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Posted on 05/13/2018 7:13:14 AM PDT by blam
An audible gasp went out in the breakout room I was in at last month’s pension event cosponsored by The Civic Federation and the Federal Reserve Bank of Chicago. That was when a speaker from the Chicago Fed proposed levying, across the state and in addition to current property taxes, a special property assessment they estimate would be about 1% of actual property value each year for 30 years.
Evidently, that wasn’t reality-shock enough. This week the Chicago Fed published that proposal formally. It’s linked here.
It surely ranks among the most blatantly inhumane and foolish ideas we’ve seen yet.
Homeowners with houses worth $250,000 would pay an additional $2,500 per year in property taxes, those with homes worth $500,000 would pay an additional $5,000, and those with homes worth $1 million would pay an additional $10,000.
Is the Chicago Fed blind to human consequences? Confiscatory property tax rates have already robbed hundreds of thousands, maybe millions, of Illinois families of their home equity — probably the lion’s share of whatever wealth they had.
Property taxes in many Illinois communities already exceed 3%, 4% and even 5% of home values. Across Illinois, the average is a sky-high 2.67 percent, the highest in the nation.
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(Excerpt) Read more at wirepoints.com ...
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Spooking the herd is never a good idea...
Bad weather and high taxes going up fast...what’s not to like? ;-)
They don’t call it the Sucker State for nothing.
At least Texas has no income tax.
But we do need to get rid of the cancer of progressivism just the same and drop our tax rates.
You might want to point out that this is only a starting point. If you consider the trend line....they’d have to double that property tax idea within three years, and double it again in another three years. You could be talking about $10k being added over a decade long. For most folks, there would be no way that you could take a hit like this. You’d start to plan out an exit, and a new job.
Elections have consequences.
I never really needed to get "woke" on property taxes, but I still recall, back in my political days, meeting with some retirees on Long Island who had retired in homes which they had paid off, on which their property taxes were $700 a year at the time of retirement. Their property taxes had since risen to over $6,000 a year, their budgets no longer worked, and 85 year-olds were being forced to move.
The real problem was that, at age 85, they were too old to pick up their pitchforks, tar and feathers .... What the state really wanted them to do was simply to die, so the inheritance tax could vacuum up whatever was left.
One would like to think that those who, after they leave the state, manage to connect the dots between how they voted and why they had to later leave. Unfortunately, there is little evidence that people are able to figure this out, and much that they aren’t. Especially those fleeing California.
This would collapse property values, leading to am economic collapse in IL.
Leftists destroy EVERYTHING that they touch.
Isn’t the fed a PRIVATE organization? With investors? And Not part of the government?
How can they levy taxes?
The “property “ tax is incremental confiscation of the house. They can’t seize it all at one time (yet), as their Marxism dictates.
In 30 years they will have taken the full value of the property while leaving you the upkeep and insurance.
It is a death sentence for those who cannot work any more and who cannot pay.
F*ck you, politicians who gave us this.
Unfortunately, there is little evidence that people are able to figure this out, and much that they aren’t. Especially those fleeing California.
= = = = = = = = = = = =
Typical ‘LIG’ actions.
Move because they want a better life, less taxes etc but in 5 years turn the idyllic paradise they sought out to the hellhole they left, THEN they want to pull up stakes and move again, spreading their grief to yet another state/area.
Used to laugh at all the people from (say) Pennsylvania living/working in Northern Virginia (not necessarily directly for Fed) and moaning about how they miss PA and how terrible NOVA & DC area are.
Every so often have to give them a ‘REALITY CHECK’ and tell them that now they are out of the Military they can live WHEREVER they want so don’t let the door hit you in the arse while heading back to ‘heaven’.
Of course no work, low wages etc etc stop that from happening so STFU and grin and bear it.
OTOH, there is really NO difference from an illegal from Central America working in VA and sending his money back to Salvador than Zeke working in VA and sending his money back to his family in KY... (I shouldn’t have to explain I mean actually, not in a moral or legal sense and based on BOTH are paying witholding and FICA etc etc because Zeke may also be working ‘under the table’)
‘LIG’???? I mean LIB
the ‘older’ I get the smaller the keys get...<: <: <:
Now you all know how the Third Reich began.
When I would complain about government having a great pension, benefits and pay, they would tell me, I should have chosen a better career... now that their pensions have been squandered they will look to me to bail them out... why cannot I win...
You might want to point out that this is only a starting point. If you consider the trend line....they’d have to double that property tax idea within three years, and double it again in another three years. You could be talking about $10k being added over a decade long. For most folks, there would be no way that you could take a hit like this. You’d start to plan out an exit, and a new job.
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Not to mention this sort of tax will kill home sales and collapse home prices as a result.
“Get this, which is part of the Fed’s reasoning: “New taxes wouldn’t affect people thinking of moving to Illinois. While they would have to pay higher property taxes, that would be offset by not having to pay as much for their new homes. In addition, current homeowners would not be able to avoid the new tax by selling their homes and moving because home prices should reflect the new tax burden quickly.”
Holy cow.
Add to that a Sales tax of nearly 10% in Cook County, nearly 8% elsewhere, some of the highest gasoline taxes in the nation, and the income tax and the State of Illinois takes almost 20% of the earnings of a middle class resident.
2 years and we are GONE.
L
I contemplated moving across the border to Indiana from Illinois because property taxes are cheaper in Indiana.
Then I had to factor in the fact that Indiana's State Income Tax is higher than Illinois, vehicle licensing fees are exponentially higher than Illinois, sales tax is higher than the core state tax rate I pay now, and that list goes on.
By the time I was done doing my own analysis of moving to Indiana or significantly downsizing to reduce the property tax burden I was paying of over $10,000 / year for a 3,200 SF house while being an empty nester and staying in Illinois I decided to downsize and stay in Illinois. I moved to a much smaller home of @ 1,900SF and pay about $3k in property taxes now. The savings in property taxes alone pay my new mortgage payment going forward and was a trade-off I gladly made no longer being able to maintain a large home on my own. The fact that I keep way more of my own money is a bonus.
Moving to Indiana would've "saved" me about $2k/year upfront, that would've been eaten up and more by the additional transportation costs to commute from Northwest Indiana into Chicago every day to work. It also would've taken me significantly longer to commute into work and put me further away from family who helps me daily.
Compared to where I moved from, I live in a beautiful country-esque area on a much more efficient train-line that takes me about 35 minutes to get into Chicago to work vs. the more than hour I spent commuting each way from my old home.
I get more than an hour of my life back daily, spend less time commuting, save money, and screw the state of Illinois out of income too. Bonus!
There was just no way it made financial sense to move to Indiana, despite my sincere desire to get the hell out of this crooked and corrupt state.
I plan on moving one more time in about 5 years and that's when I'll leave Illinois, likely for Tennessee, Texas or Arizona when I retire.
As for the rest of your post, you're spot-on. We have the highest sales tax, income tax, gas taxes, property taxes and more in this state and it's quite burdensome to live here. My only saving grace is I work in Chicago where the salaries are high (they have to pay you big time to commute and work downtown) so I'm actually ok. I know so many people who aren't.
If that fat, liberal POS JB Pritzker wins the Governor's office this state is f**ked even more than under Rauner.
Sad, pathetic choices we have here aren't they?
Will someone PLEASE put Mike Madigan out of this state's misery?
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