The state of Illinois is in all kinds of financial trouble. For example, they haven’t had a balanced budget in 19 years, the worst credit rating among states, plus sales and income taxes are high and rising. As a result, Illinois residents are currently leaving the state at a rate of 1 every 4.5 minutes. According to a poll by NPR Illinois and the University of Illinois, Springfield: 61% of Illinoisians recently thought about moving out of the state. Their number one reason for considering moving to another state = high taxes. And the number two reason = getting away from the Illinois state government and its policies.
What are the financial problems with Illinois?
- State and city pensions are in death spirals
- Deficits are large and growing
- By most fiscal measures, Illinois is rated at or near the bottom among U.S. states
Chicago is even in worse financial shape than the state so in the last few years they have tripled every type of fee, charge, fine, and tax. Similarly, Illinois Governor JB Pritzker has a new list of tax increases that he hopes will syphon off an additional $7 billion from overtaxed residents. His budget proposals:
- Progressive increase in income tax rates
- Tax on managed care organizations
- Tax sports gambling
- Recreational cannabis tax
- Retail tax hike
- Video gambling tax hike
- Cigarette tax hike
- Plastic bag tax
- E-cigarette tax
- Gas tax hike
- Vehicle registration tax hike
- Ridesharing tax hike
- Streaming video tax
- Beer, wine, liquor tax hike
- Video gaming terminal tax hike
- Cap the exemption on trade-in property tax
- Parking garage tax
- Real estate transfer tax hike
- Electric vehicle registration tax hike
Just awesome. These new taxes (that won’t put a dent in the deficits and underfunded pensions), are sure to attract new residents from other states and keep the currently overtaxed residents from fleeing.
However, Pritzker has other tax issues to defend… (Keep in mind that 4 of the last 10 Illinois governors have gone to prison). Now, Pritzker, his wife, and brother-in-law are under federal investigation for a scheme to defraud Cook County of $331,000 in property taxes. They temporarily removed toilets from a mansion they own before an inspection so that it would be erroneously classified as “Uninhabitable,” hence the media label: Toilet-Gate. So the state is run by a tax cheat who is simultaneously attempting to raise those taxes.