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.
...
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 the Colorado Single Payer medical insurance had passed we would be out of here as well as our business. My personal corporate employment in Colorado would be terminated by me if I could not opt out of commie care and work remotely. I was looking at homes on line that were in Wyoming.
Stupid decisions will bite back.
You’re not alone. I know someone who bailed out of Chicago for Wyoming. Net worth probably in the 9 figures. Can’t sell the IL property even after dropping FAR below appraised value. Nobody with a brain wants to be there anymore. It’s turning into “Escape From Shitcago.”
California pushed my business and my family out for much the same reasons.
Since moving to Texas in 2006, we’ve done better and better. The annual gross of our business has grown an average of 30% per year, for the last five of those years.
It’s not because we changed anything in our modus operandi. It’s because there is more freedom and natural organic financial growth in this environment.
We also work hard, but at least the state doesn’t have a jackboot on our necks.
That is what I worry about. How would I know when to sell my house before it becomes undesirable? A reprieve with the rebuke of prop 69, but so many annoyances like marijuana = good, ammo mags = bad.
Sometimes you just have to take some losses in order to survive. You lick your wounds, learn your lessons and carry on.
Starting a business in a socialist state is never a good idea.
No fed bail out. Let them suffer the consequences of their foolishness.
That is unexpected!
Who would have guessed that, after six decades of using tax policy to change behavior, democrats would find out that tax policy actually changes behavior? I’m shocked!
There be Democrat dummies in that state fur sure.
Time for a real political revolution there, cleaning out a large part of the Chicago corruption machine of Rahm Emanuel and the congressional Marxist/racist extremists like Gutierrez, Davis, Rush, etc.
We live in Indiana at the moment, but have been thinking of moving to Texas.
Interesting data. Thanks for posting.
Plus they have toll roads every five yards or so on the freeway.
That is why there are Democrats talking about eliminating States altogether, so there would be nowhere else to go.
Seems to be a recurring tactic of Leftists, based on the false assumption that if they could only chain down the productive population, Leftits could stay in power forever by redistributing the dollars from the productive slave labor force. Leftists always fail to read history, however. When that situation arrises, the productive class goes on strike. Maybe not an actual strike, but they just shut down, minimize, go dormant.
It’s not just the taxes that are sending the people fleeing from Illinois... it’s the mindset of many of the people living there that affects the quality of life in the state.
The dummies don’t seem to understand that the best course is to exterminate dummies rather than eliminate states
“That is what I worry about. How would I know when to sell my house before it becomes undesirable? “
There are long lag times in culture and, like the stock market, much anticipation of future prices. Markets are exquisitely tuned for this. For example, a company announces it will buy XYZ. The price of XYZ probably already reflects that the buyout was possible. The fact that you are already thinking you need to sell to protect your equity probably means the price you get will already reflect all the negatives you are afraid of.
I know people who purposely moved to Illinois because it’s the state that offers the best welfare benefits.
I have a client who lives here, mostly, but her husband is a top Executive in a huge company - he lives and works in Chicago.
He flies in to Bozeman every weekend to see his wife and enjoy their lovely estate.
I would think he will retire soon.
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