Another good article, but I take exception to the following:
“The proposal’s alleged benefits are built on a foundation of sand, because the pension obligation of today will only grow, but the population of Illinois taxpayers in years to come will only shrink.”
Someone owns the land that is property taxed. Your example covers sales and income tax, rather than the stated property tax. However, as people scramble to leave, property values will likely go down, and they most definitely will go down when the tax comes out, but that loss will be felt by people currently owning the property and not by others choosing to buy the cheaper property.
Good point.
Property taxes can be a double wealth tax to the property owner.
Why is the Fed trying to solve the problem? Shouldn’t it be the state legislature that does it?
Although what happens if the state declares bankruptcy?