Anyone that has money and lack of political power. Middle class is a vague term, but currently, a flat % income tax takes evenly from rich and poor, so it benefits the rich.
What will happen now is that IL will increase then 5% income tax to 6% or whatever they have to go meet their needs, and so it will continue to benefit the rich.
Until it gets to a point where the lower income people realize they can make the rich pay more, and vote for marginal income tax rates. That’s when the screws will start getting turned on higher income people.
Once that happens, I would assume anyone with disposable income will have their incomes taxes go up. It only failed 47 to 53 this year, so I imagine it will be soon, but I predict the marginal income tax rates will ratchet up even at a “middle” class household income of $80k+.
And then as more rich people leave, the more the marginal income tax brackets have to be expanded and/or percentages increased.
In any case, there’s no relief until sufficient benefit recipients die, and that stupid COLA is no longer in effect. That is one of the most egregious examples of corruption I have seen. Anyone with high school math can see a 3% annual COLA increase would destroy you unless you had the power to print money.
I’m really curious what this map looks like for last decade instead of just 2017:
Only the extremely wealthy would leave. An average person does not move their state of residence just to save $1,000 on state taxes. That could be disruptive: leaving family and friends, your job, etc. All to save a grand.
The issue with Chicagoland isn't the property taxes currently, it's the uncertainty on the guaranteed raises that will occur. Sure, you can buy a $650,000 house in the city and pay $13k/yr in property tax, but that might go up to $20k/yr at which point you're underwater on your mortgage and spending an extra $800/mo.
I have the money to buy and the day the city files for bankruptcy and restructures their pensions is the day I purchase. But not a second sooner.
