The TRUTH Behind the Illinois MASS EXODUS

Summary

In this video, the creator delves into Illinois' economic struggles, highlighting its high taxes, corrupt government, and regulatory burden. Despite neighboring states with similar weather, Illinois is losing residents due to exorbitant property and business taxes, as well as insufficient public services. The creator contrasts Illinois' challenges with neighboring states' population growth and addresses the impact of remote work and corporate exits on Chicago's economy. Additionally, the video discusses the state's pension crisis, office space vacancies, and the impact of corruption at all levels of government, painting a picture of a state grappling with financial and political issues.

Takeaways

• 😀 Illinois has some of the highest property and corporate taxes in the country, significantly burdening residents and businesses.
• 😀 The state's economic struggles are primarily attributed to corruption and poor governance, rather than factors like weather or outsourcing jobs.
• 😀 Illinois' pension system is a major issue, draining funds from critical public services like infrastructure and public safety.
• 😀 The high property tax rates in Illinois drive people to leave, especially compared to neighboring states like Indiana and Wisconsin, which have lower taxes.
• 😀 The out-migration trend in Illinois is more influenced by the state's economic climate than by the weather, with people moving to nearby midwestern states.
• 😀 Illinois has a high corporate tax rate, and the regulatory environment is one of the most stringent in the U.S., making it difficult for businesses to thrive.
• 😀 The pandemic has caused a shift to remote work, leading to high office vacancy rates in Chicago and its suburbs, further harming the local economy.
• 😀 Illinois is one of the few states that still taxes groceries statewide, and while this will end in 2026, local municipalities may continue implementing grocery taxes.
• 😀 The state has an excessive number of special government units, which add layers of bureaucracy and increase property tax bills.
• 😀 The corruption in Illinois is longstanding, with many state and local officials involved in criminal activities, creating a cycle of poor leadership and mismanagement.
• 😀 The high cost of living and doing business in Illinois is exacerbated by the state's burdensome property taxes and lack of entrepreneurial incentives.

Q & A

Why is Illinois facing a population decline compared to neighboring states?

Illinois is experiencing a population decline primarily due to high taxes, a struggling economy, and severe corruption. These factors have made the state less attractive to residents and businesses, leading to a net loss of people, while neighboring states like Minnesota, Indiana, and Wisconsin saw population growth.

What is one of the main reasons for high taxes in Illinois?

One of the key reasons for high taxes in Illinois is the state's massive public pension debt. A significant portion of tax revenue goes toward paying pensions, which limits the funds available for essential public services like roads, infrastructure, and public safety.

How do property taxes in Illinois compare to other states?

Illinois has the second-highest average property tax rate in the country, only behind New Jersey. For example, a $200,000 home in Calumet City, Illinois, can have an annual property tax bill of $6,200, while a similar home in neighboring Hammond, Indiana, may have a tax bill of just $2,300.

What makes property taxes in Illinois particularly regressive?

Property taxes in Illinois are regressive because middle- and lower-income households often cannot afford to appeal their property tax assessments. This results in higher tax burdens on these households, while wealthier areas with higher property values can afford legal battles to reduce their tax rates.

How do corporate taxes in Illinois affect businesses?

Illinois has the second-highest corporate income tax rate in the country, which makes it difficult for businesses to thrive. Additionally, Illinois' high commercial property taxes and regulations, combined with the rise of remote work, have contributed to the state losing corporate tenants and businesses to other states.

What are some additional taxes that contribute to Illinois' high tax burden?

In addition to high property and corporate income taxes, Illinois also has the second-highest gas taxes and one of only a few states that taxes groceries statewide. While the state is set to end the statewide grocery tax in 2026, local municipalities will still have the option to implement their own grocery taxes.

Why do many businesses leave Illinois for other states?

Businesses leave Illinois due to its high taxes, particularly property taxes and corporate taxes, as well as the state's stringent regulations. The state's business-friendly rivals, such as Texas and Florida, offer more favorable tax policies and fewer regulatory hurdles.

What role does Illinois' regulatory environment play in business migration?

Illinois has one of the most regulated business environments in the country, with over 200,000 regulations in place. This makes it harder for businesses to operate efficiently, adding extra layers of bureaucracy and costs that many businesses prefer to avoid by relocating to states with fewer regulations.

How does Illinois' office vacancy rate compare to other major cities?

Chicago has the third-highest office vacancy rate among major U.S. cities, behind only San Francisco and Los Angeles. The city's downtown office space has seen vacancies rise due to the pandemic and the shift to remote work, with businesses reducing their in-person operations.

How does corruption in Illinois affect the state?

Corruption in Illinois has been a persistent issue, with four out of the last ten governors going to jail. The state's history of corruption has trickled down to local levels, where officials sometimes engage in embezzlement and mismanagement, undermining public trust and resources meant for essential services.