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* Jake Griffin…
Illinois residents making $1.5 million a year [currently] pay less in income taxes than their counterparts in all but eight of the 41 states with such a tax.
But for people making $60,000 a year, it’s a different story. In 24 of the states, those taxpayers pay less than in Illinois.
But that would change if the governor’s graduated income tax plan is approved, Griffin found…
• Illinois filers with incomes over $1.5 million would move from the ninth lowest income taxes among the 41 states to the 35th lowest, meaning their income taxes would become among the highest.
• Those with incomes of $500,000 would move from 11th lowest to 26th lowest.
• Residents with incomes of $150,000 would move in the other direction, from 15th lowest to 13th lowest.
• And those with incomes of $60,000 would move from 24th lowest to 21st lowest.
* Related…
* Property tax task force, relief fund bills pass House committee
* Mark Brown: When it comes to property taxes, Democrats can spell relief — but that’s about it
posted by Rich Miller
Wednesday, May 29, 19 @ 11:38 am
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Previous Post: The new policy appears to be working like a charm
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Read it 6 or so times.
Comment by A guy Wednesday, May 29, 19 @ 11:43 am
How do property taxes compare to other states?
How about sales tax?
How about other regressive taxes?
How does all of our taxation combined compared other states?
Comment by CPA Wednesday, May 29, 19 @ 11:45 am
A property tax TASK FORCE? Ya, let’s give a lot of credence to this.
Comment by Pick a Name Wednesday, May 29, 19 @ 11:46 am
@A guy
Oh good I was worried I was the only one who thought that was badly worded.
To the article. So it does exactly what JB said it would and the richest people in the state are still paying less income tax then 15 other states? Such much drama from Republicans and Lucky Pierre types for nothing.
Comment by HorseShoe Wednesday, May 29, 19 @ 11:50 am
Is anyone aware if the task force is a “blue ribbon” task force? Because if not, then its findings will not be legally binding.
Comment by Red Ranger Wednesday, May 29, 19 @ 11:51 am
–Illinois residents making $1.5 million a year [currently] pay less in income taxes than their counterparts in all but eight of the 41 states with such a tax.
But for people making $60,000 a year, it’s a different story. In 24 of the states, those taxpayers pay less than in Illinois.–
Like Capt. Renault, I’m shocked, shocked, that I did not learn that from the tronc edit board or Descending Vultures scribblings over the years.
Comment by wordslinger Wednesday, May 29, 19 @ 11:53 am
I’ve read it four times and I’m still not sure if I understand it. lol
Comment by LathamPlace Wednesday, May 29, 19 @ 12:08 pm
==Oh good I was worried I was the only one who thought that was badly worded.
To the article. So it does exactly what JB said it would and the richest people in the state are still paying less income tax then 15 other states? Such much drama from Republicans and Lucky Pierre types for nothing.==
The way I read it, there would be six states with higher income taxes on on those making $1.5 million a year, since the nine states that do not have an income tax are excluded from the analysis.
Excluding states with no income tax and then ranking based on the lowest rates seems strange to me, but that is how I read it.
Comment by Nacho Wednesday, May 29, 19 @ 12:12 pm
=Like Capt. Renault, I’m shocked, shocked, that I did not learn that from the tronc edit board or Descending Vultures scribblings over the years.=
Word, you have me worried a bit. I think we need to get you a defibrillator. Just in case the troncies ever do something right.
So those making $1.5 million will pay the 6th highest? Not the end of the world. They will still have a pretty high standard of living. On that $1.5 million less taxes.
Comment by JS Mill Wednesday, May 29, 19 @ 12:13 pm
Word, did you mean that folks making $60k will save a few nickels but continue to pay high real estate taxes, high sales taxes, increased gas taxes, higher car registration fees, etc?
Comment by Pick a Name Wednesday, May 29, 19 @ 12:14 pm
What about the retired guy that makes under $40,000 a year??? These are real number here folks.
Comment by oldhp Wednesday, May 29, 19 @ 12:15 pm
–Such much drama from Republicans and Lucky Pierre types for nothing.–
Not for nothing. The Republicans in the GA need Sugar Daddy funders.
The one for sure who is out there is Uiehlein, and he likes to primary GOP incumbents who don’t walk his line.
Comment by wordslinger Wednesday, May 29, 19 @ 12:15 pm
===What about the retired guy that makes under $40,000 a year?===
He’d pay what he pays now: $0
Comment by Rich Miller Wednesday, May 29, 19 @ 12:17 pm
==in all but eight of the 41 states with such a tax==
That’s a funny way to say 33rd out of 50, because that’s what it is.
==Our plan is simpler and it is a true graduated tax==
So simple it has no married brackets and inflation indexing. Mississippi simple.
Comment by City Zen Wednesday, May 29, 19 @ 12:27 pm
City Zen
Enough with the marriage thing already. Move. On.
Comment by Demoralized Wednesday, May 29, 19 @ 12:32 pm
Interesting - but not meaningful. States vary greatly in how they generate revenue. In addition to income taxes The mix of revenue generators can include intergovernmental transfers, PPRT, sales tax, charges, corporate Income tax and the like.
Comment by Donnie Elgin Wednesday, May 29, 19 @ 12:34 pm
==Move. On.==
Get a divorce? I suppose that wouldn’t hurt tax-wise. Or does it? It’s hard to tell under this “simpler” plan.
Comment by City Zen Wednesday, May 29, 19 @ 1:09 pm
–Word, did you mean that folks making $60k will save a few nickels but continue to pay high real estate taxes, high sales taxes, increased gas taxes, higher car registration fees, etc?–
Let’s take a look at what I wrote…..
….no, I don’t see that at all.
Putting Words in Mouths: Day 2 in Sad and Lame Arguments class at Grievance School.
Comment by wordslinger Wednesday, May 29, 19 @ 1:20 pm
== ===What about the retired guy that makes under $40,000 a year?===
He’d pay what he pays now: $0 ==
Actually, if they fill out line 21 on the IL-1040 like they are supposed to, they would pay $18 in use tax on Internet sales (it comes after all credits) … but a lot of people skip right past it.
Comment by RNUG Wednesday, May 29, 19 @ 1:30 pm
RNUG - Wednesday, May 29, 19 @ 1:30 pm:
== ===What about the retired guy that makes under $40,000 a year?===
He’d pay what he pays now: $0 ==
Actually, if they fill out line 21 on the IL-1040 like they are supposed to, they would pay $18 in use tax on Internet sales (it comes after all credits) … but a lot of people skip right past it.
————–
The Use tax is intended to be for Internet sales and out-of-state purchases of items used in Illinois. But the way it’s written in the tax form (with the estimated use tax owed based on income), it appears that everyone has to pay this. Even someone who’s never left Illinois nor have shopped online during the previous year.
Comment by Leatherneck Wednesday, May 29, 19 @ 1:36 pm
== it appears that everyone has to pay this. Even someone who’s never left Illinois nor have shopped online during the previous year. ==
You are allowed to put zero on the line, and lots of people do. Or you can put the amount you would owe from online buying if you kept track of all of it. For me, it is just easier to use the table.
Comment by RNUG Wednesday, May 29, 19 @ 1:52 pm
=How do property taxes compare to other states?
How about sales tax?
How about other regressive taxes?
How does all of our taxation combined compared other states?=
It is swell.
You against paying bills?
Comment by JS Mill Wednesday, May 29, 19 @ 2:51 pm
Oldhp:
What about the retired guy that makes under $40,000 a year??? These are real number here folks.
*********************************************
If you are retired, you do not have to pay income tax in Illinois. If you are old enough to receive Social Security (at least 62) and still working, only salary would be taxed, retirement income is not.
If you are truly someone of retirement age, not receiving either Social Security or a pension and still just working…WHY????
Comment by Union Thug Gramma Wednesday, May 29, 19 @ 4:07 pm
Because if you work until 70 and then take SS, you get 32% more than if you take it at 66.
Comment by Pick a Name Wednesday, May 29, 19 @ 4:12 pm
OOPs one statement got disappeared…If you are old enough to receive SS and are receiving SS (as in retired), but still working a part time job….the wages are the only thing that would be taxed.
Comment by Union Thug Gramma Wednesday, May 29, 19 @ 4:12 pm
== Because if you work until 70 and then take SS, you get 32% more than if you take it at 66. ==
Last time I ran the tables, it didn’t really matter.
If you are a male and assume a life expectancy of 84 (about what the Met Life tables claim), you get almost exactly the same amount of total money from SS regardless of when you start collecting it. You either receive smaller payments over a longer period of time if you take it at 62, or you receive larger payments over a shorter period of time if you take it at 70, or in between if you take it at 65/66.
The only way you get more total money is if you wait and live beyond 84.
Comment by RNUG Wednesday, May 29, 19 @ 4:20 pm
Pick a Name:
“Because if you work until 70 and then take SS, you get 32% more than if you take it at 66.’
And you have a psychic that can tell how long you’re going to live? I’m not advocating for people to retire at 62, all I was commenting on was the taxes and, if someone is “old”(and I feel old is at least 65), you may want to look at your options. I still consult on some things and pay taxes on that, I sometimes take temp jobs and I pay taxes on that, but my retirement income in Illinois is not taxed and that does make a difference for older people.
Comment by Union Thug Gramma Wednesday, May 29, 19 @ 6:05 pm
If I were looking at places to move, I would look at the total tax burden. That’s the number that means something. For example, Texas has no income tax, but relatively high property taxes so the total tax burden is larger than one would expect (but still pretty low).
Comment by Looking down the Road Wednesday, May 29, 19 @ 7:38 pm
But then you’d be in Texas. Yuck.
Comment by Lt Guv Wednesday, May 29, 19 @ 10:36 pm
I lived in Texas for a year…NONONONO. Yes, they have no income tax, but they also have turned many roads back to gravel cuz they have no money to keep up with upkeep…they also have a horrible outreach program and senior care. My mother moved from IL to TX(cuz my sister lives there)…up here? She received home care for basically free (her social security was $1100 a month which qualified her for home care). In Texas? She had to pay $200 a month…out of $1100..and she paid all of her utilities.
Comment by Union Thug Gramma Thursday, May 30, 19 @ 1:17 am