Illinois residents will pay nearly a third more in taxes during their lifetime than the average American. You pay almost double what Indiana and Kentucky residents pay.
Illinois residents will pay the 10th highest lifelong tax in the country, more than any other state in the Midwest, according to a new study.
Research by Self Financial Inc. estimated how much Americans would pay in taxes during their lifetime: $ 525,037 was the average or just over a third of their lifetime income.
Illinois residents will pay $ 693,792. That’s 43% of everything you’ll earn in a lifetime.
Illinois residents pay the highest lifelong taxes in the Midwest, almost double what they would pay if they lived in neighboring Indiana or Kentucky.
The states that Illinois residents move to require their residents to pay hundreds of thousands less.
Texans pay about a third less in lifetime taxes than Illinoisians. Florida and Tennessee pay a little more than half.
High taxes were the main reason nearly half of Illinois people were considering an exit when the Paul Simon Public Policy Institute asked that question in 2016.
For the first time in 200 years, Illinois lost population in the decade-long US census, which will cost it another seat in Congress.
Illinois residents will pay $ 195,611 in property tax during their lifetime. If you move to either Indiana or Wisconsin, these property taxes will be about $ 125,000 lower.
While those who leave Illinois can make money, those who choose to stay or not to go will face ever greater pressures. Illinois politicians are responding with higher rates, not a cut in claims, and these higher tax rates are causing more prime working-age residents and businesses to leave for more competitive economies with lower debt obligations and stronger housing markets.
The second highest property taxes in Illinois also discourage potential Illinoisans from buying homes here. Illinois home ownership taxes have grown 3.3 times faster than average household income since 1990. Total state property taxes have outpaced population growth by 14 times since 1963.
This rapid rise in property taxes was driven by the need for state lawmakers to meet the exponentially growing deficits in the nation’s worst pension crisis in Illinois. Government spending on pensions has increased by over 533% since 2000, while government spending on social services has decreased by nearly 15%.
As a result, a quarter of every dollar the state spent in 2020 was used to support Illinois’ pension obligations. This amount will increase to almost 30% of the total state budget in the budget year 2022.
Public pension reform received bipartisan support from state lawmakers and the governor in 2013, but a 2015 Supreme Court ruling means the state and local governments of Illinois can only get through a constitutional amendment.
The pension reform would make it possible to control future cost increases and ensure a safe retirement for civil servants. But more importantly, pension reform can prevent Illinois taxes from pushing more residents into states that have their finances under control.