Illinois Income Taxes (Chicago, Oak Park, Oregon: sales, real estate, rent)

[linicx]

Are your personal income taxes as bad as you think? Let's look at what the tax man does't do: Illinois does not tax social security or any type of pension that fits legal guidelines. Illinois does not have a personal property tax either. I believe there are five states that do not tax social security or company pensions. In Illinois the "no tax" pension benefits do not include earned interest from IRA, CD, stocks and bonds, or other similar instruments

Be aware that some of the no income tax states that do not tax social security can and do tax pensions as personal property. It is often based on AGI and age.

"Here are the states with the highest top income tax rates and the highest rates for the middle class, according to studies by the Tax Foundation and the Heritage Foundation." Illinois is not on the list.

5 States that Will Take the Most of Your Paycheck in Income Taxes




.

[MSchemist80]

Property taxes can easily eat up 25%+ of an average family's income. Even a modest house can have $10k in property taxes. The Sales tax in the Chicago area especially is also among the highest in the nation. Also gas taxes are very high as well as that special formula nonsense that was supposed to add about 0.10c a gallon to the cost of gas which instead routinely give us the highest gas prices in the nation.

[linicx]

I do not disagree with what you say, but you can say the same of California and Manhatta. What I wrote is about is personal income and business taxes. IL 5% flat is much lower than Iowa. for instance.

I have said before the state legislature is determined to squeeze the last penny of liquid assets out of all of us. But. Unlike other states like Missouri, Illinois does not cap the price a gasoline a retailer can charge at the pump.

When I lived in MO the cap was 10 cents per gallon. The retailer I know would show his invoices to any one who wanted to see them. How did he make money? It is a fishing area. He sold poles, line, hooks and sinkers, worms and live bait along with beer, food, and convenience items like tobacco and candy. There was no cap on thise items. He complained about taxes, too. MO is a personal property state where some towns charge 9% for groceries. I pay 1%, but I don't live in Cook County or own property there.

[Opin_Yunated]

Illinois' flat 5% tax rate was lower than my effective tax rate in New York.

[pete6032]

Originally Posted by MSchemist80

Property taxes can easily eat up 25%+ of an average family's income. Even a modest house can have $10k in property taxes. The Sales tax in the Chicago area especially is also among the highest in the nation. Also gas taxes are very high as well as that special formula nonsense that was supposed to add about 0.10c a gallon to the cost of gas which instead routinely give us the highest gas prices in the nation.

Exactly. Just because our income tax is low does not mean it's an affordable state to live in.

[MSchemist80]

5% is about medium in terms of an income tax. Several states have none and several others have higher. Combine that with the insane property, very high sales, high gas taxes and that special blend BS and you have a state that residents and businesses are fleeing. The Illinois Dummycraps pretty much exemplify every Republican stereotype and attack ad they made about them.

[linicx]

There are only 5 states that do not tax SS and Pension. Most of the others have personal property tax - which Illinois does not -- that treats the pension as personal asset.

IL has 12 million residents of which two-thirds live in Cook County and Chicago. This means that ? percentage of home owners pay a high property tax to support 8M people and schools your children attend and their teachers.

If you do not like the convenience of instant gratification, good medical services, decent neighborhoods, and schools that educate, do the American thing. Move to one of the 36 states that do not offer high property taxes, ACA, and will not expand Medicaid. These states do tax SS and Pensions, and most personal income tax is higher than Illinois.

Enjoy your new life and low real estate taxes. Been there, done that, and came home.

[MSchemist80]

A lot of people are leaving as shown by numerous studies on US migration and resident satisfaction and eventually I will probably join them. Not many are returning.

The idea that the people of Illinois are getting a good deal for the increasingly large amounts of money being confiscated from them by that corrupt, parasitic farce that passes for government here is completely preposterous. We have become the poster child for bad government, a national embarrassment, and a big ad against the Democratic Party.

[linicx]

Which is why new business is moving in, and established business is expanding. It is why Chicago received a billion dollars and put people to work on capital improvement projects. Most of the money confiscated goes right back to the 8M people who live in Cook County. Themajority of 50M visitors that come to Chicago do return, and more than a few move from more expensive places to enjoy Illinois. It seems to me there are people who live in Chicago that cannot afford it and won't admit it. All mega-cities are very fluid. People move out, people move in. They rent U-haul to move family and they're tagged as leaving Chicago even if the destination is Oak Park.

On another note I see where Oregon has the highest income taxes in three classes.

[Army_Guy]

Originally Posted by MSchemist80

The idea that the people of Illinois are getting a good deal for the increasingly large amounts of money being confiscated from them by that corrupt, parasitic farce that passes for government here is completely preposterous. We have become the poster child for bad government, a national embarrassment, and a big ad against the Democratic Party.

I think the only reason why California isn't worse is because of the weather. Not sure why people stay in places like CT, NY or NJ as IL is a much better alternative to those states if they want to stay in a state dominated by Democrats, IMO.