Saturday, December 3, 2022

The Dying State of Illinois on This Day in History

 

Illinois became the 21st U.S. state on this day in 1818. Chicago is its largest city, and the state's capital is Springfield; other major metropolitan areas include Metro East (of Greater St. Louis), Peoria and Rockford. Of the fifty U.S. states, Illinois has the fifth-largest gross domestic product (GDP), the sixth-largest population, and the 25th-largest land area.

That may change.

"European immigrants poured into Illinois in the 19th century, followed by African Americans in the 20th. But Illinois’s popularity is over. Today, more Illinoisans are leaving than moving in. Behind just New Jersey and California, the state ranks 3rd for outmigration...Illinois has the highest effective property tax rate in the nation, paying more compared to the value of their homes than other states’ residents. The state also has the 10th largest tax burden nationally, with the combined impact of personal income tax, property, sales, and business taxes comparatively high...The IRS estimates more than $16 million in tax dollars left Illinois from 2019 to 2020 as residents moved away, leaving less money to rebuild infrastructure, invest in schools, or complete projects that would attract more jobs and people to the state. That’s not the worst of it. The total wealth lost in Illinois’ outmigration tops $8 billion, more than any state except New York." Source

"Most residents leaving Illinois traveled to states with warmer climates where housing prices were significantly cheaper. South Carolina, Tennessee and North Carolina ranked highest for inbound moves nationally...Nearly half of Illinoisans have thought about moving away, citing high taxes as their No. 1 reason...Boasting the nation’s highest tax rates, second-highest property taxes, second-highest gas tax and nation-leading pension debt, it is little wonder why Illinois also leads the nation is losing residents." Source

"And keep in mind that the state also has a gigantic unfunded liability because of absurd promises of lavish pensions and fringe benefits for state and local government employees. It’s almost as if the politicians in Springfield want to make the state unattractive. The bottom line is that Illinois may have passed the tipping point and entered a death spiral. Sort of akin to being the Greece of America." Source

No comments:

Post a Comment