Posted on 05/11/2018 6:11:34 AM PDT by KeyLargo
Glennon: Statewide property tax proposed by Chicago Fed
By Mark Glennon -
An audible gasp went out in the breakout room I was in at last month's pension eventcosponsored 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, and so on.
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.
(Excerpt) Read more at illinoisreview.typepad.com ...
It would be a good idea to join this Org which is leading efforts for a Universal Property Tax Freeze:
Nope. That’s 1 percent.
It’s better that they give a ‘haircut’ to all the unionized state pensioners
Here in SC, a couple from Illinois moved here recently. They complain constantly about how bad Illinois was, yet they hate Trump, record Colbert and the others every night to watch in the morning, and want government expanded in SC. Cant fix stupid I guess.
People like those should be stopped at the border by any means necessary. They spread the lib virus wherever they go.
All taxes should be reduced.
All government should be reduced.
All. Of. It.
It’s 1% for you.
Florida also has no income tax, while Illinois has a 4.95% income tax.
Tell us how bad you have it again, please.
Cue exodus from Illinois in 3, 2, 1...
Isn’t it amazing how so many highly-paid financial “geniuses” can be so friggin’ stupid?
And when all those people move away there are more houses available to buy. By law of supply and demand the cost of those ‘extra’ houses will go down. Thus the value at which all houses are taxed at this (initial, I’m sure) 1% tax will go down. Thus the state’s tax revenues will go down. So of course the politician’s solution will be to raise the Percentage. And the cycle repeats and spirals out of control. Welcome to Venezuela/East St. Louis.
Oh my gosh. Thank you.
Lol. Ok forgot about that little nugget. Oh man I stink at math clearly.
“We here in the Gay State (Massachusetts) learned two things long,*long* ago.
1) There’s no such thing as a “temporary” tax.”
About 40 years ago we moved to our current home north of Gay Frisco. We had lived in the Midwest and East Coast were toll roads and use taxes lasted forever.
The original land owner, who turned his land into a nice cul de sac and a homeowners association.
We were invited to his annual Christmas party for the local homeowners.
He was a retired Marine officer, who pretended to be a conservative. His true tax and spend behavior became clear after a couple of glasses of local vino.
He had his 2+ glasses of wine, and he knew that prop 13 was a sure bet on permanently limiting our property taxes as long as we owned the property. He was livid that home owners across California were saying no increases on the taxes on our homes besides the limits on Prop 13.
He was no longer the polite retired Marine officer, his true belief in life was tax and spend at all levels and he was spouting his tax and spend bs.
Sizing up the local opposition to increasing our property taxes, he started pushing toll taxes on bridges, roads and other user services as the temporary way to bring in money after Prop 13 went into effect.
He was swaying some of the neighbors until my normally quiet wife said in a loud voice, “BS! Name one toll in California or any other state that has ever been stopped after the tolls were started.!”
She knew one of the property owners was his sister, and she was a member of the Golden Gate Bridge board of directors.
Also, he was a director on another toll bridge.
He said that was besides the point and the new tolls/use taxes would be only temporary.
She told him, he knew that he was lying, and that tolls/use taxes never stop.
Needless to say our relations with him were not great after my wife destroyed his tax and spend gimmicks via tolls and user taxes.
A few years later he died and his sister took over as the leader of the local homeowners unit. She and my wife became fairly good friends. She said her brother was a bully, and my wife was one of the few people who ever stood up against him and won. She concluded that the bridge tolls would never go away as most of the money went to the counties/cities in the area. Those political units were addicted to the money they got from the tolls each year. She fought a losing battle every year getting enough money to maintain the Golden Gate Bridge from the real liberals on the board.
30+ years later. My wife is still correct, and we still have tolls on every bridge in the Bay area.
Wow. Guess makers ain’t bugging out fast enough.
The exodus of makers from IL has been going on for some time. But this would turn the torrent into a flood.
EXODUS
How would you like to pay the tax on some Illinois farm land?
The 1/2 of the Fed’s mission to control - stimulate &/or depress the economy - which leads to it assuming IT is responsible for all things economic - needs to be repealed, and leaving it with “sound money” policy roles only.
Whether or not cities or even the state of Illinois must default on their debt obligations should be none of the Fed’s business. Fixing that question needs be left to the Illinois taxpayers to elect people who will correct fiscal imbalances, instead of passing the buck to the future year after year. Suggestions for that need to come from independent economists who have no role or stake in government policy & that includes the Fed.
We just sold land that was in the family since 1862 in Illinois on account of this threat.
I guess they want more people leaving.
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