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Sales tax is higher in other states, and TX real estate tax is FAR lower than the 6%/year in the Chicago suburbs (see the link I posted.)
Illinois property tax = 2.3%. Trying to compare a specific neighborhood in Illinois to a TX State average is typical of you, but everyone can look up the truth if they are interested.
It is same in any State. Property taxes in cities are higher than in rural areas, and even if the tax rate itself it not high, the amount you pay can still be high due to property values. New York City property taxes are under 1%, which is still a lot when the median price for an apartment is almost a million. This is why people often move out of cities when they retire. After all, the jobs are typically the biggest reason for people to stay in cities.
The GOP for decades has not allowed for a rate adjustment. Earning's increased and brackets should change. We learned back in the 80's that caps and limits do not work yet the GOP has pushed caps and limits on SS.
It's time for people to understand that SS is the stable part of retirement. Giving you the ability to use your other parts of retirement earning's (401K, Ira, Roth) to be a little more aggressive.
The line of thought that claim SS is worthless is a myth. Once you hit retirement you find out just how much it comes in handy.
Illinois property tax = 2.3%. Trying to compare a specific neighborhood in Illinois to a TX State average is typical of you, but everyone can look up the truth if they are interested.
Note that I compared specific areas, Chicago suburbs vs. Dallas suburbs.
Illinois property tax = 2.3%. Trying to compare a specific neighborhood in Illinois to a TX State average is typical of you, but everyone can look up the truth if they are interested.
The reality is that earning's are also lower in Tx. and most Southern states. The claim that cost of living being lower is failing. The price of a car, house, rent, food are becoming the same across the nation.
Tax's are being pushed lower to property owners. More item's are being taxed as property here in the south then I ever saw in NJ. I still see lower Real Estate taxes, but I now pay more in State taxes and fees then ever (GOP for taxes).
Blue states need to stop taxing their residents so much. It's nothing but egregiously excessive local and state government spending due to graft. Blue states need to get their act together before too many of their productive citizens leave due to being overtaxed, and they're left with huge government expenses and way too little tax revenue.
Maybe that's the case in Illinois based on your example and most certainly CA with the income and sales tax. I don't think taxes are too much of a burden in MA comparatively. I think the people in their state should pay for their schooling, their roads, infrastructure, their welfare, etc. Each state should be responsible for their own and that's going to cost money. That's a different thing than your example, which has an inexpensive house that was taxed to high heaven. Seems like the government is trying to recoup on monies because it's a depressed area? I don't know. Here, it wouldn't be the tax rate at issue, but the cost of the house instead. That involves other economic factors that are outside my scope. That's the issue. It's the COL-cost of property, childcare, food.
I don't know what the solution is. There must be a way to control that market so it doesn't keep spiraling out. Maybe the resale of real estate should be capped at a certain percentage (adjusted for inflation of course)? Regulation is needed.
Yeah, I'd be OK with moving the high earners ($400K - the top 1%) into a slightly higher income tax bracket, as long as it's still lower than what they were paying before the tax cut. As far as the long-term capital gains rate, I thought it already WAS higher for higher earners. (People in the low tax brackets pay nothing, I believe, and as you go up the income ladder, the rate increases. I thought.)
You are correct. The long-term capital gains tax brackets are:
0%
15%
20%
Short-term capital gains are taxed the same as ordinary income.
The reality is that earning's are also lower in Tx. and most Southern states. The claim that cost of living being lower is failing. The price of a car, house, rent, food are becoming the same across the nation.
VERY far from the truth. For example, my oldest child rents a 692 sq ft studio apartment plus one parking space in the building's underground garage in Chicago's North East Loop for $3,200/month. That's $38,400/year for a less than 700 sq ft studio apartment.
Quote:
Tax's are being pushed lower to property owners. More item's are being taxed as property here in the south then I ever saw in NJ. I still see lower Real Estate taxes, but I now pay more in State taxes and fees then ever (GOP for taxes).
You have NO clue. I've posted a copy of my last IL real estate tax bill before I moved out of IL, here it is again. Look at the various taxing bodies/districts. 19 tax line items:
Maybe that's the case in Illinois based on your example and most certainly CA with the income and sales tax. I don't think taxes are too much of a burden in MA comparatively. I think the people in their state should pay for their schooling, their roads, infrastructure, their welfare, etc. Each state should be responsible for their own and that's going to cost money. That's a different thing than your example, which has an inexpensive house that was taxed to high heaven. Seems like the government is trying to recoup on monies because it's a depressed area? I don't know. Here, it wouldn't be the tax rate at issue, but the cost of the house instead. That involves other economic factors that are outside my scope. That's the issue. It's the COL-cost of property, childcare, food.
No, it's because so many local and county government agencies PLUS their pension funds all have their hands in taxpayers' pockets. I just posted a link to my last (before I moved out of IL) IL real estate tax bill. It's interesting to say the least.
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I don't know what the solution is. There must be a way to control that market so it doesn't keep spiraling out. Maybe the resale of real estate should be capped at a certain percentage (adjusted for inflation of course)? Regulation is needed.
Local taxing bodies are dependent on ever increasing property values to fund their never-ending money grab from taxpayers. .
No, it's because so many local and county government agencies PLUS their pension funds all have their hands in taxpayers' pockets. I just posted a link to my last (before I moved out of IL) IL real estate tax bill. It's interesting to say the least.
Local taxing bodies are dependent on ever increasing property values to fund their never-ending money grab from taxpayers. .
I think your state of IL and a few others like NJ fall under this charge, but when you look at the tax rates of the top 10 highest property tax rates in the US it's a mixed bag of red and blue.
Were you involved in your local community? I am starting to just get involved in my own small town. My tax bill most certainly doesn't look like yours, but I also do not have a million dollar home either. My community, including myself, just voted on an override for our school district given the covid crisis. It has to be done. I just don't see them reaching into my pocket unnecessarily. Or do you think that is naive? If so, what specifically do you have in mind?
Further, homes in south Jersey don't have the same outrageous property taxes compared to those homes close to NYC and million dollar dwellings. It's really the cost of the home that is the problem. That is what needs to be addressed. Why is property so expensive? Sure, I can understand competitive markets, but it is a bit of a racket. We saw that with the last recession. Again, that needs to be regulated and the more I think on it the more it looks like it would solve a lot of these complaints.
And who would lose out? Real estate investors maybe. Or those who are looking to flip or take advantage of chaotic housing markets. I think that would be an ok sacrifice.
I think your state of IL and a few others like NJ fall under this charge, but when you look at the tax rates of the top 10 highest property tax rates in the US it's a mixed bag of red and blue.
Were you involved in your local community? I am starting to just get involved in my own small town. My tax bill most certainly doesn't look like yours, but I also do not have a million dollar home either. My community, including myself, just voted on an override for our school district given the covid crisis. It has to be done. I just don't see them reaching into my pocket unnecessarily. Or do you think that is naive? If so, what specifically do you have in mind?
Yes, I was involved, but for reasons you wouldn't expect. Here's our family's story of local community involvement:
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Originally Posted by InformedConsent
OMG, yes! My kids were in one of those very rare of animals, a 3rd-8th grade magnet school within a school program for the profoundly gifted. Out of a K-8 total district enrollment of about 18,000, each of those grade levels in the magnet program had anywhere from 6-12 students. That's it. 0.4% of the students at each grade level, at the most.
In high school, that was unnecessary, as placement tests placed each student appropriately and my kids' high school offered 21 different AP classes, mostly in Math, Science, History, and English/Literature. The only issue we had was my kids ran out of high school math (including AP classes) before earning the 3 years of high school math credits (Algebra and above) required for high school graduation in IL. I changed IL State Law to unshackle the restrictions the ISBE (Illinois State Board of Education) placed on highly achieving students by refusing to count high school credits earned before 9th grade. In one of the most contentious ILGA sessions, ever, I got a unanimous yea vote for this:
Think about that for a minute... The ISBE had NO intention whatsoever of encouraging highly able students, and actually penalized them for excelling. That's the idiotic world of public education in which we live.
It's a complicated issue, so feel free to ask questions if you have them.
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Originally Posted by Jax_G
Further, homes in south Jersey don't have the same outrageous property taxes compared to those homes close to NYC and million dollar dwellings. It's really the cost of the home that is the problem. That is what needs to be addressed. Why is property so expensive? Sure, I can understand competitive markets, but it is a bit of a racket. We saw that with the last recession. Again, that needs to be regulated and the more I think on it the more it looks like it would solve a lot of these complaints.
And who would lose out? Real estate investors maybe. Or those who are looking to flip or take advantage of chaotic housing markets. I think that would be an ok sacrifice.
Who would lose out? Any local/county government agencies that tax based on property values. So obviously, what you suggest will never happen.
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