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Old 11-02-2017, 12:05 PM
 
Location: Sweet Home Chicago!
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Given the hgh property taxes here ($20K per year is not all that unusual) and the proposed $10,000 limit on property tax deduction (if passed), will that make states like Illinois even more costly in the future? Appears that way to me...

Thoughts?
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Old 11-02-2017, 12:57 PM
 
155 posts, read 212,747 times
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Quote:
Originally Posted by flamadiddle View Post
Given the hgh property taxes here ($20K per year is not all that unusual) and the proposed $10,000 limit on property tax deduction (if passed), will that make states like Illinois even more costly in the future? Appears that way to me...

Thoughts?
This is going to be harsh, but maybe this will force tax reform in IL. It's crazy that we pay 2-4% of our house values in property taxes. We need reform for income taxes, fee for services,e school funding. Start from scratch. The county and the state cannot have property taxes as the sole revenue source.
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Old 11-02-2017, 01:51 PM
 
Location: Sweet Home Chicago!
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Quote:
Originally Posted by amd555 View Post
This is going to be harsh, but maybe this will force tax reform in IL. It's crazy that we pay 2-4% of our house values in property taxes. We need reform for income taxes, fee for services,e school funding. Start from scratch. The county and the state cannot have property taxes as the sole revenue source.
Will never happen though. Rauner's been calling for property tax reform for years and get's nothing but crickets in return. I think this is only going to accelerate the exodus from the state and those leaving will be those paying $10K+ in property taxes (*high income earners). Not good...
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Old 11-02-2017, 03:12 PM
 
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I agree that it could make Illinois more costly from a home-ownership perspective, however, if I was to characterize people that are paying $20K in property taxes: they are likely 1) high income (or have substantial assets), 2) can afford the increased taxes assuming they aren't living above their means, 3) may be helped by some of the other tax changes (i.e. getting rid of AMT, raising the dollar thresholds for highest tax rates, etc.) 4) are likely tied to employment in Chicago area and can't easily replace their incomes in other cities that aren't on the coasts. So, I personally, wouldn't expect an 'exodus' from this change alone.
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Old 11-02-2017, 05:14 PM
 
Location: Illinois
3,208 posts, read 3,543,450 times
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Quote:
Originally Posted by flamadiddle View Post
Given the hgh property taxes here ($20K per year is not all that unusual) and the proposed $10,000 limit on property tax deduction (if passed), will that make states like Illinois even more costly in the future? Appears that way to me...

Thoughts?
$20k per year would be an approximately $1 million home. I think that ranks as unusual.

Property taxes are generally not a problem for economic competitiveness. Income taxes, cost of doing business, and difficulty of doing business (permitting, licensing, etc.) are the major factors in determining competitiveness.

They're a hot button for homeowners. But the bottom line is property taxes should be the least of our concerns in Illinois given the ongoing fiscal crisis.
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Old 11-03-2017, 05:37 AM
 
Location: Sweet Home Chicago!
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Originally Posted by Hiruko View Post
$20k per year would be an approximately $1 million home. I think that ranks as unusual.

Property taxes are generally not a problem for economic competitiveness. Income taxes, cost of doing business, and difficulty of doing business (permitting, licensing, etc.) are the major factors in determining competitiveness.

They're a hot button for homeowners. But the bottom line is property taxes should be the least of our concerns in Illinois given the ongoing fiscal crisis.
Out in the west burbs, a home in the $700K range is right around $20K in taxes. If homeowners are stripped of deducting the extra $10K and have the ability to move, what do you think they will do?

This on top of the recent income tax increase would not be good for Illinois...
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Old 11-03-2017, 05:51 AM
 
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I'd say this would hit homeowners in states like CA, NY, CT, and NJ much harder than IL. With that said, this bill is DOA. Some tax reform will get passed eventually but not this version so all this is a bit premature.
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Old 11-03-2017, 06:16 AM
 
768 posts, read 1,102,864 times
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It is silly to think that high income earners can just easily pack up and move to much cheaper states and still make the same high income... That is just not the case - most of the time they are tied here...

Moving to a cheaper COL area means your salary will follow suit in most of these instances...

Mass exodus will not happen IMO - what will happen is both democrats and republicans will eventually agree on better/smarter leadership...

Last edited by JJski; 11-03-2017 at 06:35 AM..
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Old 11-03-2017, 07:14 AM
 
Location: broke leftist craphole Illizuela
10,326 posts, read 17,422,206 times
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Quote:
Originally Posted by Hiruko View Post
Property taxes are generally not a problem for economic competitiveness.
They are a big problem especially since in Cook commercial property is taxed double what residential is. I had an auto repair shop I frequent that went out and they specifically cited property taxes as a major contributor for their inability to be competitive yet profitable.
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Old 11-03-2017, 07:26 AM
 
Location: Sweet Home Chicago!
6,721 posts, read 6,474,525 times
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Quote:
Originally Posted by JJski View Post
It is silly to think that high income earners can just easily pack up and move to much cheaper states and still make the same high income... That is just not the case - most of the time they are tied here...

Moving to a cheaper COL area means your salary will follow suit in most of these instances...

Mass exodus will not happen IMO - what will happen is both democrats and republicans will eventually agree on better/smarter leadership...
Not me, I can live anywhere I want and I'll make the same salary no matter where I live. There is a lot more remote work available in this day and age.
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