I sent your article to my financial advisor who works in Illinois. Love to have your comment back.
Thanks for your comment and we appreciate your contacting us to send your article. What they are saying is correct but they stop right there and bring up nothing else. Making everyone think that makes sense.
You can go back and listen to what I said. This amendment is all about Trust. Legislators in Illinois over the years have never done what is in the best interest of anyone but themselves.
They can raise tax rates right now and don’t need to ask anyone. They don’t because they know they will get thrown out of office.
Remember what I said. By passing the Illinois Constitutional amendment the state would be able to tax anyone anything they want.
They could even start taxing residents on their IRA distributions as they pleased.
We are already the second highest tax rate In the country on property taxes. If passed we would be the second highest business tax in the country. And Cook County later this year will be the highest sales tax in the country.We are also #1 in something else also.
The #1 state in people Moving Out of a state.
As for your pension there is no faster way for you to loose it than if this passes in my opinion. The more people that leave the state the less there are left to pay for your pensionRemember, it is not about what black (sic) or brown (sic) or white or green people (sic) pay in taxes. It is about spending LESS not taxing more.
Funny your article says nothing about how much blacks (sic), browns (sic), whites, or green people (sic) are paying proportionaly (sic) for property and sales taxes. That is MUCH more of a problem than the state income tax.
The new tax will bring in about 3.8 Billion in new taxes. The state in various estimates will be short about $10-$13 Billion short next year and every year thereafter.
It is estimated that the tax rate on EVERYBODY in the state would have to be around 9% on EVERYBODY to just break even on what they spend. That gives you some idea how bad off the state of Illinois really is.
If this Amendment was tied to dollar for dollar reductions in property taxes for the poor I would be all for it.
If it was being done to lower sales taxes on the poor in the state dollar for dollar I would be for it.
If was to reduce corporate taxes dollar for dollar for those companies that hired the poor I would be all for it.
This will do none of that.So back to trust. The state needs to spend Less (sic) not tax more. Passing this amendment just will ultimately make things even worse for people living in the state.
There just aren’t enough rich people in the state if they taxed them at 15% to pay the bills.
Look at California. There (sic) top rate is going to 16.8% and they are just in as much trouble as Illinois. Didn’t work there and won’t work here.
Also this is the first year now where more people are moving out of California than moving in. And as you can imagine they are the wealthy moving out not the poor.
There is a good chance in the future that states like California and Illinois May (sic) have to file for some type of bankruptcy if they don’t change their ways.
Hope this helps and go out and vote this year no matter who it is for.
Have a good weekend.
My suggestion is to change financial advisors.
They think there are green people. That raises serious issues for me right off the bat.
They are wrong about population exodus. Recent studies (you can do the googling) show no relationship between people leaving the state and tax rates. There are tons of other factors which apply to Illinois and other states which cause people to move other than tax rates.
Plenty of states that gained population in the last 10 years have more onerous tax burdens than Illinois, including Hawaii and Minnesota. It’s true that of the four states that lost population in the last decade, three are among the top 10 most-taxed: Illinois, Vermont, and Connecticut. But the state that lost the largest percentage of its residents is West Virginia, which ranks only 15th. Meanwhile, the state with the lowest tax burden, Alaska, is the 48th most populous. It lost more of its residents in the past year than any state besides West Virginia.
IRA distributions that are part of retirement income are not taxed in Illinois.
Your financial advisor doesn’t know that?
No retirement income is taxed in Illinois. They don’t know that?
The legislature already can tax at rates they want. The amendment doesn’t set the rates. It simply ends the practice of a flat tax.
A flat tax is a bigger hurt on working people than the rich. A 4.9% rate on someone earning 50K is a bigger hurt than on someone earning $250K. The current law requires the rate to be flat. A new law would allow a graduated rate.
Property taxes (which retirees do pay) are high because the state can’t raise enough revenue with a flat income tax (which retirees don’t pay). So guess whose taxes are higher now? Retirees. Because they are taxed on property if they have some, and local sales taxes which have to make up the difference for money the state cannot provide.
Your financial advisor doesn’t know that?
The amendment doesn’t solve every problem. Corporations and the rich will still have their tax lawyers finding loopholes.
The amendment change is very targeted and limited. It allows the legislature to enact a graduated income tax so the wealthy can be taxed at a higher rate than a first responder or a teacher.
And Illinois cannot legally file for bankruptcy. The U.S. Constitution forbids it.
Your advisor didn’t know that?