Illinois Tax Rate Soars 32%

in #economy7 years ago (edited)

In a shocking turn of events, Illinois passed a shocking bill that increases taxes BY 32%. The simplified story is this, Illinois was on the verge of bankruptcy and in an attempt to prevent this, the state house/senate passed a low to increase taxes by 32%.

In my opinion, this just pushed off the bankruptcy. If I lived in Illinois, if I was able that would be my sign to leave the state as that kills any economic growth... I'm not a financial adviser, but feel like what happened in Illinois is just a starting point and the cracks are starting to spread. Do what you want, but I believe everyone should have at least a little gold/silver/crypto as if the world currencies ever hyper-inflate, this would give you a chance of thriving.

What do you think? Let me know below.

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I had to go Google to get the full story. Personal tax rates increase from 3.75% to 4.95%.

Not as sensational as 32% headline.

Illinois has been spending beyond their means for many years, and making pension commitments they have not funded.

If government can't control their own spending, then taxes have to go up.

Anyone who doesn't want higher taxes needs to vote for politicians that are committed to controlling spending.

Agreed!

Yep, 100% correct

I Absolutely agree. This is very typical behavior for government in general, but especially where the leadership is more liberal. For the last 8 years the Federal government has been living on the credit card and borrowing about 40 cents of every dollar it spends. Illinois and California are perfect examples of this same behavior at the state level.

There is also the gov waste factor...which is why I disagree with liberal more governement stance. Fore example this article: http://www.askheritage.org/how-much-money-is-the-government-wasting/ ....now keep in mind that is just improper payments and vacant lots.

So lets carry this on. When I worked for the governement 10 years ago. I did absolutely nothing but watch movies all day. I made 6 grand a month salary and got 30 days a year vacation time. So I alone wasted 72,000 a year of US tax dollars for 9 years of my life. Now I'm just one in a sea of people doing the same thing, milking the checks waiting for to sign my leave form to take a nice vacation, so when we vote for more government, we vote for more people doing the same thing I did bc its a pretty cushy system.

Now let's take waste even further, end of fiscal year surplus funds and the use or lose policy. So we ordered everything under the sun. Depending on what pot of money the funds were, we ordered art and paintings for the office under the aesthetics and moral fund. For personal funds we all got oh about 400 dollar backpacks and lethermans and the most expensive flashlights (you know, all these things we needed for work). and this is just the beginning. Now, that's just an office of 7 people.

See how all of this is adding up? And thats just me and office of 7 people.

Isn't that true! I worked for government for 8 years and it was the most soul sucking 8 years of my life. I was surrounded by mean lazy people.

The money was wasted on the most useless things. I worked in IT and my boss asked me to price out a $20,000 server and of course a backup for it. This was for a production server that was barely used. It could have been hosted on spare capacity we had on other servers. But homeland security paid for it so if we didn't waste the money they would cut our budget the following year. This is one example of horrible waste.

I left that hellhole and now work for myself. I don't get a pension plan and any freebies like I did as a government worker, but I sleep much better at night knowing I am a productive part of the economy again.

Interesting, that makes sense.

The gov. waste is a very loose system and its heavily abused bc its not monitored and not one office wants to lose that funding so they just waste it on crap. Its a massive problem and every government employee knows this and continues to abuse it.

I agree with your conclusion, but I'm not sure why you're downplaying the headline. This is a substantial tax increase. It is simply putting a bandage on a gaping wound and getting the story out of the news cycle. That's all politicians care about - the news cycle - and its impact on their re-election prospects. It should be cause for alarm.

Used by Mark Twain quite frequently.

"Lies, damned lies, and statistics" is a phrase describing the persuasive power of numbers, particularly the use of statistics to bolster weak arguments. It is also sometimes colloquially used to doubt statistics used to prove an opponent's point.

32% provides an alarming headline.

Reporting as a tax increase from approx 4% to approx 5% is far less sensational, but equally accurate.

WTF did the people of Illinois would think was going to happen it they elected Democrats to almost every public position for 20+ years?

The finances of the state are a complete and total shambles.

Going to take a lot more than this tax increase from 4% to 5% on personal tax rate, to get to a balanced budget.

Before this game is over, I'd be surprised if personal tax rate in Illinois settles below 10%.

And then you can report a 200% tax increase if you want.

That is what it will take to balance the budget mess

Great News! It will push the dollar further into grave.
People can evoid the Illinois tax raise by moving out off this state.

Oh absolutely, I'm personally not surprised to see this, cities like Detroit going bankrupt was just the beginning and people refused to believe it, entire states will be next. This is nothing but a stop-gap measure and this is why I'm personally an advocate of making all public debt illegal because of the damage public borrowing does to an economy.

They're fucking over their citizens big time, also, you made a typo.

the state house/senate passed a low to increase taxes by 32%.

If entire states are now feeling this, it looks like the economy is about ready to finally kick it, ridiculous levels of taxation are just the beginning.

Look at the debt clock.org/It is time to go home with the waitress they way i always do-send lawyers guns and money the s_it has hit the fan--

Is "going home with the waitress " a colloquium that I'm not familiar with?

It is out of a warren zevon song-called lawyers guns and money-he is on david letterman singing it...

What in the world do they waste all this money on? In Illinois you have to pay to drive just about anywhere. The property taxes are high and pay for the schools and local infrastructure. I can't begin to imagine what they waste all the state income tax on. They collect high sales taxes and gasoline taxes. They even tax food. I mean if there is a tax it is collected in that state. And they still need a 32% increase to just make the budget work. Sounds like they need to reconsider what elements are critical and cut everything else. I would leave at that level of taxation.

What happened to Illinois is what happened to Puerto Rico and what's happening in other states, like New Jersey and Massachusetts and such, spend spend spend, free everything, no motivation for people to go out get educated in some form of profession or trade, just sit at home waiting on a check, or EBT card.... that has to stop.
People need to become independent and stop being so dependent on government assistance.
Definitely get silver at these low prices, and get out of the fiat dollar.

Hi, I totally agree with you, sheeple peoplke need to quickly diversify themselves asap.

You cannot eat Gold or Silver, the answer in this kind of situation or if hyperinflation ever became likely is to grow your own crops so you have food to eat and can produce your own clothing. And also barter with/give to others so everyone benefits.

Metals are only valuable because people are happy to pay for them and that's not much different to Bitcoin. But if money became worthless then so too would those commodities. The only difference is cryptocurrencies can be used as a currency but everyone would have to be given some of them first and those who don't know much about them would assume Bitcoin is the one they have to have and wouldn't bother as they may not understand there are others designed for creating economic systems based on aiding others.

We are living in a debt based world, controlled by the banking cartels. The music is going to stop one day--we need to dump the fed and blm --Crypto-gold-silver-lead-food-sounds like a good place to be in the coming few months and years..

Disagree, you can use gold and silver to buy food, look how 1 oz of silver is saving people in Venezuela who were savvy enough to buy silver before their currency (Bolova) went to pot.
they can now cross the border to buy food from the neigboring countries. I last heard, 1 oz of silver could feed their whoile family for a month.

I don't think that stage will come, as long as there is not any crisis in China, China is feeding the whole worls who have the little money.

32% that is an absurd increase, this means that u are literally working for the government. So ridiculous.

32% did not sound practical. Thank you for sharing.

Well, it is not quite a done deal yet. The governor vetoed the bill. The senate quickly revoted to override the veto, but it must still be voted on again by the house sometime tomorrow. Its a mad scramble to push votes for the next 36 hours...

Great post, thx

The corporate tax rate jumped from 5% to 7% also, guess what that is going to do for business growth...last one out of ILLinois turn out the lights!

Illinois next problem is going to be capital flight followed by human migration. In our new globalized world, capital (money, savings, stock, etc) can move very quickly to jurisdictions that treat it the best.

Humans have a harder time with this, but will move when pushed too far.

We're about to see a speed up in capitol flight followed by human migration.

Its another step in a downward spiral. This has been playing out over decades. The amazing aspect has been the elites' ability to extend the day of reckoning. I would have thought we'd have the wall long ago. Don't underestimate their ability to keep this game going for a while longer, but the cracks are certainly getting larger.

taxes will always increase in a debt-based economy