Posted on 12/13/2017 7:13:40 AM PST by Beave Meister
If Republicans succeed in limiting the state-and-local tax deduction, one hope is that this could finally inspire a come-to-Jesus moment in prodigal high-tax states. Democrats in Illinois ought to be especially chastened by new IRS data showing an acceleration of out-migration.
The Prairie State lost a record $4.75 billion in adjusted gross income to other states in the 2015 tax year, according to recently IRS data released. That’s up from $3.4 billion in the prior year. Many of the migrants were retirees who often flock to balmier climes. But millennials accounted for more than a third of the net outflow in tax returns.
While Florida with zero income tax was the top destination for Illinois expatriates, the Illinois Policy Institute notes that Illinois lost income and people on net to all of its neighbors—Wisconsin (6,000 people based on claimed exemptions), Indiana (8,200), Iowa (1,900), Missouri (2,000) and Kentucky (1,100). What’s the matter with Illinois?
Too much for us to distill in one editorial, but suffice to say that exorbitant property and business taxes have retarded economic growth. Illinois’s corporate tax rate is 9.5%, and pass-through business owners pay 6.45%. Though Illinois’s flat 4.95% income tax rate is relatively low compared to its neighbors, Democrats have found other ways to clobber their citizens.
(Excerpt) Read more at wsj.com ...
paywall - no thanks.
wait til they start taxing retirement income & SS
Liberal states are quickly morphing into welfare-Obamavilles
Let them sink!
Anyone with money and good sense is leaving these hellholes.
You must have reached your limit. I never pay and I got the whole article.
Makes sense if my limit is zero. I've never read a full WSJ article
This is one reason I’m for the tax plan. I’d like to see all interest deductions and state tax deductions eliminated. And rather than a “standard deduction” increase, I’d rather just see a tax rate reduction.
The less deductions the better. The more flat the tax, the better.
A LOT of Illinoisans retire to Tennessee. No state income tax, drivable distance to see Illinois family, lots of reasonably priced lakeside properties, no income tax.
Californians...the ones who pay taxes...are packing up and moving to NV and AZ.
It’s a slaughter house. Corrupt cops,shitty pizza,cold winters and humid summers.
I truly don’t understand this line of reasoning. You get back about ten percent of your taxes by the local tax reductions. Demonrats don’t care how much you get back. They simply spend. They operate under the assumption that all monies belong to the state to begin with.
They move to other states and vote Democrat. I just had two bug-people from Chicago move in across from me. Two twenty somethings that aren’t very friendly.
You’re absolutely wrong about the pizza....
“This is what happens when you have a state run by corrupt Democrats. They ruin everything they touch”
True. But earlier in the yearthe repub governor vetoed the democrats income tax hike from 3 to 4.95%. Unfortunately, 15 “republicans” gave the democrats enough votes to overide the veto. Democrats and republicans are what we call the “combine”. So Illinois basically lives under the thumb of two organized crime families who have an alliance.
I’ve never managed to see a full WSJ article either. I don’t click on them any more. Ditto for any CBS or CBSlocal sites — but for different reasons. And I’m one of those Illinoisans who’ve fled the state. I lived and worked in Chicago for about 25 years. But there’s no way I’d ever retire there. I’m happily settled in Arizona, which is an oasis of common sense and courtesy compared to Chicago.
A LOT of Illinoisans retire to Tennessee. No state income tax, drivable distance to see Illinois family, lots of reasonably priced lakeside properties, no income tax.
Funny you say that, we’ve been going down to TN to look at real estate, looking for best (conservative) areas for several sibling families including my own. We’re all hoping/planning to adopt and hopefully be adopted in TN zip codes. It just makes no sense to stay and pay vs. retire inspired in a low tax and people friendly state!
Next stop is a look at the Chattanooga area, comments and suggestions which way to branch out to or avoid, recommendations welcome. Spending a week there with only a few set appointments so will use extra time to look at the area. Need to be no more than 2 hrs. to Atlanta or Nashville airport, my preference seems to be drawing me east vs. west but have no reason or idea why? Haven’t even been that way yet!
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