Illinois outmigration sets a new record: IRS reports that in 2013, Illinois lost more than 81,000 taxpayers to other states – and they took with them $4.1 billion in taxable income
CHICAGO (Oct. 8, 2015) – The rate at which people are leaving the state of Illinois has reached an all-time high, according to an Illinois Policy Institute analysis of new data from the IRS. During 2013, one resident and $50,000 in annual, taxable, income moved out of Illinois every 6.5 minutes. These figures are on net, and are calculated after taking into account all people who moved into the state.
During 2013, Illinois lost more than 81,000 residents and $4.1 billion in annual, taxable income – making 2013 the worst year for outmigration in Illinois history, according to the IRS data. Economics experts at the Illinois Policy Institute, who have been tracking state-to-state migration patterns for the past five years, say the IRS data shows why resistance to reform and a renewed push for higher income taxes is so dangerous to the vitality of the state.
“The new IRS data shows people fleeing the state faster than ever before. People are voting with their feet against Illinois’ legacy of high taxes and poor jobs climate,” said Michael Lucci, vice president of policy at the nonpartisan Illinois Policy Institute. “High property taxes means people are struggling to stay in their homes. Many can’t find jobs because of the state’s poor economy. What’s the result? Residents are looking to other states and seeing greener pastures. This is a clarion call for lawmakers: The way things have operated in Illinois is forcing people to cross the border. It’s not working. We need a dramatic change. It is extremely clear that Illinois needs to change course and enact major economic reforms.”
Here are some key findings from the Illinois Policy Institute’s analysis of the new IRS data:
- Outmigration from Illinois has been evident since the IRS started tracking this information in 1990, but it accelerated dramatically after the state raised income taxes in 2011. The IRS data showed that:
- In 2011, Illinois lost 49,728 taxpayers plus dependents and $2.5 billion in taxable income, on net, to other states.
- In 2012, Illinois lost 66,922 taxpayers plus dependents and $3.8 billion in taxable income, on net, to other states.
- In 2013, Illinois lost 81,117 taxpayers plus dependents and $4.1 billion in taxable income, on net, to other states.
- Illinois lost residents on a net basis to 45 of the 50 states, including every neighboring state and every other state in the Midwest.
- Texas had the biggest net gain of Illinoisans; the IRS reported that Illinois lost 14,739 people on net to Texas in 2013.
- Illinois suffered a net loss of 6,575 Illinoisans to Indiana in 2013
- Illinois suffered a net loss of 4,757 Illinoisans to Wisconsin in 2013
- Illinois suffered a net loss of 2,262 Illinoisans to Iowa in 2013
FOR INTERVIEWS, CONTACT: Nathaniel Hamilton or Joe Kaiser 312-346-5700 x202