While Illinois’ total population grew slightly last year, many areas of the state experienced population decline. People moved out of state from half the counties.
Most neighboring states are gaining residents from people moving across state lines. Even of the states losing people, Illinois is losing at a significantly faster rate.
Members of the Illinois Senate Pensions Committee heard from pension administrators and government unions about the need for more benefits from retirement systems that are already broken. The Illinois Policy Institute was there, too, to represent taxpayers’ interests.
Of the states most Americans are moving to, 4 of 5 have a flat or no income tax. The states losing the most residents? There again, 4 of 5 have progressive taxes. Illinois’ flat tax is an advantage it should keep.
Pension experts projected state lawmakers’ plans to drastically expand benefits for newer employees would add $60 billion to the state’s pension liability. Illinois is already $143.7 billion in the pension hole.
The Illinois Constitution currently requires income taxes to be imposed at a single, flat rate. A new bill filed in the Illinois General Assembly would allow for income to be taxed at varying rates, making it easier for lawmakers to raise rates.
The “millionaire tax” was being OK’d by Illinois voters, with 60.3% voting “yes” on the advisory question about raising taxes on residents earning over $1 million a year to fund property tax relief. The problem is, millionaires would not be the only tax targets.