by Mish Shedlock, The Maven:
Behind the Chatter
Please consider the Chicago Tribune article on the ‘Illinois Exodus.’
An “Escaping Illinois” Facebook group has more than 39,000 followers. One man even wrote a song called “Goodbye Illinois,” lamenting the state’s taxes and political corruption and expressing his desire to leave.
The state has been struggling to keep residents for decades, with more people leaving than arriving since at least 1970. But it’s only in the last few years that the state’s population and that of its largest and most important economic engine, Chicago, have slipped.
In 2018, the state had an estimated net migration loss of 6.5 people for every 1,000 residents, according to the most recent census data. Five years earlier, the net loss was about 3 people per 1,000 residents.
The latest number puts Illinois 49th out of the nation’s 50 states on net migration loss. Only Alaska had a worse rate, with a loss of 11 people per 1,000 residents.
Population decline is also happening in more parts of the state. From 1990 to 2000, 68 of Illinois’ 102 counties gained population. But so far this decade, only nine counties, including Kane, Will and DuPage in the Chicago area, have added residents.
“Well, they’re taxing this and they’re taxing that, pretty soon there ain’t nothin’ left,” Raudys sings as he strums a guitar. “Pension fund is so well run, worst in the nation: well done! I’d really like to stay, but I just can’t pay and pay.”
Absurd Census Questions
The Census Bureau conducts a survey every month that includes questions about why a person changed residences in the previous year. The survey offers a range of possible answers, from foreclosure/eviction to change of climate to “wanted better neighborhood/less crime.”
The Census Bureau does not ask about income taxes, property taxes, or even taxes in general.
Nor does it ask about business climate or any of the key reasons businesses leave. And if businesses leave, the workers follow or are forced to get another job.
The Illinois Policy Institute reports [Despite taxing both sales and income, Illinois has higher property taxes than every single state that does not charge an income tax](Despite taxing both sales and income, Illinois has higher property taxes than every single state that does not charge an income tax.).
Property Tax on Median Home Illinois vs Indiana
Illinois vs Indiana Migration
Nineteen New Taxes
The above article was from 2017.
On May 24, 2019, the Illinois Policy Institute commented Governor Pritzker’s 19 Different Tax and Fee Hikes Total $6.9 Billion.
That is on top of new “home rule” taxes in Chicago and Cook County.
On July 1, the state doubled the Illinois’ motor fuel tax to 38 cents from 19 cents per gallon giving Illinois the second highest gas tax in the nation.
Home Rule Expands
Chicago’s “Netflix tax” expands statewide, with the state charging a 7% tax on users of streaming services, as well as cable and satellite customers. None of these services were taxed at the state level.
Other tax hikes include alcohol, property transfer taxes, parking taxes, and ride-sharing (Uber tax).
The new vehicle registration tax jumps to $199, the third highest in the nation, and electric vehicle registration goes to $250 every year to pay for the gas taxes that electric vehicle owners should be paying but aren’t.