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In case you missed it, Illinois’ individual income tax rate is now 4.95 percent, up from 3.75 percent. For a household with an annual income of $100,000, that means an increase in income tax of $1,200, from $3,750 per year to $4,950 — only another $23 a week to be a working resident of Illinois.
It took our lawmakers two years to come up with this tax and budget package, but they’re wasting no time getting into our wallets.
If you weren’t paying attention to how Illinois got into its mess, maybe the change in your paycheck will make you take notice. And we need to pay attention, because even though this tax will give the state another $5 billion annually, big problems remain.
For one thing, there’s still that $130 billion debt to state employees’ pension funds. For another, there’s that $15 billion bill backlog.
And House Speaker Michael Madigan pushed through this Democrat tax-and-spend plan without having to accept any of the pro-business reforms that Gov. Bruce Rauner hoped would stop job-creators and residents from fleeing to more business-friendly states. What will happen when there are no paychecks left to tax?
An agricultural banker from Philo, a town of about 1,500 residents located just southeast of Champaign, McNeely says he and his wife will be leaving the state he’s called home the past 62 years because he no longer wants to send so much of his hard-earned money to state and local governments that don’t know how to spend it wisely.
“I pay $6,000 in property taxes on my home in a small town,” McNeely told me. “I have no sidewalk, no sewer and no cops in my town. It’s $6,000 for the privilege of living in my own town. I’m ready to get the heck out. I see no change.”
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Even before last month’s 32 percent income tax increase, which will have the average Illinoisan sending about an additional $1,000 annually to fund a wasteful, corrupt state government, the state’s residents paid the highest combined state and local taxes in the country. The unreasonably high taxes in Illinois are leading to the worst population declines in the country because families can no longer afford to live here.
Since last month’s tax increase, I’ve sadly heard from too many others who say they either are definitely leaving or considering leaving because of the tax burden.
Reading through the comments, it seems many folks are considering a move to Missouri. I can't blame them. The tax increase will mean less take home pay for middle class families. Illinois already has some of the highest property tax rates in the country. I don't understand why democrats continue to wage war against the middle class. Illinois is already losing population, the new tax increases will just accelerate the negative growth rate. Most of the new tax revenue will probably be spent in the Chicago area, meaning down state taxpayers are in effect bailing out Chicago and will not be benefited by this at all. Illinois also raised the corporate rate. I can see businesses moving to Indiana and possibly Missouri.
I don't think the income tax increase will initiate any major changes in the Metro East. Income taxes in IL are still lower than MO, and IL does not have a personal property tax. Real estate taxes are generally lower Downstate than Chicago. I've lived on both sides of the river. There wasn't a discernible difference in cost-of-living.
However, Chicagoland is a different story. Property taxes are very high there. I would expect some working-class and poorer households to depart. Although, Chicago is a major talent hub and will continue to attract businesses and professionals that desire a major city. Judging by the cranes I saw a few months ago, I'd say Chicago business is doing far better than StL and KC. I haven't seen a new office tower in StL in decades.
Reading through the comments, it seems many folks are considering a move to Missouri. I can't blame them. The tax increase will mean less take home pay for middle class families. Illinois already has some of the highest property tax rates in the country. I don't understand why democrats continue to wage war against the middle class. Illinois is already losing population, the new tax increases will just accelerate the negative growth rate. Most of the new tax revenue will probably be spent in the Chicago area, meaning down state taxpayers are in effect bailing out Chicago and will not be benefited by this at all. Illinois also raised the corporate rate. I can see businesses moving to Indiana and possibly Missouri.
I just hope they don't move to MO or FL unless they vote Republican. Many of them liberals from IL are moving here to FL. I see their plates all over the place right now and this isn't season. Plus You see Cubs and Hawks stickers on cars that have FL plates. Most seem to be from the Chicago region and northern areas of IL down here.
I don't think the income tax increase will initiate any major changes in the Metro East. Income taxes in IL are still lower than MO, and IL does not have a personal property tax. Real estate taxes are generally lower Downstate than Chicago. I've lived on both sides of the river. There wasn't a discernible difference in cost-of-living.
However, Chicagoland is a different story. Property taxes are very high there. I would expect some working-class and poorer households to depart. Although, Chicago is a major talent hub and will continue to attract businesses and professionals that desire a major city. Judging by the cranes I saw a few months ago, I'd say Chicago business is doing far better than StL and KC. I haven't seen a new office tower in StL in decades.
Yep. Cities like Chicago, New York, Dallas, Atlanta, and LA are usually doing well. People keep moving to NYC despite rising housing and rent cost there and building is always going on.
You also have to keep in mind that the biggest cities here in the US also attract a lot of international business too compared to St. Louis which is more regional. The largest major cities are always going to be more diverse economically.
It seems the mid sized major cities in the less populated states differ a lot though. I mean the cities like Memphis, St. Louis, New Orleans, Milwaukee, Tulsa, Cincinnati type cities have less international and big business ties than the top tier major cities.
As you said, Chicago is a talent hub. Just like NYC, LA. NYC, LA, Chicago are the three biggest cities and the economics are far different and I wouldn't ever compare St. Louis to Chicago economically and wouldn't expect St. Louis to compete with them. Chicago is a different type of animal.
The skyline of Kansas City is worlds ahead of St. Louis even though it's not an old city like St. Louis.
For some reason the modern skyscrapers in St. Louis built in the 1970s to present are not that tall. I've heard it's because they don't want buildings taller than the arch.
I just hope they don't move to MO or FL unless they vote Republican. Many of them liberals from IL are moving here to FL. I see their plates all over the place right now and this isn't season. Plus You see Cubs and Hawks stickers on cars that have FL plates. Most seem to be from the Chicago region and northern areas of IL down here.
I am from Chicago suburbs, just moved to St Charles two months ago. Most of Chicago is democratic. A lot of the suburbs aren't, I should say weren't. With Chicago getting worse, the dems move into and overtake the suburbs and thats when they start to turn. Yes we have sky high taxes on everything. However our amenities are better than MO. I have noticed things here are more run down and dumpy. The Chicago area has state of the art everything. However, Mo makes cuts and balances the budget. Illinois makes no cuts and just keeps rasing taxes. It does seem that with the recent tax increase or as they call it budget, things might just be start catching up with Illinois. I am waiting to see if the schools open or for,how long they will be be able to stay open.
Most Chicagoans won't be relocating to St. Louis..we are here for my husbands job...Florida has a lot of appeal to chicagians, and a lot also move to Indiana.
I don't think the income tax increase will initiate any major changes in the Metro East. Income taxes in IL are still lower than MO, and IL does not have a personal property tax. Real estate taxes are generally lower Downstate than Chicago. I've lived on both sides of the river. There wasn't a discernible difference in cost-of-living.
However, Chicagoland is a different story. Property taxes are very high there. I would expect some working-class and poorer households to depart. Although, Chicago is a major talent hub and will continue to attract businesses and professionals that desire a major city. Judging by the cranes I saw a few months ago, I'd say Chicago business is doing far better than StL and KC. I haven't seen a new office tower in StL in decades.
I agree that it wasn't discernible in the past, but things are changing. The top rate for Missouri is higher, but it's worth noting that Illinois' income tax is a flat rate. Missouri appears to be headed towards lowering rates. I think it was a smart move for Missouri to tie revenue gains to tax cuts.
The new law set into motion business and personal income tax reductions once the state successfully met specific general revenue gains. Missouri exceeded that level in fiscal year 2017 and hardworking Missourians stand to benefit in the following ways:
Top personal income tax rates will be reduced .1% each year after net gross revenue collections meet or exceed the $150 million mark until the rate is reduced from 6% to 5.5%.
Small business income that is filed through individual tax returns will see a 25% deduction phased in over five years after net gross revenue collections meet or exceed the $150 million mark.
Missourians with an adjusted gross income of less than $20,000 will be able to claim an additional $500 annual tax deduction.
Taxable income brackets will be adjusted for inflation.
As Illinois continues to lose population and business, I think the state will be forced to raise taxes again in the near future because revenue actually collected will likely fall short of the projections. Overall, I think metro east households will have less to spend, and that hurts the STL economy. Even if some families from Illinois do move to Missouri, they will still have to pay IL taxes if they work in IL. If the comments under the Belleville News Democrat article are any indication, IL residents are really ticked off about these new tax increases.
I am from Chicago suburbs, just moved to St Charles two months ago. Most of Chicago is democratic. A lot of the suburbs aren't, I should say weren't. With Chicago getting worse, the dems move into and overtake the suburbs and thats when they start to turn. Yes we have sky high taxes on everything. However our amenities are better than MO. I have noticed things here are more run down and dumpy. The Chicago area has state of the art everything. However, Mo makes cuts and balances the budget. Illinois makes no cuts and just keeps rasing taxes. It does seem that with the recent tax increase or as they call it budget, things might just be start catching up with Illinois. I am waiting to see if the schools open or for,how long they will be be able to stay open.
Most Chicagoans won't be relocating to St. Louis..we are here for my husbands job...Florida has a lot of appeal to chicagians, and a lot also move to Indiana.
A lot of the people from IL down here are retired or close to retirement age in my region and are just working a few more years to save up some cash. Unless you're in the medical industry, SWFL is mostly service based jobs that pay low. Most from Chicago would find the pay and the jobs insulting. That is the biggest complaint I constantly hear from people from up north especially Chicago and the northeast, Indiana, Ohio. Some move down here and want to work a couple more years just to save up extra money but just end up totally retiring when they see how crappy the pay is.
I live in a big sub division that is only half complete and have a number of IL people here. Most seem to be mid 50s to about 70 moving here.
Also, in general Missouri is like that because it's a low tax, southern influenced, conservative state. Hell. a couple years ago voters overwhelmingly rejected raising the gas tax in order to improve funding to repair roads in MO. The politics in Missouri resemble more of Alabama and Tennessee than it does in IL.
A lot of the people from IL down here are retired or close to retirement age in my region and are just working a few more years to save up some cash. Unless you're in the medical industry, SWFL is mostly service based jobs that pay low. Most from Chicago would find the pay and the jobs insulting. That is the biggest complaint I constantly hear from people from up north especially Chicago and the northeast, Indiana, Ohio. Some move down here and want to work a couple more years just to save up extra money but just end up totally retiring when they see how crappy the pay is.
I live in a big sub division that is only half complete and have a number of IL people here. Most seem to be mid 50s to about 70 moving here.
Also, in general Missouri is like that because it's a low tax, southern influenced, conservative state. Hell. a couple years ago voters overwhelmingly rejected raising the gas tax in order to improve funding to repair roads in MO. The politics in Missouri resemble more of Alabama and Tennessee than it does in IL.
Interesting...would you say the Illinois people in your subdivion are from the Chicago area, or the other regions of the State? We are two different animals. Just curious.
Interesting...would you say the Illinois people in your subdivion are from the Chicago area, or the other regions of the State? We are two different animals. Just curious.
I'd say Chicago region and northern IL in general. Most of the ones I know are from the Chicago region.
Once in awhile you will see one from the Southern IL region but most of the people moving here are from the Chicago metro area and maybe places like Rockford. Also the cars you see have Chicago area dealer decals on them mostly.
We have some Missouri people down here, from the St. Louis, Kansas City area but not a ton of them.
It makes sense since Chicago is where the high incomes are in IL and they have more money to move.
Living in Florida is not cheap anymore. The housing prices keep going up down here, but the homeowners, flood insurance, sink hole insurance, especially car insurance will all put a big dent into your wallet. Car insurance is insane in Florida, especially the major cities due to all the drunks and wrecks and uninsured drivers. Property taxes depending on county are outrageous as well down here.
The problem is baby boomers from New England have driven up the prices on everything down here. I can't stand them. People from the northeast have a real chip on their shoulders and are hot headed and pushy compared to Missourians.
Also, Southern IL and Missouri are nowhere near as cold as Chicago as well. I mean the climate of southern IL while it gets cold in the winter it is tolerable unlike up in Chicago. Being from St. Louis I would hate the weather up in Chicago. At least in St. Louis the snow only sticks around for a couple days and you get several mild days in the winter. Chicago it's never ending.
Missouri is one of those border states where it doesn't get super cold unless you're up near the Iowa border like Kirksville.
Overall, I think metro east households will have less to spend, and that hurts the STL economy.
Presumably they'll use the money to maintain roads and schools, which help the economy.
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