Posted on 05/22/2018 6:43:17 AM PDT by Diana in Wisconsin
If it weren’t for Chicago politicians and "experts," Illinois would be a great place to live. I grew up just north of Chicago, and it’s a shame to see how much worse the “Land of Lincoln” has become since leaving. Many other Illinois residents have left the state in the last few years, more than any other state in the country.
With this latest report that three Chicago economists have proposed, the overtaxed populace of Illinois — whether they stay or try to leave Illinois — should pay increased property taxes in order to fund the State of Illinois’ “very large unfunded pension liability.”
By the way, Illinois already has the second highest property taxes in the U.S. as of April 2017 (2.13 percent), only trailing New Jersey (2.31 percent). The three authors of the proposal — Thomas Haasl, Rick Mattoon and Thomas Walstrum — say that “the tax rate required to pay off the pension debt over 30 years would be about 1%.”
That doesn’t mean they want to lower Illinois property tax to one percent. It means that they’re suggesting an additional one percent on top of the already high rate. The increase would make Illinois’ property tax the highest in the country by far.
What’s even more telling is how the authors of the proposal say without saying that the new property tax would dictate how much people who want to get away from high taxation by leaving the state could charge for their home that they would be selling.
According to the proposal:
Current homeowners would not be happy about this, but it would be a good result for the Illinois economy. That’s because the 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.
Basically, Illinois residents attempting to sell their homes and move to another state would have to drop the price of their home in order to compensate prospective buyers for the increased property tax.
The proposal even admits that people would have a tough time paying the increased tax rate:
Our calculations suggest that, even under the best-case scenario, the additional tax bill is quite high, and some households would certainly struggle to pay it. But given the choice between paying off the debt via higher income, sales, or property taxes, we maintain that the property tax is the best of three painful options.
But the authors of the proposal simply don’t care about the “pain” they cause residents as long as Illinois can pay off the pension debt that they created.
Perhaps the most egregious statement in the whole proposal document is the very last sentence of the proposal’s conclusion.
“In future work, we will explore additional options for spreading the pain, including expanding the base to cover rental and commercial properties, and options for making the tax progressive,” the proposal concluded.
Wow! Illinois is perceived as one of the more progressive states in the country. But now, they are flat out saying that they want to take from everybody, not just the rich.
Economists are a joke.
Potential buyers will not just look at present taxes, they will look at the likelihood of taxes going up in the future.
Would you trust Illinois to maintain the status quo on property taxes?
To ask the question is to answer it.
People deserve the government they vote for.
Only one thing to do in a high prop tax area: If you’re fortunate enough to have a choice, buy the least expensive home you can stand to live in.
How about the people who didn’t?
Even Massachusetts as prop. 2 1/2. In order for property taxes to increase over 2.5 percent the town must hold an override vote. Without this law Massachusetts would be another Illinois, New York or New Jersey.
“but it would be a good result for the Illinois economy. That’s because the 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.“
The “economists” who said this with a straight face should be dragged from their offices feet first, tarred, feathered, and run out of town on a rail.
My property has just now recovered value from the housing crash. Now these morons want to knock it down again.
L
If I remember correctly there was a country in central Europe that, during the 1930’s charged a “GET THE HELL OUT WHILE THERE IS TIME” tax against those of a certain faith trying to get the hell out.
Also, I believe that Castro’s Cuba did the same to people who decided it was a good idea to leave the island “paradise” while the going was not only good, but possible. Today the “get out” tax is approximately 100%.
Let’s see, what political party is it that runs Illinois?
Gubmint employees are worthless crappola to begin with
Now they want to shake J Q Public down long after they quit ???
Gubmint employees are worthless crappola to begin with
Now they want to shake J Q Public down long after they quit ???
In California, the people suffer with the insane, corrupt State government because of RAT voter fraud via their illegals, felons, the dead, people who vote in each county they own a home, and the list goes on. Until the GOP gets serious about stopping voter fraud, we’re screwed! This scenario is being played out in other states as well. Beware!
Everyone I talk to is or wants to leave California. Some are taking pay cuts and taking early retirement to get the hell out of the third-world of California created by Liberals Moonbeam, Pelosi, Feinstein, Becerra, Newsom, Harris, Waters, Bera, et al.
I learned long ago that there is no upper bound to government/bureaucrat/politicians’ greed and lust for other peoples’ hard earned money. Their only constraint is the vague fear that maybe one day the peasant will revolt and shoot them and their JBTs. Hence the constant call for gun control.
I live in Illinois, have to be here at least three to five more years and that's exactly what I did.
Sold my home for which I paid over $10k/year in property taxes in Homer Glen (Will County) and purchased a townhome in Orland Park (Cook County) with property taxes of just over $3k.
Took out a mortgage at 4%, the savings in Property Taxes pay my mortgage payment for most of the year and I invested the money I made on the home I sold in dividend paying stocks.
I get the tax break for the mortgage interest deduction, get to invest the profits from my old home, reduced my state property tax burden and reduced my federal tax burden all at the same time.
Win-Win for me, F the Government at every level.
My property has just now recovered value from the housing crash. Now these morons want to knock it down again.
...
What they are saying is if there has to be a new tax, this is the best way to do it.
It’s rotten no matter what. Crooked Democrat politicians are the cause of this mess. Now people will pay more for government and get the same or less services in return, which is why smart people like Trump and his supporters want less government.
Gosh.
Remember when government employees used to serve the people instead of the people serving government employees?
Looks like what they are saying is, if you cant afford the property tax you will get to dump your house on someone who will pay it
Robber barons
Ayn Rand is looking more and more prescient every day.
The govt is still collecting $10K in property tax on your former home - now owned by someone else
I remember a mayor being elected and although his job did not pay all that much, he got no-work jobs for all his buds which enabled them to get pensions. When I say no-work jobs I mean they literally sat and read a newspaper all day. Word was that they were paying their boss back a certain percentage. So, he cleaned up pretty good after accruing all those percentages. I have a feeling that is what is happening in more places than we can count. Probably Chicago too.
You're right - when you have to ask the question the answer in written in...
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