Tuesday, April 15, 2014

Tax Hikes will cause an effect..............

IRS DATA SHOWS CHICAGO PROPERTY TAX HIKE PLAN WILL DRIVE AWAY PEOPLE AND PROSPERITY

Chicago-property-taxes
By Michael Lucci - 
Mayor Rahm Emanuel’s pension reform scheme passed through the General Assembly this week and has been moved to Gov. Pat Quinn’s desk. This plan authorizes Chicago to raise $2.25 billion in additional property taxes over the next decade. Despite this massive tax hike, the city will raise only half its legally required pension payments.
Hiking property taxes will kill jobs, drive away entrepreneurs and force people to flee the city. In fact, people and their incomes are already fleeing in droves.
According to Internal Revenue Service data, from 1992 to 2010, Cook County sustained a net loss of 1.1 million people as a result of migration into and out of the county.
Not only that. The average person who leaves Cook County makes $12,500 more than the average person who enters.

Fleeing_Chicago_table1
Illinois already has the second-highest property tax rates in the country. In Chicago, property taxes are weighted to fall more heavily upon businesses. Business establishments and job creators are taxed at two-and-a-half times the rate of homeowners.
As a result, fewer jobs are created, and businesses and people move elsewhere for opportunity. Businesses have been crossing borders to locate in Indiana and Wisconsin, and people are following businesses over the border.
The loss of personal annual income due to out-migration has been devastating. In current dollars, Cook County has lost $40.5 billion of personal annual income due to people leaving.
Fleeing_Chicago_table2
The Chicago City Council should address the root source of the pension problem, which is political control of worker retirements. Only real reform will provide a secure retirement for city workers and lift the burden of property taxation off job creators and entrepreneurs.
Until real reform is enacted, city workers will be without retirement security, and city residents will continue their exodus.
Michael Lucci is Director of Jobs & Growth at the Illinois Policy Institute

7 comments:

  1. Anonymous4/15/2014

    Any idea how any of this affects the widows?

    What will the widows be left with after pension changes?

    ReplyDelete
  2. Anonymous4/15/2014

    Some quick calculations with a 2012 (pay 2013) tax bill show the CITY's share of the tax bill.

    On a $200,000 home with a Homeowner Exemption, the city gets just $623.24.

    On a $300,000 home with a Homeowner Exemption, the city gets just $942.16.

    The city's share of your tax bill is small, so an increase would not be nearly as burdensome as some have feared.

    Other money from your bill goes to the Metropolitan Water Reclamation District, the Park District, the Bd of Education, the County of Cook, etc, etc.

    ReplyDelete
  3. Anonymous4/15/2014

    hey,hows that democratic party of the small guy working out for you???

    ReplyDelete
  4. Anonymous4/15/2014

    It is really pretty simple...but something the unions and the Democrats either cannot or will not admit. "You cant tax a country into prosperity"

    ReplyDelete
  5. Anonymous4/16/2014

    FIREMEN DESERVE THE MOST MONEY

    ReplyDelete
  6. Anonymous4/16/2014

    Its the principal of it.

    Just like all the sales tax hikes that were temporary.

    ReplyDelete
  7. Anonymous4/17/2014

    has anyone ever asked the city or county to have a forensic audit done by a impartial outside agency???

    ReplyDelete