The latest proposal that may get fast tracked and passed immediately is a good-for-nothing property tax freeze introduced by Rep. Michelle Mussman.
Does the additional revenue that comes from a tax increase get cancelled out, in whole or in part, because taxpayers — especially high earners — leave or change their residence? Astonishingly, nobody in Illinois government has attempted to answer these questions and the state has no data, no study, no clue. I’ve asked several legislators from both parties and searched myself, but nothing is there. The anecdotal evidence says the problem is severe. Examples are reported publicly fairly often. Tax planners say changes of claimed residency are now shooting up. A partner at a major Chicago law
The difference in performance between Indiana and Illinois governments is truly difficult to grasp. Indiana has announced a $360 Million surplus that will allow it to give a credit of $111 to all taxpayers in the state. Illinois faces never-ending tax increases and accumulated bills over $200 Billion. Illinois blames the recession. Illinois says it provides superior services. Can anybody still say such things with a straight face? When Indiana Governor Mitch Daniels visited Chicago two years ago promoting his state, I asked him myself what he attributed the differences in Illinois’ and Indiana’s fiscal performance to. Without hesitation,
http://abclocal.go.com/wls/story?section=news/local/illinois&id=8901532
According to a report released today by the Tax Foundation and reported in Crain’s, the state tax burden for Illinoisans moved up two notches to make us the eleventh highest among states. However, the study was based on 2010 taxes and does not include the “temporary” 66% increase of the personal income tax and the increase in corporate income taxes that went into effect last year. Nor does it include the over $200 billion in unpaid liabilities including unfunded pensions, which effectively are tax bills that the state just stuck in the drawer and hasn’t sent out yet.
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