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Proponents of a push to scrap Illinois’ constitutionally protected flat income tax and add a 3% income tax hike on those earning more than $1 million claim increased revenue could be used for property tax relief.
Don’t count on it.
Analysis shows all new revenue from the tax would likely be consumed by Illinois’ growing pension crisis. That would leave nothing for property tax relief. It would also set up other taxpayers for a much larger income tax hike.
One favorite tactic with groups like this is to just throw everything imaginable at the wall to see what sticks. But there’s zero evidence that lawmakers would use that money for pensions, including in the above “analysis.”
As former Gov. Pat Quinn has noted, the state has a law on the books creating the Property Tax Relief Fund. That’s where the money from the tax hike would go, he says.
And the state of Illinois doesn’t have a “growing pension crisis.” The percentage of the state budget going to pensions has leveled off for years.
* But, even if all the money was used to bring down pension costs, the IPI itself essentially acknowledges that such a move would reduce pressures on the property tax…
Growing pension costs at the state and local levels are part of the reason why, despite a nearly $15 billion increase in annual state revenues since 2019, the typical homeowner’s property tax bill has grown by $756.
🤷♂️
posted by Rich Miller
Wednesday, Oct 30, 24 @ 12:53 pm
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=I don’t get it=
The headline to that IPI piece is “TAX QUESTION ON NOVEMBER BALLOT COULD OPEN DOOR FOR RETIREMENT TAX”
Blame Illinois Treasurer Mike Frerichs for his ill-advised messaging back in 2020
Comment by Donnie Elgin Wednesday, Oct 30, 24 @ 1:06 pm
Given how much the IPI gripes about pensions you would think they would welcome paying pension costs. But they don’t because they don’t want the pensions paid. They want pensions cut.
Comment by Demoralized Wednesday, Oct 30, 24 @ 1:07 pm
These are not serious people.
Comment by Big Dipper Wednesday, Oct 30, 24 @ 1:12 pm
===Blame Illinois Treasurer Mike Frerichs===
So you’re saying the IPI is not responsible for its own nonsensical analysis?
Comment by Rich Miller Wednesday, Oct 30, 24 @ 1:17 pm
==The headline to that IPI piece is “TAX QUESTION ON NOVEMBER BALLOT COULD OPEN DOOR FOR RETIREMENT TAX”==
Lol. That’s a lie too.
Comment by Demoralized Wednesday, Oct 30, 24 @ 1:18 pm
“Sure, there would be more money. But we also have debts, so we shouldn’t do anything. Except maybe make moves to have less money.”
How does anybody actually go for this? They’re literally saying nothing.
Comment by Bob Wednesday, Oct 30, 24 @ 1:25 pm
Um, my tax bill went up way more than 750 since,2019
Comment by Billy Wednesday, Oct 30, 24 @ 1:33 pm
Just because that money from The Property Tax Relief Fund is spent on things like local government and education doesn’t mean that the legislature wont redirect other GRF funds spent on those things in previous years. Money is fungible.
The policy has good intent, however it would need more guardrails. I can poke holes in this faster than I can a lockbox made out of a wet paper bag.
Comment by staley Wednesday, Oct 30, 24 @ 1:34 pm
wake me up when they give serious proposals for cutting that do not badly affect the people. they just complain about taxing the rich. oh well.
Comment by Amalia Wednesday, Oct 30, 24 @ 1:44 pm
Apparently IPI uses Ma & Pa Kettle arithmetic.
https://youtu.be/Bfq5kju627c?si=iGW3cpDE4oyuIim6&t=30
Comment by Anyone Remember Wednesday, Oct 30, 24 @ 1:46 pm
I don’t think Illinois Democrats have done enough soul searching that they almost let these guys get the mayor’s office.
Comment by SWSider Wednesday, Oct 30, 24 @ 2:01 pm
===doesn’t mean that the legislature wont redirect other GRF funds===
Read it again.
Comment by Rich Miller Wednesday, Oct 30, 24 @ 2:16 pm
I remember back when IPI or IPI-like group proposed a temporary couple percent across the board increase in the Illinois income tax rate to be used ONLY to pay down the 5 state pension systems. After the pensions were paid down, the tax would revert back to the previous level. That seems more do-able to have a defined use and then drop the increase when the goal is reached. Local property tax while it needs to be reformed, at least has some local accountability.
Comment by Dupage Wednesday, Oct 30, 24 @ 2:35 pm
=Um, my tax bill went up way more than 750 since,2019=
That means your property value went way up. You’re welcome.
=Blame Illinois Treasurer Mike Frerichs=
So the honesty and integrity of the IPI doesn’t matter to you? Duly noted.
Comment by JS Mill Wednesday, Oct 30, 24 @ 2:45 pm
I was under the impression that payments were being made (as they always should have been——to the actual pension funds, not elsewhere) and that progress was being made. Why there needs to be a periodic hysterical crisis over the pensions, I don’t understand. Who benefits from the whipping up of hysteria? Who’s game is it?
Comment by A Wednesday, Oct 30, 24 @ 2:47 pm
=That means your property value went way up. You’re welcome.=
If the value of all properties goes up by the same rate then taxes should only rise by the amount that taxing bodies increase their budgets. My problem is the fact that at least in my area, all properties don’t rise at the same rate. In the case of commercial/industrial properties in my area they hardly ever change at all while residential goes up and up.
In my city, residential properties have seen their portion of the city taxes go up by 39% since 2018 while commercial/industrial properties are paying 15% LESS of the city taxes during that same time. This is all due to the fact residential assessments are up 73% during that time while commercial/industrial assessments have only risen by 6%. How is it that residential values can rise so much but commercial/industrial values can stay virtually the same?
Comment by Aaron B Wednesday, Oct 30, 24 @ 3:07 pm
Seems like the pension committees think we have a pension problem called “Tier 2″. That could either be a little problem or a big problem depending on how it is handled. Yet to be seen.
Comment by Eastside Wednesday, Oct 30, 24 @ 3:08 pm
===Who benefits from the whipping up of hysteria?===
The people whipping it up. $$$ and attention.
Comment by Rich Miller Wednesday, Oct 30, 24 @ 3:10 pm
==My problem is the fact that at least in my area, all properties don’t rise at the same rate. In the case of commercial/industrial properties in my area they hardly ever change at all while residential goes up and up==
This is a question for your county’s board of review. They take appeals on real estate valuations. It must be done long before tax bills are mailed.
Comment by Don't Bloc Me In Wednesday, Oct 30, 24 @ 4:24 pm
IPI does know this is an advisory referendum, right? Let the GA craft a real ballot measure before asserting what might be in it.
Comment by Advisory Wednesday, Oct 30, 24 @ 5:16 pm