After near 43 years of residency, my wife and I are in the process of departing Illinois, for we are convinced that taxes will dramatically increase in coming years.
Income tax rates will dramatically increase to fund the constitutionally mandated retirement programs for public sector and union employees. The unfunded obligations for state pension funds alone are already well over $ 130 billion.
Spending on new programs will likewise drive the increase in taxes. Progressive politicians who are running for office (and the current Republican governor) are actively promoting costly new programs, e.g., taxpayer-subsidizing of Medicaid abortions, state-level funding of schools, the introduction of a universal health care option, the taxation of retirement accounts, and new infrastructure spending. If fully enacted, taxpayers will witness staggering increases in their taxes.
Property taxes will continue their ascendancy toward being the highest in the country, causing the increase in home market values to stall or decline. For most taxpayers, the equity in their home represents the largest asset in their portfolio.
Concurrent with the increase in taxes, the tax base will steadily shrink as individuals and businesses relocate to more tax-friendly locales. This will require the remaining taxpayers to pay even higher taxes to make up the shortfall.
No one should be surprised when taxpayers and businesses decide to vote with their feet and head for the borders.
Relocating is simply prudent for a family that is trying to pay a mortgage and save money for college and retirement while day-to-day living expenses continue to go up faster than take-home pay. It is common sense for a retired couple who want to live out their remaining years with a modicum of financial security and dignity.
While progressive political and fiscal insanity dominates in the state — and Republicans routinely lose their spine when the going gets tough — remaining mired in the middle is more than insane.
— Mark Paulson, Buffalo Grove
