Budget Buster: Living in IL

[FINFAN]

Tiger926,

While I was aware that Canada is a more "taxing" place to live...I did not realize that the income tax was that high, to see a flat 42% was eye-opening, I mean, I know housing is expensive as well, so I was surprised. Thank you for the breakdown, and if I understand it you guys have lesser expensive costs for college/university right? I know when my DD was liiking into a few schools in Canada, the tuition was about a 1/4 of ours, but housing was about the same.
Glad to read you guys have raises coming, I don't think we've seen that or about 4 years now, matter of fact, more like cuts just to keep our jobs!

 

[mjkacmom]

I live in NH and we don't have an income tax or a sales tax, but we do have high property taxes. We pay about $6k a year in property tax.

I don't think there is anyone here who only pays $6000 in property tax! I know I'd be thrilled! Plus, we have the other taxes as well. NJ is in BAD shape.

 

[Tiger926]

Tiger926,

While I was aware that Canada is a more "taxing" place to live...I did not realize that the income tax was that high, to see a flat 42% was eye-opening, I mean, I know housing is expensive as well, so I was surprised. Thank you for the breakdown, and if I understand it you guys have lesser expensive costs for college/university right? I know when my DD was liiking into a few schools in Canada, the tuition was about a 1/4 of ours, but housing was about the same.
Glad to read you guys have raises coming, I don't think we've seen that or about 4 years now, matter of fact, more like cuts just to keep our jobs!

No worries - it's just that most articles about Canada always mention how much we are taxed. It's all over our news, each and everyday...

Income Tax - Actually, once we get our raises, we will be at the highest rate, which is almost 47%.

Housing varies - Toronto and Vancouver are astronomically high. My 3600 sq foot home is $300,000 in my city, but in those cities it would be between $800,000 - $1 million.

Tuition - It is cheaper than the U.S. as the government subsidizes a bit. Tuition is rising very quickly though, and although it's still much cheaper than in the US, it's rising quite quickly. Our government also helps with student loans as well.

Raises - I'm a Canadian teacher, and we are very highly paid. This is the last year of our current contract, so government set aside a raise for us. Hubby is getting a raise as he was just promoted. We are lucky, but we are professionals, whereas most of the working class people we know, are without jobs, or working in very low paying jobs. Although our minimum wage is over $10.00/hour, so that helps too.

We also pay way more for our goods and services in their actual costs, not to mention our sales tax. Our gas is $1.11/litre, which converts to approx. .80/gallon, loaf of bread is over $2.00, chicken breast $6.00/lb, apples $1.35/lb, etc.

We love being Canadian, but it's expensive! Tiger

 

[Anjelica]

While other states do have higher income taxes people don't realize that IL has thousands of differing taxing bodies above and beyond income taxes. We have some of the highest taxes on gas, property, etc. We are also one of the states that has HUGE budget problems yet we have quite a few social programs (again above and beyond most of the other 49 states). The government in IL REFUSES to cut any programs yet they want to continue to raise taxes and spend, spend, spend....

 

[Tiger926]

While other states do have higher income taxes people don't realize that IL has thousands of differing taxing bodies above and beyond income taxes. We have some of the highest taxes on gas, property, etc. We are also one of the states that has HUGE budget problems yet we have quite a few social programs (again above and beyond most of the other 49 states). The government in IL REFUSES to cut any programs yet they want to continue to raise taxes and spend, spend, spend....

Sounds exactly like Canada!! Tiger

 

[jmpellet]

While other states do have higher income taxes people don't realize that IL has thousands of differing taxing bodies above and beyond income taxes. We have some of the highest taxes on gas, property, etc. We are also one of the states that has HUGE budget problems yet we have quite a few social programs (again above and beyond most of the other 49 states). The government in IL REFUSES to cut any programs yet they want to continue to raise taxes and spend, spend, spend....

What are the actual costs for items like gas? We have budgets problems in MA also and fiscal year 2012 looks to be really bad without stimulus money.

 

[LUV DA MOUSE]

What are the actual costs for items like gas? We have budgets problems in MA also and fiscal year 2012 looks to be really bad without stimulus money.

Gas as of today in my area is $3.23 a gallon for regular. I live just outside of Chicago on the northwest side of Cook County. Our sales tax is also 10% here. My paycheck was $61 dollars more yesterday since the feds changed the SS rate, if this tax increase passes it will be a wash. Government is a joke.

 

[Anjelica]

What are the actual costs for items like gas? We have budgets problems in MA also and fiscal year 2012 looks to be really bad without stimulus money.

Premium was about $3.4x the last time I checked. That is why I try and fill up when I am on the MO side as there's is typically .20+ cents cheaper.

 

[crjack]

I think all sorts of things need to bee included to be able to compare states or areas equally. I'm in MA a.k.a. Taxachusetts but I'm not sure if it's held up to its bad rep. I think all these things need to be included for comparison sake.

House prices, values, AND corresponding property taxes: My almost 3,000 sf house would probably sell for 450k and my taxes are 4k.

State tax: 5.3%

Sales tax: 6.25% (none on food or clothing)

Excise tax: in my town it's $26.17 per $1,000 value. About $400 on a new $22k vehicle.

Income: State averages are all over the place!

Utilities: my electric bill averages $100/month and last month's natural gas bill was $160.

Necessities: Milk - $2.50/gallon, gas - $3.00/gallon, others?

I agree that the "taxachusetts" label is definitely misleading. I know every state has to tax so often times if they dont have one type they have another.

We live in a very nice suburb and our property taxes are nothing like the ones people in IL and NJ are paying but our home values are high. We also tend to have higher incomes in Greater Boston due to the variety of industry here and access to some of the best hospitals in the world so I think our quality of life is pretty comparable for what we pay.

Now one thing that can really vary from town to town is home values and schools. At least most of what I pay every month for a total mortgage payment is for my mortgage and not my property taxes.....it leaves more at the end in equity as the house is paid off.

 

[HHSTigerFan]

Illinois is currently #30 on the list of which states tax their residents the most according to the story I just heard on the news, NJ is #1..

 

[chicagoshannon]

I'd LOVE to move out of IL... too bad we can't even GIVE our house away!

 

[RitaE]

Illinois is currently #30 on the list of which states tax their residents the most according to the story I just heard on the news, NJ is #1..

I don't think Illinois taxes taken as a whole are as high as most of the Northeast States, but again, a huge chunk of our Tax Structure here is by authorities other than the state. County, region, high sales taxes etc.

I think what bothers residents here the most is just the intense gloom that blankets the State concerning our State Government. The money they collect is incredibly mismanaged. Nursing Homes and schools are owned millions of dollars because the State just simply doesn't pay. Our local School District just had to borrow money because the State of Illinois isn't paying what they owe.

The State Pension funds are severely underfunded and our Teachers don't pay into Social Security as a back-up. If the State finds a way to default on that Pension (which right now is Constitutionally guaranteed but who knows) we will have thousands of Teachers with no Retirement at all. Teachers are extremely worried about it.

And it seems like every other week we get a new article in the paper about the impending State Bankruptcy or some other corruption. Everybody is just disgusted with it.

 

[HHSTigerFan]

I don't think Illinois taxes taken as a whole are as high as most of the Northeast States, but again, a huge chunk of our Tax Structure here is by authorities other than the state. County, region, high sales taxes etc.

Yes, the study they mentioned said it included all taxes and Illinois was ranked #30, point being that perhaps Illinois residents aren't taxed as much as we think when compared to other states.

 

[angwill]

While other states do have higher income taxes people don't realize that IL has thousands of differing taxing bodies above and beyond income taxes. We have some of the highest taxes on gas, property, etc. We are also one of the states that has HUGE budget problems yet we have quite a few social programs (again above and beyond most of the other 49 states). The government in IL REFUSES to cut any programs yet they want to continue to raise taxes and spend, spend, spend....

I am in IL too and curious what social programs do we have that other states don't? Just wondering because it is something I don't know about.

 

[angwill]

Illinois is currently #30 on the list of which states tax their residents the most according to the story I just heard on the news, NJ is #1..

I'd love to see that study.

 

[angwill]

Gas as of today in my area is $3.23 a gallon for regular. I live just outside of Chicago on the northwest side of Cook County. Our sales tax is also 10% here. My paycheck was $61 dollars more yesterday since the feds changed the SS rate, if this tax increase passes it will be a wash. Government is a joke.

They gave the SS increase because they took away the tax incentive they gave last year so it will be a wash without the increase.

 

[RitaE]

I'd love to see that study.

Really depends on what study you look at. According to this one Illinois is (was) 25th. I don't know where the State Income increase would put us.

http://www.statemaster.com/graph/eco_tot_tax_bur-total-tax-burden-per-capita

But again methodology is everything. That takes Illinois as a whole and everybody in Illinois can tell you the Chicago area and the rest of the State are hardly comparable.

 

[angwill]

Did anyone else here in IL hear about the state taking away our homestead exemption tax? If you look on your tax bill your homestead exemption is about twice what you are paying in property taxes right now. If they take it away we will be paying 3x as much. There is also talk of a 60% increase on top of that. I can't see how they can do that but we will see. I heard this from a real estate attorney that Quinn passed taking away the homestead exemption already and it is on the desk in the house to be passed. I guarantee if that happens we will be #1 for property tax in the US.

 

[angwill]

Really depends on what study you look at. According to this one Illinois is (was) 25th. I don't know where the State Income increase would put us.

http://www.statemaster.com/graph/eco_tot_tax_bur-total-tax-burden-per-capita

But again methodology is everything. That takes Illinois as a whole and everybody in Illinois can tell you the Chicago area and the rest of the State are hardly comparable.

Thanks for the link. You are right Cook county taxes as a whole are awful compared to the rest of the state.

Dang I just saw the link averages are from 2004.

 

[HHSTigerFan]

Did anyone else here in IL hear about the state taking away our homestead exemption tax? If you look on your tax bill your homestead exemption is about twice what you are paying in property taxes right now. If they take it away we will be paying 3x as much. There is also talk of a 60% increase on top of that. I can't see how they can do that but we will see. I heard this from a real estate attorney that Quinn passed taking away the homestead exemption already and it is on the desk in the house to be passed. I guarantee if that happens we will be #1 for property tax in the US.

I don't think you understand the homestead exemption