http://www.nytimes.com/2011/01/13/us/13illinois.html?hp
I wonder if Illinoisans are going to be pissed?
Illinois income tax increase of 66% - Is that a lot?
- Thread starter sanjuro
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In the grand scheme of things it only went to 5% for individuals and 7% for corporations though...that seems fairly low compared to some other states. I'm not sure what the rest of the taxes are in that state (property, sales..) though.
I read the increase puts their tax rare comparable to nearby states.
Still, if you like serving in the State Legislature....
66% sounds a whole lot more dramatic than a "two percentage point increase."
Drama FTW!
Drama FTW!
Property taxes in Illinois are 
. People are going to have to deal with the fact that increased taxes and budget cuts are the only way that any of these states, and this country, are going to stay solvent. We've been living on china's credit card way too long.
. People are going to have to deal with the fact that increased taxes and budget cuts are the only way that any of these states, and this country, are going to stay solvent. We've been living on china's credit card way too long.
National solvency is overrated.Property taxes in Illinois are
Iceland sees what you did there.
I was in a small discussion group with a high ranking Senator today. The discussion turned to solvency of states and his mood turned somber noting that IL and CA put us into a Lehman/AIG situation. If you let IL fail, what happens when CA comes next? What if you bail them out? Precedence is set.
And he noted quite clearly, it's not if they fail, it's when. He also mentioned that the Feds are trying to write law around states declaring bankruptcy, but that should take 1-2 years, which will be far to late.
Pretty ominous stuff.
And he noted quite clearly, it's not if they fail, it's when. He also mentioned that the Feds are trying to write law around states declaring bankruptcy, but that should take 1-2 years, which will be far to late.
Pretty ominous stuff.
That was just a form letter dude.
Bah! Bankruptcy isn't so bad. 
Ha. You're so witty... But as most of the other people in PAWN know, I am one of the few (if only) people here that could have access to such individuals, in a small and candid group discussion as this.
Thanks, but try again next time.
Unfortunately there is no bankruptcy protocal for States, which is where it gets really scary.Bah! Bankruptcy isn't so bad.
3% to 5% income tax?? Boo frickity hoo.....
Here in La Belle Province, our combined (federal/provincial) income tax flirts with 50%.....as in the "net" number on your pay stub is half of the "gross" number.
Then, when we actually try to spend the money we DO get to take home, we pay more than 15% sales tax.
And the real kicker, is that we have a provincial and federal sales tax. And the the provincial sales tax in calculated from the subtotal that has the federal tax added to it....so in effect, we pay tax on a tax.
And our roads are in terrible shape.
Illinois gets no sympathy from us up here.
Here in La Belle Province, our combined (federal/provincial) income tax flirts with 50%.....as in the "net" number on your pay stub is half of the "gross" number.
Then, when we actually try to spend the money we DO get to take home, we pay more than 15% sales tax.
And the real kicker, is that we have a provincial and federal sales tax. And the the provincial sales tax in calculated from the subtotal that has the federal tax added to it....so in effect, we pay tax on a tax.
And our roads are in terrible shape.
Illinois gets no sympathy from us up here.
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healthcare isn't cheap.
When you factor in all taxes (State & Fed income, sales, etc.), fees, 'fines' (see parking tickets and meter rates), etc California is near 50% if you own a home. A touch less if not.
We are taxed more than enough to pay our share. The problem is that we don't get our share.
Protocol... funny. You just quit paying creditors. That's how it works. Simple "protocol"...
Spelling has beat me this morning.
The problem with one state not paying creditors is the domino effect. If one state stops paying, what benefit is their for other states to pay their debt? The rates municipalities will need to pay in interest will go vertical.
That being said, if high municipal rates are what it takes for states, counties, and cities to stop deficit spending, so be it.
Doesn't sound too bad to me!
The only problem with this is all of the people (leeches) dependent on the system. Without support, what happens to them?Doesn't sound too bad to me!
I still stand by the position that if you are on govt support, but can afford to have more kids and buy things like designer clothes and Apple products, you are not poor but stupid. Using this logic, they should not be on the public teet.
Some might argue the "stupid" if they've figured out how to maintain a nice standard of living (Apple products, 42" LCD TV, $175 pairs of jeans, 22" rims, etc) on the "teet".
Oh god Joker, you so important.
I'm not, I just happen to have really good access.Oh god Joker, you so important.
Let me re-phrase that:
You are stupid for blowing all of your 'extra' cash on material isht, rather than improving your situation. So that you can afford that crap, AND other nice stuff.
But then again, our media and educations only provide for the here and now. To hell with this future planning isht.
Delerium tremens?
Seriously?
I celebrated New Years with some of that! So good.
I celebrated New Years with some of that! So good.
Let me know what tax rate you'd be comfortable with. We're changing our entire tax code to the "suggested donation" style of things, with people only sending in what they feel is fair. You know, like museums... As has been noted before, we're almost at a historical low for federal tax rates, and I can guarantee that state taxes haven't gone up *that* much.
We have so many deductions these days, from education interest to child subsidies to home mortgage interest to energy subsidies... Even the top 1% only paid on average 19% effective income tax rate.
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=456
And yet we all want services. We want the biggest military in the world ($800b/year, thanks Republicans!!) as well as a social safety net for our citizens (thanks Democrats!). And then we want roads to drive on, farms to be subsidized, DEA agents to keep us sober, ATF agents to keep us sober, safe *and* smoke free, etc.
If we want services, we have to be prepared to pay for them. Unfortunately *both* parties have spent like drunken sailors, and *both* parties have given tax breaks to all Americans. We're paying far less in taxes now than we were in the last 10 years, and yet people keep complaining that they're overtaxed... Either they're not paying attention to what they're actually paying, or they have very short memories.
Two or even 2.2% is not 66%. Classical example of innumeracy.
Did I also mention that mortgage interest is NOT tax deductible here?
let's not forget about our current administration on that "biggest military" point you made there (largest ever for 2011).
many of us receive very little in the way of services rendered by our government.
There is no coherency in the way that which our money is collected and spent. Raising taxes is lunacy at its core, unless you like working for free and participating in the collapse of our real economy.
The Shlt List:
Federal personal income tax 15%-35%
State & local income taxes 2%-10.5%
Sales tax 5%-9.25%
FICA 7.65% (15.3% with employers match tax liability added or 15.3% if you are self employed like myself, part of which is deductable for fed income tax thanks uncle)
Federal corporate income tax share 3% (estimate)
Property tax 1%-2.7%
State Fuel/gasoline tax 0%(Alaska & several others)- 6%+(California & a several others)
Cigarette tax. About 82% of what consumers pay for a pack of cigarettes (average cost $5.15 - including statewide sales taxes but not local cigarette or sales taxes) ends up going to the government in taxes and other payments rather than for the cigarettes.
Gift/estate tax 35%-55%, an additional 5% for exchanges over $10,000,000 60% total on those large sums.
Other 5%-7% indirect taxes: misc. fees, misc. business licenses, communications fees, toll roads & bridges, public parking fees, DMV fees and others too numerous to mention. Estimated.
do the math, there's been plenty of money at there disposal for many decades now, but would still be bankrupt if it wasn't for put ins from other countries.
With our current military budget proposal for this year set at $1.6trillion out of the $3trillion total, its comforting to know that as much as 50% of our tax money is being spent so wisely while the real needs (education, infrastructures, poverty, health, etc.) of this country are ignored and portrayed as a burden to the national budget.
If the company running the books cant make it work with these kinds of revenues and budgets, the company needs to be replaced.
Exactly. I'm not a numbers guy so I don't understand how a 2.2% increase in personal taxes and a similar increase on business equals a cross the board 66% increase. Anyone talk me through this?
i think the number game they're playing here is this: 2/3 (or, 66%) of a 3% tax is 2 pts. that's how they get to 5
so, if you paid $3k/yr, you'd now pay $5k, or 66% more than prev year.
bingo
Driving on my interstate, maybe 50miles a month at the most, is more than paid for with my $425 per 2yr fee for an 11yr old pickup truck and my $89 per 2yr fee for a 1988 suzuki sidekick.
I do not fly, haven't for a long time.
No medicare what so ever, never have never will. Part of being self employed with no line item to pay for a $1200 a month family rate.
I wouldn't drink municipal water if I was paid to do so... distilled by the 5gal purchase is the only way I consume, over 10 years now on that program. My city water is paid for on the monthly bill I send them, and it's not at all cheap in my town.
I ride chairlifts, not elevators.
Motor vehicles? see above DMV comment, and also more than covered in california's massive fuel taxation section.
So yes... Sir you are absolutely correct in saying, it is "Crap" for some people who don't milk the system dry.
Federal income tax paid is *not* 15-35%. Not even close. More like -6.6% to 19%. Probably less by this point since we've had several tax cuts since the 2006 numbers I pulled. You know, effective tax rate vs actual tax brackets.The gift/estate tax is nowhere near 55%.
But hey, keep throwing out random (and incorrect) numbers, I'm sure it makes you feel better.
Not even close, considering those fees also go for local road upkeep and maintenance.
Let me know how paying cash for your medical costs goes in your old age. If you have insurance once you retire, it'll only cover what Medicare doesn't. So unless you're paying cash for everything, you'll have Medicare. And SS.
Although if you rip up those SS checks and send them back, be sure to take pictures for us!!
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