High Illinois Property Taxes Making Taxpayers To Leave The State
This Article Is About High Illinois Property Taxes Making Taxpayers To Leave The State Gustan Cho Associates have written multiple articles recently on how high Illinois property taxes are affecting homeowners.
- This holds true especially in Chicago and its collar counties
- Rising high Illinois property taxes are hurting property values for Illinoisans
- High Illinois property taxes are also hurting the disposable incomes of families
- High Illinois property taxes are forcing real estate investors to raise rents
- The effective tax rates lie between 3% to 5%
- These rates are making homeownership unaffordable for many working-class Illinois homeowners and forcing many to either sell their homes or flee the state
- There was a recent report on the exodus of blacks by the Chicago Tribune where African Americans were hit by the rising high Illinois Property Taxes
- High Illinois property taxes are forcing many businesses to leave the state to lower-taxed states
- Due to countless businesses from Illinois, the Chicago area and its surrounding suburbs are seeing fewer job opportunities, more layoffs, higher crime rates than ever before, and a failing education system
In this article, we will discuss and cover High Illinois Property Taxes Making Taxpayers To Leave The State.
High Illinois Property Taxes Affecting All Types Of Taxpayers
The High Illinois Property Taxes are not just affecting the working-class citizens.
- Whether you are low income, moderate-income, average-income, high-income, or wealthy, the high Illinois property taxes are affecting all Illinoisans
- Many high-end income earners on the North Shore are getting fed up with the new governor, JB Pritzker, tax ideas
- JB Pritzker was supposedly the Prince of Illinois who was going to fix Illinois financial mess
- However, a large percentage of voters are having voters remorse after the election of JB Pritzker
- Multiple groups of taxpayers started an IMPEACH PRITZKER ORGANIZATION
- The bottom line with the new Pritzker Administration is to raise taxes and create new taxes to solve Illinois financial crisis
- However, Pritzker has no plans in making major cuts and cutting spending
- Actually, he is raising spending and thinks his new Progressive Tax will solve Illinois financial disaster
- Taxpayers are paying more taxes today for fewer services than ever before
- One thing Pritzker does not realize is that by raising taxes and creating new junk taxes is forcing taxpayers to leave the state
- This holds true and has been so for many years now
With residents fleeing the state to lower-taxed states, the tax pool base shrinks. This creates more tax burden for Illinoisans who still stay in the state.
Case Scenario Of Illinoian Leaving To Lower-Taxed State Colorado
Mike Gracz is the National Sales Manager at Gustan Cho Associates.
- Gustan Cho Associates is headquartered in Lombard, Illinois
- Mike and his family left Illinois earlier this for Denver, Colorado
- Mike Gracz was born and raised in Illinois
- He even went to college and graduated from Northern Illinois University
- He owned a home in Barlett, Illinois which he sold last year due to his decision in leaving the state due to high Illinois property taxes and ridiculous taxes
- His property taxes on his $220,000 townhome was $7,900 per year
- He was on hold in leaving the state permanently until JB Pritzker took office
- Once he witnessed Pritzker’s competence and his talks of making Illinois a progressive tax state, Mike decided to pull the trigger and flee Illinois
- Illinois, a flat-tax state, will soon become a progressive tax state
- Pritzker Progressive Tax Reform will tax higher-income wage earners
- Pritzker thinks taxing the rich will be the solution in solving Illinois’ financial crisis
- Mike, who recently purchased a $500,000 home in Denver will be paying $3,200 in property taxes in Colorado
Saving the tax difference year after year into investments that yield an average of a 6% return will yield Mike a great return and phenomenal savings over the next 10 years.
Property Taxes In Illinois Versus Other Taxes
Illinois has the second-highest property tax rates in the Nation right behind New Jersey.
- However, many analysts and experts think Illinois will surpass New Jersey as the state with the highest property tax by mid-2020
- New Jersey property taxes have stabilized, unlike Illinois. Pritzker and lawmakers have plans in increasing property taxes and other taxes higher in the coming months due to the huge pension debts
- Colorado ranks as the 39th highest property tax state in the nation
Over 50% of Illinoisans leaving the state is due to property taxes and other taxes the state is imposing. Over 1.3 million residents left Illinois to other lower-taxed states between 2000 and 2017. The total population of Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Cicero, Champaign, and Bloomington is equivalent to $1.3 million residents.
More And More Companies Are Offering Remote Job Positions
More and more companies are offering remote job positions. Due to remote career opportunities, wage earners are no longer tied to a particular geographic area. More homeowners and taxpayers can purchase a home in any state. Due to this opportunity, states like Illinois need to brace themselves for a major exodus of residents. What JB Pritzker and team are doing by overloading Illinoisans with tax increases and introducing the Progressive Tax to Illinois is most likely going to backfire. More and more residents are leaving Illinois every year than the prior year. Just in 2017 alone, the state lost 114,000.
That net loss of people to other states now outpaces international immigration and net births in Illinois. As a result, Illinois is shrinking. Illinois has now lost population four years in a row.Only West Virginia has that same distinction.
Financial Outlook Of Illinois
One of the things that Illinois needs is experienced competent leaders who believe in running state government like a business. There is no reason why Illinois needs to be broke. Any prudent business person knows it is not how much you make but what you spend. Look at a wage earner who works the same job for 30 years and retires with a nice pension, paid off home, and hundreds of thousands of savings. This worker is set for life and is financially stable. On the other hand, there are thousands of professional athletes and/or celebrities who made tens of millions and are broke before the age of 50 due to mismanagement of their finances. Why is Florida raking in billions while Illinois is literally flat-ass broke and on the verge of bankruptcy. It is because of leaders like JB Pritzker, Michael Madigan, Lori Lightfoot, and countless of other incompetent leaders who think taxes are the savior for living the high life. Unfortunately, they are wrong and are hurting Illinoisans. Illinois needs to fire incompetent lawmakers and get new blood with knowledge and experience in office. The U.S. economy is booming.
- Homeownership numbers are at a record historic high
- More and more renters are buying homes
- Consumer confidence levels are at an all-time high
- The stock market is setting records and is at historic highs
- The Trump economy is on fire with no signs of any recession and/or slow down
- Wages are at an all-time high
- There are more available high-paying jobs than there are workers
- Unemployment numbers have hit a 50-year low
- Homebuilders are selling more homes than they have available
- Therefore, they are buying up land like never before
- Home prices are increasing at record levels
- Due to rising home prices, HUD and FHFA are increasing loan limits
- Adding to the demand for homes, many lenders have launched Non-QM and alternative financing mortgage programs where more homebuyers can qualify for homes
- However, not all states are thriving
- There are many states that are struggling and on the verge of bankruptcy
- Illinois and New York are two of those states that are facing major budget deficits
- This is because of high taxes, corruption, and incompetent politicians
- For example, Illinois, under the leadership of J.B. Pritzker, is seeing a record number of taxpayers and businesses fleeing the state to other states with low taxes
- Illinois Governor J.B. Pritzker, who is currently under criminal investigation for property tax fraud, seems to keep on increasing taxes and creating new taxes
- In general, high-property taxes stunt housing sales and growth
- High state taxes will force taxpayers and businesses to flee the state to other lower-taxed states
- High taxes, high cost of living, and public corruption are the main reasons why taxpayers and businesses are fleeing their state to another well-run state
In this article, we will discuss and cover why Homebuyers Migrating To Low-Taxed States To Purchase Their Homes.
Homebuyers Migrating To Low-Taxed States Due To Politicians Increasing And Creating New Taxes
It is not how much you make but what you spend. States like Florida, Tennessee, Alabama, Mississippi, Kentucky, Texas, Georgia, North Carolina, and other Republican states are thriving.
- They are raking in billions of revenues
- Politicians, from the state governor on the chain of command, are running their states like a business
- Many states with surpluses are lowering taxes
- A handful of states like Florida, Tennessee, Nevada have no state income taxes
- The lower taxes are attracting Businesses and Homebuyers Migrating To Low-Taxed States
- They are only spending with the budget they have and not running the government at a deficit
- However, a handful of states run by Democrats are running state government at a deficit
- Illinois is a perfect example
- Illinois has no intention of cutting spending
- Actually, they are increasing spending even though they are running state government at a deficit
- The pension debt is mounting and there is no sight of breaking even in the foreseeable future
- Even with major budget problems, lawmakers are proposing an increase of Illinois lawmakers
- The newly elected Illinois governor, J.B. Pritzker, seems the only solution he has is raising taxes and creating new taxes
- Pritzker is lobbying to change the state’s flat-tax to a new progressive tax system
- This will most definitely backfire on him where wealthy Illinoisans will flee the state in record numbers
- At the end of the day, Illinoisans are the folks that are getting hurt
- Illinois has the nation’s second-highest property tax rate
- Illinois property values have been stunted for over a decade due to high taxes
While other states like Florida, Indiana, Tennessee, Texas are thriving and experiencing record-high home values, Illinoisans are facing their state on the verge of bankruptcy. Increasing taxes may stop the bleeding temporarily. However, it will backfire and make matters worse if taxpayers and businesses are flocking out of the state to other lower-taxed states.
Data Of Homebuyers Migrating To Low-Taxed States
What Experts Say
Michael Gracz is an Associate Economist at Gustan Cho Associates. He has been studying this report and reviewing the data released. Data on the state’s political leanings and/or tax burdens are not included in The Mercatus Report.
Other Surprising Numbers And Data
Leaders of high taxed states need to really look at ways of solving the state’s deficit without raising taxes. Many politicians have huge egos that they do not want to follow their neighboring state’s financial model. For example, Indiana is one of the states that is thriving. A large percentage of Illinoisans flee to Indiana. However, Illinois politicians think they know it all and do not want to follow the business model of other states that are thriving. This is not just Illinois but many financially stressed states.
