Monday, February 13, 2017

Real or fake news?

Here are four reasons why Illinois cannot weather another tax hike:
  1. Illinois’ battered economy is extraordinarily weak compared to other states.
  1. Taxes are already going up all over the state.
  1. Out-migration has hit record levels – and more taxes will push more people out of the state.
    • Illinois is losing one Peoria worth of people (114,000) each year due to out-migration, the worst the state has ever experienced.
    • Illinois’ state population has shrunk three years in a row due to so much out-migration.
    • A Paul Simon Institute poll finds that the most common reason people want to leave Illinois is due to high taxes.
    • Millenials and prime working-age adults are leaving Illinois fastest. The exodus rate from Illinois is multiples of all surrounding states.
    • Illinois loses population, on net, to every other state in the region according to both Census and IRS data.
  1. The 2011 tax hike did not fix Illinois’ financial problems, and was followed by economic weakness and significant and ongoing wealth-flight.
    • Illinois’ 2011 tax hike raised more than $30 billion in new revenues for pensions. Yet, the state’s unfunded liability grew by $47 billion.
    • Illinois’ average annual loss $2.2 billion per year for 16 years prior to the 2011 tax hike. The loss was $3.6 billion per year during the tax hike. Chicago is the only American city experiencing millionaire flight.
    • The average income of a taxpayer leaving Illinois is $77,000 compared to a $57,000 average income for taxpayers entering Illinois. This $20,000 in-out differential is the worst of any state.
    • Moody’s analysts have thus warned of an Illinois death spiral.

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