illinois taxes and people who are moving out of the state (Chicago: bankrupt, school district)

[dtcbnd03]

I just got a call from a good friend of mine who is 100% moving out of state to Nashville due to Illinois' high taxes and the pending "fair" tax. His boss was setting up residency in Michigan but now is looking at Nashville as well. Both literally said they're fine with progressive tax structures if the pension mess was handled. But it's not being touched so they're not gonna continue throwing good money after bad...especially when every other tax in IL is sky high.

Purely anecdotal story...but we read about it so much on these boards and now to hear it from people you know in their 30s and 40s moving out for this sole reason. It also shows how easy the higher income can shield or skip around these taxes with more remote work. Unless there's an amendment on the pensions I plan to vote "NO".

[Liledgy]

Originally Posted by BRU67

There's a strong limiting effect to a flat tax like we have now. It doesn't give politicians as much flexibility to "pander" to their bases because they can't use the income tax as a "gift basket". If it goes up for one, it goes up for all.

If they get the amendment passed, then they'll be able to enact higher percentage taxes on the wealthy just as they're saying. I believe they will try that, or tell us they're trying that. The problem, though, is going to be that those higher earners won't pay much state income tax. They usually have business losses, rollover investments, and other mechanisms by which take their personal income down to zero. And they can afford great accountants to take advantage of every possible income tax loophole. I mean, do you remember the Trump income tax return story? Pepperidge Farm remembers. Or those people will just move if they see that they may get hit with a high state income tax on top of their unchecked property tax bill. Then the next "tier" of rich people will get hit, and so on down the line until eventually, the middle class ends up with the high burden.

I'm just astonished that proponents of this take voters for being completely stupid. Anyway, polling is showing that this amendment is in major trouble. I hope that downward arrow continues.

State income tax is going up. Ruiner couldn’t pay the bills either. Go ahead, Vote this down, the flat tax will just get raised, maybe your iras will get taxed. It’s coming one way or another.

[MovingForward59]

Originally Posted by Liledgy

State income tax is going up. Ruiner couldn’t pay the bills either. Go ahead, Vote this down, the flat tax will just get raised, maybe your iras will get taxed. It’s coming one way or another.

Oh you gotta love the threats & intimindation.
Vote for the Fair Tax Now! Or else there will be severe consequences. Just like what Governor JB’s team did a few weeks ago.

[BRU67]

Originally Posted by Liledgy

State income tax is going up. Ruiner couldn’t pay the bills either. Go ahead, Vote this down, the flat tax will just get raised, maybe your iras will get taxed. It’s coming one way or another.

You bet your sweet [censored] I [censored] [censored] will! [Censored]. I mean, what the [censored]!

I recall you saying Ruiner was the problem. Well, he's out and Democrats have a supermajority in the General Assembly and Senate. So they should get to work on fixing this, without raising our taxes. No excuses now. It isn't like the public employee unions are suddenly going to go Republican if their pensions are reformed or there are cuts.

[dtcbnd03]

Originally Posted by BRU67

You bet your sweet [censored] I [censored] [censored] will! [Censored]. I mean, what the [censored]!

I recall you saying Ruiner was the problem. Well, he's out and Democrats have a supermajority in the General Assembly and Senate. So they should get to work on fixing this, without raising our taxes. No excuses now. It isn't like the public employee unions are suddenly going to go Republican if their pensions are reformed or there are cuts.

100000% agree Bru67!!! And democrats had a veto proof supermajority even when Rauner was in office. They could have passed a budget without him. But they didn't. Not that it matters cause every budget for the last 40 years has run us further in debt. Some solutions though:

1. March on Midway with everyone in Illinois until Madigan resigns
2. Pass graduated income tax with pension amendment (only can pass together)
3. Eliminate all pensions and switch to 401k immediately
4. Slash taxes across the board (primarily sales and property taxes)
5. If none of the above then just declare bankruptcy

[wase4711]

Originally Posted by dtcbnd03

5. If none of the above then just declare bankruptcy

I'm sure you are aware that states can NOT declare bankruptcy, and chubby pritzker would NEVER admit he cant fix things so BK is NOT an Option for Illinois..

[dtcbnd03]

Originally Posted by wase4711

I'm sure you are aware that states can NOT declare bankruptcy, and chubby pritzker would NEVER admit he cant fix things so BK is NOT an Option for Illinois..

Puerto Rico did and it wasn't "allowed to" either. When the money's run out you can call it whatever you want. Illinois constitution also requires a balanced budget yet we're somehow $250 billion in debt. Forget what we're "allowed" to do...we can do whatever we want.

"Historically, Puerto Rico was barred from declaring bankruptcy. In the end, however, financial reality trumped the statutes, and Congress enacted a law last year allowing bankruptcy-like proceedings."

https://www.nytimes.com/2017/05/03/b...rico-debt.html

[wase4711]

the difference is that puerto rico is not a state, like Illinois is, and, Puerto rico doesnt have the fiscal depth that Illinois does, so no one in congress would agree to allow Illinois to do it, just because Puerto Rico did...

"Government workers will forgo pension money, public health and infrastructure projects will go wanting,"
Can you imagine the scumbags in Springfield agreeeing to this????
and, until the constitution is changed, Pensions can NOT be dropped in Illinois

Illinois has plenty of money; they just dont believe in living within their means..

[dtcbnd03]

Originally Posted by wase4711

the difference is that puerto rico is not a state, like Illinois is, and, Puerto rico doesnt have the fiscal depth that Illinois does, so no one in congress would agree to allow Illinois to do it, just because Puerto Rico did...

"Government workers will forgo pension money, public health and infrastructure projects will go wanting,"
Can you imagine the scumbags in Springfield agreeeing to this????
and, until the constitution is changed, Pensions can NOT be dropped in Illinois

Illinois has plenty of money; they just dont believe in living within their means..

Territory vs State...doesn't matter. Plenty of money...yet we are hundreds of billion in debt. The net debt number is all that matters and Illinois is broke! I've worked in Chapter 11 bankruptcies my whole career and have seen many companies restructure their debts and creditors receive pennies on the dollar. If municipalities can do it...so can states.

[wase4711]

time will tell, but I cant envision any scenario where that happens..