illinois taxes and people who are moving out of the state (Chicago: for sale, insurance)

[flamadiddle]

Originally Posted by Liledgy

I guess I should’ve been a cleaning lady

Never too late to pursue your dreams!

[smegmatite]

I left when the services I was receiving were nowhere near the amount I was paying in taxes. So yes. Plus the weather sucks

[Curly Q. Bobalink]

Originally Posted by jasperhobbs

Very impressive that a cleaning lady can own a $350K house.

I can think of a few ways this could happen:
she may have inherited the home;
she may have lived there for a very long time;
she may have had a good job, lost it, and is now cleaning houses;
or she may be married to someone with a good job.

Either way, the point is that real estate taxes are not tied to someone's ability to pay the tax, where income taxes are directly tied to one's ability to pay them. Illinois' heavy reliance on real estate taxes is the definition of regressive, I would have been in favor of "The Fair Tax" had they framed it differently - if the plan had more brackets that take the load off of low-income workers, and if it offered relief for property taxes. But it didn't, so I voted "no". Let them re-write it, or even raise the flat tax, and spread the pain among the voters who keep putting people like Madigan in office. Ideally, they will raise the flat rate enough such that they can stop going back to the real estate tax well; as stated, paying an additional four percent of a thirty grand income is way cheaper than paying 3% annually on a hundred grand home.

With respect to taxing retirement income, maybe taxing folks with six-figure pensions wouldn't be such a bad idea anyway. They could offset the affect on low-income retirees by simply making an exemption for maybe the first 25K of income, exempting SS income, etc..

[Liledgy]

paying an additional four percent of a thirty grand income is way cheaper than paying 3% annually on a hundred grand home.
On the flip side, northshore communities would gladly pay$30k-$40k in real estate taxes than having there millions dollar(s) income taxes higher.

[Curly Q. Bobalink]

Originally Posted by Liledgy

paying an additional four percent of a thirty grand income is way cheaper than paying 3% annually on a hundred grand home.
On the flip side, northshore communities would gladly pay$30k-$40k in real estate taxes than having there millions dollar(s) income taxes higher.

I think we both agree that the current system is broken. Pritzker's "Fair Tax" does not do enough to fix it. Re-write it and we'll talk. Until then, jack up the flat tax to nine percent or so (which will take care of your concern about the North Shore folks), include retirement income, put in a very large deduction ($25K or so) that will shield the low income, and start shifting taxes from real estate to income. Then, we'll start talking about the regressive sales tax, LOL.

[Grlzrl]

Originally Posted by Curly Q. Bobalink

I can think of a few ways this could happen:
she may have inherited the home;
she may have lived there for a very long time;
she may have had a good job, lost it, and is now cleaning houses;
or she may be married to someone with a good job.

Either way, the point is that real estate taxes are not tied to someone's ability to pay the tax, where income taxes are directly tied to one's ability to pay them. Illinois' heavy reliance on real estate taxes is the definition of regressive, I would have been in favor of "The Fair Tax" had they framed it differently - if the plan had more brackets that take the load off of low-income workers, and if it offered relief for property taxes. But it didn't, so I voted "no". Let them re-write it, or even raise the flat tax, and spread the pain among the voters who keep putting people like Madigan in office. Ideally, they will raise the flat rate enough such that they can stop going back to the real estate tax well; as stated, paying an additional four percent of a thirty grand income is way cheaper than paying 3% annually on a hundred grand home.

With respect to taxing retirement income, maybe taxing folks with six-figure pensions wouldn't be such a bad idea anyway. They could offset the affect on low-income retirees by simply making an exemption for maybe the first 25K of income, exempting SS income, etc..

I know a bit about her story. I think she bought the house around 2006 at the peak of the market because everyone told her she should buy. I think possibly they were showing her and her mother's income on the loan but not sure about that. She is from Poland and sometimes the communication is a bit iffy. She came her when she was 14 and since she has been grown has always cleaned houses. Her mother did as well but I didn't know her. She is not married. She did want to sell the house at some point but she was underwater on the mortgage so she stuck it out. I did help appeal her taxes on the house and got it down about $1000. I couldn't get it down any lower because it was a newer house. She does have a fiance who lives with her and I suspose he helps with the bills. I am not sure where her mother lives now. She has some health issues and I think she wasn't cleaning anymore. Cleaning houses if very hard on your body.

[Grlzrl]

Originally Posted by Liledgy

paying an additional four percent of a thirty grand income is way cheaper than paying 3% annually on a hundred grand home.
On the flip side, northshore communities would gladly pay$30k-$40k in real estate taxes than having there millions dollar(s) income taxes higher.

Yeah, this pretty much nails it. But the people who no longer need to live in Illinois because their kids are out of school or they are retiring are not paying those big taxes. I am seeing a lot of them move out of state.

I am looking at houses. I tried to buy one that was way overpriced for a long time and it sold when everyone freaked out and moved out of the city. We though my husband might get laid off so we held tight and waited and by the time we found out, it was sold. But we are still looking in the neighborhood because I love it. If this tax passes, we will not buy and we will likely leave Illinois in 4 -6 years when my kids graduate high school. People are only going to be taxed at those high rates for so long.

[Liledgy]

Well don’t go to Wisconson or Iowa. Indiana should work, just get some billybob teeth.
Mmmm, waitingtill after high school what’s wrong with Indiana schools? Lalamere has some openings.

[jasperhobbs]

Originally Posted by Liledgy

Well don’t go to Wisconson or Iowa. Indiana should work, just get some billybob teeth.
Mmmm, waitingtill after high school what’s wrong with Indiana schools? Lalamere has some openings.

Wisconsin taxes are high but at least they have good roads, schools and recreation. So some bang for the buck.

Iowa has fairly low taxes and is a well run state. A bit on the boring side though.

Indiana might be your best bet with close proximity to Chicago and reasonable taxes and cost of living.

[MovingForward59]

Originally Posted by Liledgy

Well don’t go to Wisconson or Iowa. Indiana should work, just get some billybob teeth.
Mmmm, waitingtill after high school what’s wrong with Indiana schools? Lalamere has some openings.

Seriously quit with the harmful stereotypes. The world has enough of that hate and ignorance without you piling on.