For too long, Illinois homeowners have been handed the same
lousy assortment of Valentine’s Day gifts: sluggish jobs growth,
self-destructive spending habits and onerous taxation.
In turn, Illinoisans are severing their relationship with the state.
Illinois has lost a staggering 643,000 residents to other states on net since
2010, according to the U.S. Census Bureau.
But it isn’t just people. As a consequence of Illinois’ population exodus
between tax years 2010 and 2015, the state lost $3.4 billion in adjusted gross
income to its neighboring states alone, according to IRS data.
Four consecutive years of population decline has caused Pennsylvania to overtake
Illinois as the nation’s fifth-most populous state.
This ought to produce an urgency for reform from state lawmakers. But if
Springfield’s governing habits over the past year are any indication, they have
yet to take a hint.
First, lawmakers must understand the causes driving Illinoisans into the arms of
the Land of Lincoln’s neighbors. Primarily, according to Illinoisans themselves,
the answer is blunt: taxes.
Among Illinoisans polled by the Paul Simon Public Policy Institute in October
2016, 47 percent wanted to leave the state. Among these respondents, the study
found, “taxes are the single biggest reason people want to leave.”
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Property owners in the Prairie State are especially
strained under the weight of the state’s punishing taxes. Illinois
homeowners see some of the highest property tax bills in the
country. From 2008-2015, families watched property taxes grow six
times faster than their incomes. Still, lawmakers didn’t let this
stop them from pushing through the largest income tax hike in state
history in July 2017.
But the July tax hike will only inflict further pain on Illinois’
already struggling economy.
Being asked to foot the bill for spending that lawmakers don’t care
to control has proven too tall an order for Illinois taxpayers.
No household spending recklessly beyond its means can remain above
water for long. State lawmakers should take that lesson to heart.
A smart spending cap that ties growth in state spending to growth in
the state’s economy would restore fiscal discipline while allowing
Illinois to get its finances in order. This could provide a path for
reductions in Illinoisans’ tax bills.
Provided lawmakers are willing to consider sensible fiscal reforms,
2018 could be the year Springfield renews its vows to taxpayers.
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