Even the suburban residents are fleeing Illinois.. (Chicago, Hinsdale: movers, houses)

[TheEnigmaMachine]

All of our personal anecdotes aside, it's unequivocal that people are leaving and have been consistently for the last 5 years. This much is beyond dispute.

So then I suppose the more productive discussion is:

A) What is the principal reason that people are leaving?

B) What can be done to satisfactorily respond to these concerns so they will stop leaving?

[flamadiddle]

Originally Posted by smegmatite

everyone I talk to that lives in the burbs or the city wants out... but they are mostly older folks (60+), who knows if they'll actually have the guts to do it or not.

Illinois is one of the few states that does not tax retirement income (yet) so I wouldn't expect older people to be fleeing.

@TheEnigmaMachine, it's the high taxes all around driving people out.

Nothing can be done because lowering taxes reduces revenue and Illinois is already in financial trouble. One could argue that cost cutting, reductions and more efficient operations would help, but no one is willing to take the bull by the horns so we flail into the future...

[MSchemist80]

Originally Posted by flamadiddle

Illinois is one of the few states that does not tax retirement income (yet) so I wouldn't expect older people to be fleeing.

It doesn't make much difference when the Demonrats are handing grannies 5 figure property tax bills.

[TheEnigmaMachine]

Originally Posted by flamadiddle

Illinois is one of the few states that does not tax retirement income (yet) so I wouldn't expect older people to be fleeing.

@TheEnigmaMachine, it's the high taxes all around driving people out.

Nothing can be done because lowering taxes reduces revenue and Illinois is already in financial trouble. One could argue that cost cutting, reductions and more efficient operations would help, but no one is willing to take the bull by the horns so we flail into the future...

What I would be curious about, and what I have yet to see tackled in quarantine terms, is how many people can the state potentially lose before the loss of tax base from depopulation negates any short term revenue benefit gained from additional taxes.

It would take some number crunching and accounting for several variables, but I am guessing some enterprising statistician or grad student with some time on their hands could pull it off

[damba]

Originally Posted by MSchemist80

It doesn't make much difference when the Demonrats are handing grannies 5 figure property tax bills.

What, older homeowners aren’t required to pay their taxes too?

Hint: don’t wait to appeal your taxes until after you have already been receiving the senior homeowner exemption for ten years.

[Curly Q. Bobalink]

Originally Posted by damba

What, older homeowners aren’t required to pay their taxes too?

Hint: don’t wait to appeal your taxes until after you have already been receiving the senior homeowner exemption for ten years.

Damba, the fact that everyone is REQUIRED to appeal their real estate taxes goes to show you how the system is broken. If the system were working properly, residences would be assessed equitably, and there would be nothing to gain from appealing for the vast majority of people. As it is now, we almost have a "rigged" system, where people who are motivated can reduce their taxes, which increases the rates on those who are not as aggressive. The commercial properties (downtown) are especially guilty of this, hiring firms like Mike Madigan's to keep their taxes lower than they would be otherwise. This conflict of interest (a politician who sets tax rates also having interest in a firm that appeals them) should be outlawed. This sort of corruption is one of the reasons why I myself want to flee.

Bottom line, the taxation system in Illinois is broken. The regressive sales and real estate taxes should be offset in the future by higher income taxes (which JB has proposed, but he understated the rates, they should be more like MN, OR, or CA - applied more broadly than the proposed increase on the top 3%, and with a higher top rate), and the excess applied to fund schools, which is the main driver of our excessive real estate taxes.

[TheEnigmaMachine]

Originally Posted by Curly Q. Bobalink

Damba, the fact that everyone is REQUIRED to appeal their real estate taxes goes to show you how the system is broken. If the system were working properly, residences would be assessed equitably, and there would be nothing to gain from appealing for the vast majority of people. As it is now, we almost have a "rigged" system, where people who are motivated can reduce their taxes, which increases the rates on those who are not as aggressive. The commercial properties (downtown) are especially guilty of this, hiring firms like Mike Madigan's to keep their taxes lower than they would be otherwise. This conflict of interest (a politician who sets tax rates also having interest in a firm that appeals them) should be outlawed. This sort of corruption is one of the reasons why I myself want to flee.

Bottom line, the taxation system in Illinois is broken. The regressive sales and real estate taxes should be offset in the future by higher income taxes (which JB has proposed, but he understated the rates, they should be more like MN, OR, or CA - applied more broadly than the proposed increase on the top 3%, and with a higher top rate), and the excess applied to fund schools, which is the main driver of our excessive real estate taxes.

Then my question would be as I stated above. What is the threshold when the Governor’s whole Sherrif of Nottingham routine with increasing taxes does more harm than good in terms of collected revenue? If we can all agree that taxation is the catalyst driving population loss, then it stands to reason that further increases will only accelerate this process.

Perhaps more importantly, what is the contingency plan when and if this happens? I don’t get the impression the politicians in this state think things through to any degree, especially as it pertains to finances.

[MSchemist80]

Originally Posted by damba

What, older homeowners aren’t required to pay their taxes too?

Hint: don’t wait to appeal your taxes until after you have already been receiving the senior homeowner exemption for ten years.

I think granny with her $35k fixed income is less burdened by a $1750 income tax bill than a $12,000 property tax bill.

[dcisive]

Well, the bottom line is granny can live a much better life in Sun City Arizona on that income and not be taxed with affordable nearby healthcare and activities during the winter outside as well. That's just one of many options for seniors and why they would likely leave Illinois. About the ONLY reason to stay is if their kids and grandkids live there and want to be nearby. Otherwise they would head out of town. Florida I guess is another option for many. Personally I feel Arizona is a much better situation. I hate humidity

[smegmatite]

granny should have learned how to use the senior exemption so her taxes don't skyrocket