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POLL: HIGH
TAXES NO. 1 REASON ILLINOISANS CONSIDER LEAVING STATE
Illinois Policy Institute/
Joe Barnas
Over half of survey respondents have
considered leaving Illinois, citing dysfunctional government,
disappointing job opportunities and – above all – high taxes.
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 A new poll of registered Illinois voters confirms what many
already know: High taxes are the leading reason Illinoisans consider moving out
of the state.
The 2018 Illinois Issues Survey, conducted by the Center for State Policy and
Leadership at the University of Illinois Springfield and NPR Illinois, found
that 53 percent of respondents have considered leaving Illinois in the past
year. Among them, 39 percent cited comparatively lower taxes in other states as
their “primary reason.” Better job opportunities and a negative outlook on state
government and politics followed as the primary reason for 15 percent and 14
percent of respondents, respectively.
According to the poll, middle-class households especially entertain the idea of
leaving the state. Nearly two-thirds, or 64 percent, of respondents with a
household income between $60,000 and $100,000 have considered moving out of
Illinois. That figure moves to 59 percent for those with an income over
$100,000.
Additionally, 74 percent of respondents consider Illinois to be on the “wrong
track,” while only 14 percent said the state was moving in the right direction.
These results echo a 2016 poll by the Paul Simon Public Policy Institute. The
2016 poll found that, overall, 47 percent of respondents would prefer to move
out of Illinois and high taxes were also the leading reason.
Sinking sand
Illinoisans pay some of the nation’s highest property taxes. Residents often see
little increase in the quality of services despite routine property tax
increases – primarily the result of growing pension costs. Moreover, Illinois is
one of only three states in the nation where owning a home has become a worse
investment since the Great Recession, a phenomenon driven entirely by income and
property tax hikes.
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As Illinoisans shudder at planting roots in the
Land of Lincoln due to the state’s high tax burden, eliminating the
state constitution’s flat-tax protection in favor of a progressive
income tax, as some lawmakers have proposed, would only escalate
fears of further tax hikes. Middle- and high-income households –
those already most likely to consider leaving the state – would face
much higher tax bills under a progressive income tax structure.
Solid ground
Instead of imposing further tax hikes, state lawmakers should
instead work to ease residents’ fears by providing tax certainty and
tax relief for Illinoisans.
The first key element to prevent further tax hikes at the state
level is a spending cap tied to economic growth. The second is a
constitutional amendment allowing for reforms to future,
not-yet-earned pension benefits. If tax hikes are off the table as a
solution to the pension crisis – as they should be, given Illinois’
outmigration problem – lawmakers’ only remaining options are to
structurally reform pensions so that they are in line with what
taxpayers can afford going forward – or allow pension spending to
crowd out government services.
Illinoisans should not have to seek shelter in other states for a
respite from their tax burden. And if state lawmakers move toward
structural reform, they won’t have to.
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