldn't be happy that someone is "doing something" if that "something" has a net negative impact.