|
Using migration patterns between 2019 and 2020, personal finance
website SmartAsset found that only California and New York lost
more residents that made $200,000 or more. According to the
data, Illinois experienced a net loss of 8,044 high-earners
during that period.
The report notes that movement of high-earners can have a
significant financial impact on a state. When a state loses more
high-earning tax filers than it gains in a given year, tax
revenues may decline and the state’s fiscal situation may
worsen.
“Fewer people can generally lead to less economic activity and
shrinking tax bases and that can, in turn, limit state revenue
collections,” Joanne Biernacka-Lievestro from Pew Charitable
Trusts said.
The places with the largest outflow of high-earning households
have some of the highest tax burdens in the country. Illinois
has the 10th highest tax burden in the country at 9.7%.
Florida has the lowest tax burden at 5.7% and gained 20,000
high-earners, the most of any state. Texas was second on the
list, followed by Arizona, North Carolina and South Carolina.
The SmartAsset report said it is worth noting that people in
places with higher tax burdens also tend to get paid more. Most
of the states with the largest outflow of high-earners have
median household incomes of $74,000 or more, well above the
national average.
“It looks like the property taxes are a huge factor for people
wanting to move, because Illinois has the second highest
property taxes behind New Jersey,” said marketing specialist
Mercedes Martinez with the moving website moveBuddha.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
|
|
