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Correlation vs. causation on taxation

Posted in:

* Umm…


When taxes are hiked, people take a hike and taxable income (AGI) goes with them. IL lost record amounts after 2011 tax increase. In 2015, IRS says $4.75B walked. Cost $800M in state/local tax revenue. History says, graduated income tax = BACKFIRE! #NoNewTaxes pic.twitter.com/pc3lfjYlYB

— Governor Rauner (@GovRauner) May 2, 2018


Illinoisans received a 25 percent state income tax cut on January 1, 2015.

* Meanwhile…


Oh look @illinoispolicy is completely misrepresenting Illinois economic history in @CrainsChicago

IPI claims IL's economic recovery "ground to a halt" after '11 tax increase, then rebounded in
'15 after rollback.

Here's IL's actual annual job growth rate since 2010#twill pic.twitter.com/lPIYS7dac2

— Illinois Working Together (@IllinoisWorking) May 2, 2018


That story Jake referred to is here.

posted by Rich Miller
Wednesday, May 2, 18 @ 3:39 pm

Comments

  1. That $2B decrease in AGI was just Pritzker deciding to move less stateside. /s

    Comment by cdog Wednesday, May 2, 18 @ 3:42 pm

  2. If taxes are hiked, will Rauner take a hike?

    Please?

    Comment by Ed Higher Wednesday, May 2, 18 @ 3:54 pm

  3. “When taxes are hiked, people take a hike”

    Most people don’t move due to taxes. They move for: jobs, to be closer to family members, better health environment.

    Comment by Mama Wednesday, May 2, 18 @ 4:12 pm

  4. I wonder if it’s ever crossed Bruce Rauner’s mind that maybe some people leave Illinois because of him. I’m way to stubborn, but not everyone is.

    Comment by James Knell Wednesday, May 2, 18 @ 4:14 pm

  5. Rauner sees absolutely no good ever coming out of the public sector. Therefore any taxation is bad and unnecessary.

    He is a cancer on civil society and democratic principles. Why does he even want to a part of the government he hates so much?

    Comment by don the legend Wednesday, May 2, 18 @ 4:16 pm

  6. Bill Gates allegedly just bought a house in Chicago. Make of that what you will.

    Comment by JoanP Wednesday, May 2, 18 @ 4:16 pm

  7. Since the majority of the electorate is innumerate they will believe what they want to believe anyway.

    Having a governor saying our state stinks every chance he gets for 3 years, on the other hand, is great for business.

    Comment by Lefty Lefty Wednesday, May 2, 18 @ 4:18 pm

  8. Rich: No, if taxes had stayed the same in January 2015 it would have been a tax increase, remember? So by taxes going down, they stayed the same. That explains everything. I think.

    Comment by Skeptic Wednesday, May 2, 18 @ 4:39 pm

  9. A lot of variables in both views. I think what is important is the types of jobs we are losing. Most studies show transportation and utilities are biggest loses in Illinois. The corporate jobs in downtown Chicago are the Net gain. Outside of NY we still have the most options and futures markets jobs, proprietary traders-the states around us dont have that. Every major bank in the world has a location here because of CME Group and CBOE

    Comment by Silicon Prairie Wednesday, May 2, 18 @ 4:50 pm

  10. 24/7’s “Top 10 Cities Losing Jobs in 2017”
    1. Cape Girardeau, MO-IL
    2. Cheyenne, WY
    3. Danville, IL
    4. Michigan City-La Porte, IN
    5. Portsmouth, NH-ME
    6. Springfield, IL
    7. Bay City, MI
    8. Grand Forks, ND-MN
    9. Decatur, IL
    10. Dubuque, IA

    4 of 10 in Illinois,plus 2 on the boarder. Yet, Chicago just hit a 30 year high in jobs. Brucey needs to do more for Chicago

    Comment by Silicon Prairie Wednesday, May 2, 18 @ 5:07 pm

  11. =Illinois has 852 school districts compared with 130 school districts in Virginia, a state with a very similar demographic makeup to Illinois. The average school district in Virginia serves more than twice the number of students than the average in Illinois, despite similar student enrollment per school. Virginia students also outperform Illinoisans on schooling outcomes. Improvements in education by prioritizing students over administrators through consolidation could yield better educational outcomes and lower the tax burden.=
    Amen.

    Comment by Millennial Wednesday, May 2, 18 @ 5:34 pm

  12. Speaking of Virginia - When I lived there (1974-1979) I p[aid $300 property tax to Loudoun County vs the $1,050 I paid in Buffalo Grove (Lake County side). My Virginia house was 33% more expensive and I had nearly a half acre.
    The income tax was on one page. The rate was 5.75% or 8.75% I forget which. But you transferred your Federal taxable interest over without additions and subtractions. You on;y paid to a County or City, not both. If this was Virginia, Chicago would NOT be part of Cook County. Ir was great place. Unless you are a damnyankee (yes, it’s one word).

    Comment by Streamwood Retiree Wednesday, May 2, 18 @ 5:55 pm

  13. Typo: ” Federal taxable interest” should be “Federal taxable income”. If I was still working, I’d gladly pay 8.75% income tax on only half my salary and not pay the 60% of my $8,000 property tax that goes to school district U-46. (VA funds schools 100% from income tax). And gentlemen, that’s an example of how you can have a progressive income tax without a Constitutional Amendment.

    Comment by Streamwood Retiree Wednesday, May 2, 18 @ 6:05 pm

  14. Both the union - er, IWT - and Rauner are reaching. Here are the national employment numbers and how IL compares:

    2010 0.81% 0.26%
    2011 1.60% -0.58%
    2012 1.62% -0.26%
    2013 1.70% -0.75%
    2014 2.19% -0.69%
    2015 1.93% -0.58%
    2016 1.64% -1.02%
    2017 1.50% -0.79%

    Keep in mind Obama’s 2% rollback of the payroll tax in 2011-12 plays into this. Also, prior to 2010, IL was tanking far worse than the rest of the country, so a recovery was to be expected.

    Bottom line - Bruce has been no ray of sunshine for employment, but his 2017 numbers are not far off from the peak tax hike years of 2013-14 when you factor in national comparisons.

    Comment by City Zen Wednesday, May 2, 18 @ 6:53 pm

  15. Only Rauner could make numbers lie.

    Comment by TominChicago Thursday, May 3, 18 @ 9:03 am

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