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Archive → November 13th, 2016

Illinois 1 of 7 states where home values are still below pre-recession levels

Property taxes in Illinois keep going up, but homes themselves have yet to recover their value years after the housing crisis.

A new study found that Illinois homes purchased in 2008, right before the housing-market recession, still have not gained back their pre-recession value. In fact, Illinois is one of only seven states where this is the case. And one reason home values are struggling to increase is because of high property taxes. As property taxes increase, the cost of homeownership also increases, which means taxpayers are able to put less money toward paying for their homes, and homes don’t appreciate strongly. Sometimes high property taxes cause home values to go down because homebuyers do not want to pay a high price on a mortgage if the property taxes are also high. Illinois is taxing the value out of its homes.

This is bad news for Illinois homeowners paying some of the highest property taxes in the nation. Not only are high property taxes a heavy burden on taxpayers, but they also deter other potential homebuyers from buying property in Illinois. Because of this, many Illinois homeowners are struggling to sell their homes, and are stuck paying a high property tax bill in the meantime.

Many Illinoisans also cite high taxes as the reason they want to move out of the state. This is no surprise considering that – in addition to having the highest property taxes in the nation – property taxes in Illinois are also growing 3.3 times faster than median household incomes.

How to bring tax relief

Struggling home values are an example of why Illinoisans need protections from tax increases. Illinois taxpayers need both immediate and long-term tax relief. To achieve this, legislators need to immediately implement a property-tax freeze so property taxes do not continue to increase.

Legislators also need to implement a property-tax cap to limit how much property taxes can be raised on homeowners. A property-tax cap can prevent property taxes from increasing on individual homes or across an area. Also, if a unit of government wants to collect more money than the cap allows, then the government must first receive permission from voters via a referendum.

Legislators also need to implement a taxpayer bill of rights to restrict the government from introducing a new tax or raising existing tax rates. A taxpayer bill of rights, similar to Colorado’s constitutional amendment, would put a limit on how much revenue a government can collect each year by restricting revenue growth to a rate of population plus inflation. Similar to a property-tax cap, with a taxpayer bill of rights, a government also must seek voter approval if it would like to raise taxes above the limit or create a new tax. However, a taxpayer bill of rights applies to all taxes, not just property taxes.

The high-tax environment is hurting both taxpayers’ wallets directly, and also their home property values. Illinoisans will continue to be financially overwhelmed until steps are taken to bring crucial tax relief.

TAGS: property taxes, real estate

Source: Will County News

Illinois lost more than 30,000 millennials on net in 2014

Millennials are refreshingly optimistic about their futures – but unfortunately for Illinois, few young people are building those futures in the Land of Lincoln.

According to Internal Revenue Service, or IRS, data, in 2014, Illinois lost 50,000 more taxpayers – and their dependents – than it gained through migration. Millennials led the exodus. While more than 70,700 taxpayers under the age of 34 moved into Illinois, more than 89,600 moved out. This amounts to a net loss of almost 19,000 millennials in 2014, and more than one-third of the state’s 50,000 net loss to migration across all age groups.

illinois-outmigration

Not only are young taxpayers leaving Illinois, but students are leaving in droves, too. Department of Education, or DOE, data compiled by The New York Times confirm that in 2014, only about 2,100 students came to Illinois from out of state to attend a public university, while more than 16,400 students left Illinois for public universities in other states. This amounts to a net loss of more than 14,300 students to other states. Illinois sends the most college students to neighboring Midwestern states, including Missouri, Iowa, Indiana, Wisconsin and Michigan.

Out of all 50 states, only California had more students leave than Illinois, at more than 17,100. But Illinois had a greater net loss. California also gained more than 4,600 students for a net loss of more than 12,500, while Illinois’ net loss was more than 14,300.

The combined net loss of millennial taxpayers and students to other states in 2014 amounts to more than 33,000 young Illinoisans. And that’s just for one year.

To be sure, this number is not exact. For example, young people entering the workforce straight out of high school who have never paid taxes could move states, and this migration would not be accounted for in the IRS data due to lack of prior tax data. Further, some fleeing millennial students are likely also taxpayers, so they may be counted in both DOE and IRS data, inflating the actual number. The DOE data also only measured public universities, so it does not account for student migration for private universities.

Nevertheless, the trend is clear: Young people are leaving Illinois, and policymakers need to ask themselves why the state is so unattractive to these young people.

The IRS and DOE data are consistent with a recent Paul Simon Public Policy Institute poll, which found that 57 percent of Millennials in Illinois want to leave the state, compared with 47 percent of the general state population.

Illinois needs millennials. According to a Forbes survey, a majority of U.S. entrepreneurs under the age of 30 still believe in the American Dream. In addition, the millennial generation is now front and center in American enterprise. In 2015, it surpassed Generation X to become the largest share of the American workforce. Combined, these factors make the millennial generation particularly fit to fuel current job creation and to cover the state’s tax bill over the long term. Fewer millennials means fewer working-age adults – or fewer taxpayers – to cover the state’s soaring pension burden, which will be a growing problem as more of Illinois’ population reaches retirement age.

If young people are our future, Illinois is in trouble. State policymakers need to correct the policies that could be contributing to this mass millennial departure. Illinois’ anti-jobs policies, crushing tax burden and looming pension crisis make the state uncompetitive and unattractive. Illinois policymakers should heed the grave consequences of a shrinking youth population, and enact job-creating reforms so millennials can not only afford to, but also be proud to build futures in Illinois.

TAGS: jobs, millennials, outmigration

Source: Will County News

This semester has been one for the history books/Not all young people are the same

This semester has been one for the history books.

This semester Turning Point USA recruited tens of thousands of new activists across the country, started over 100 chapters in key states, trained thousands of activists on grassroots activism techniques, and reached over 100 million people digitally!

Without a doubt, Turning Point USA made a tremendous difference this fall moving the dial towards freedom and liberty.

Our troops stormed their campuses working relentlessly to convert new minds, challenge the administration, register their fellow peers to vote, and push back against the left on campus!

But this wasn’t something that started a few months ago. This was a machine that was built, grown, and strengthened years in advance.

For a couple years now, we have invested our resources and built an unparalleled pro-freedom machine on campuses across the country.Your belief in our work allowed us to grow our presence to over 1,100 campuses across the country.

All of our success is thanks to the years of planning and strategy put forth by our donors, advisors, and leadership team.

We firmly believe it is time to play offense! We must continue to push the boundaries into the most comfortable liberals enclaves in America.

Please consider a tax-deductible gift to Turning Point USA today. With your support we can grow our reach to new heights!

You helped build this machine. Your support was instrumental, and we’re just getting started!

Best,


Charlie Kirk
Founder & Executive Director
Turning Point USA

Source: Will County News