Posted on 11/18/2016 9:32:13 PM PST by george76
IRS data show the average income of taxpayers leaving Illinois surpassed the average income of taxpayers entering the state by $20,000 in 2014, a record loss for Illinois in the wake of the 2011 income-tax hike.
Politicians enacted Illinois’ 2011 income-tax hike during a late-night legislative session in January 2011 and raised the state’s personal income-tax rate to 5 percent from 3 percent. This 67 percent income-tax hike lasted for four years, during which time Illinois experienced record wealth flight.
IRS data reveal what happens when politicians choose short-term tax revenue gains over long-term stability. The short-term increase in tax revenue gained from higher tax rates is offset by the long-term loss of substantial portions of Illinois’ tax base.
...
Illinois has America’s worst differential between the average income of people who leave the state and the average income of people who enter the state. Behind Illinois’ $20,000 income differential were Connecticut with a $16,000 income differential; Kansas at $12,000; and Ohio and Washington, D.C., each with an $11,600 income differential.
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By contrast, the top five states with favorable income differentials were Florida, Wyoming, Nevada, South Carolina and Texas. Notably, 4 of 5 of these states have no income tax, and none of them have a death tax.
Illinois faces limitations in addressing its ongoing fiscal crisis in light of the fact that higher-income Illinoisans are opting out of Illinois residency. Further tax hikes will push these people out even faster. Rather, Illinois politicians have to rein in their spending habits.
(Excerpt) Read more at illinoispolicy.org ...
If Illinois were located in the NY tristate area, everybody would be moving there because taxes are so low.
I know people who purposely moved to Illinois because it’s the state that offers the best welfare benefits.
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Until they run out of other people’s money, and they seem to have crossed that point.
Don’t forget Madigan. He needs go too.
Many doctors and others said much the same.
<< If the Colorado Single Payer medical insurance had passed we would be out of here as well as our business >>
The problem is they bring their liberal voting habits with them to wherever they end up.
The missing variable is that of numbers in and out.
Using average income is good, but if the “ins” are down in other states, but the “in” number way exceeds the “out” migrant number, then larger deficits can occur.
I think CA may be a case in point.
If the election is any indication, Connecticut citizens might be fed up...can't wait til 2018 to see.
I thought that was Minnesota. They run extra buses between the states on days when Minnesota has welfare payouts. Presumably there are busloads of people collecting from both states.
It could be Minnesota now. I heard the Illinois claim years ago.
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