Illinois on the verge of being downgraded to 'junk bond' status

[Pacolovestacos]

Yippee for my awesome state.

 

[cabanafrau]

Have to say, I've been watching this with a mixture of amazement, sympathy and fear. Not a good sign for the country overall.

 

[katie01]

Fellow Illinoisan here. We pay some of the highest property taxes in the nation (my county in particular is right there at the top), with high sales tax and income tax as well, and they still can't balance their budget. It's appalling. They are threatening that schools won't be able to open in the fall. How is that even possible? I guess I don't understand enough about government, but last I checked every child in the US is entitled to a public education.

 

[Magpie]

In case anyone else, besides me, had no idea what this means:

http://www.cnbc.com/2017/06/25/illinois-debt-is-about-to-be-rated-junk-what-that-means.html

What will it cost?
Battle says the cost to taxpayers in additional interest the next time Illinois sells bonds, which it inevitably will need to do in the long-term, could be in the "tens of millions" of dollars or more.
The more money the state has to pay on interest, the less that's available for things such as schools, state parks, social services and fixing roads.
"For the taxpayer, it will cost more to get a lower level of service," Battle said.

 

[Albort]

Fellow Illinoisan here. We pay some of the highest property taxes in the nation (my county in particular is right there at the top), with high sales tax and income tax as well, and they still can't balance their budget. It's appalling. They are threatening that schools won't be able to open in the fall. How is that even possible? I guess I don't understand enough about government, but last I checked every child in the US is entitled to a public education.

whats your property tax rate, sales tax rate, and income tax rates at?

 

[Pacolovestacos]

Sales tax is between 8 and 9%.

 

[usnuzuloose]

Wow , I thought that a place like the Hamptons would have the highest property taxes. But IL?

 

[Hikergirl]

Hmm, I was thinking the whole thread is political. Not in an attacking political ideology way, but in a financial crisis is brought on by politicians way.
I was going to comment on your fed bailout post but see it is now gone. Not sure why, and not sure why the thread remains then if we can't discuss the subject of a state in financial crisis and fed help

 

[katie01]

whats your property tax rate, sales tax rate, and income tax rates at?

Pacolovestacos answered the sales tax question (varies by county, but yes, our sales tax is around 9%). Our city and county for whatever reason seem higher than others in Illinois, we pay $11,000 a year in property taxes for our home that we purchased for $313,000 two years ago (current valuation is around $315,000 for the house). I should know what the income tax rate is, but I don't...my DH and the our tax preparer would know

 

[Albort]

Pacolovestacos answered the sales tax question (varies by county, but yes, our sales tax is around 9%). Our city and county for whatever reason seem higher than others in Illinois, we pay $11,000 a year in property taxes for our home that we purchased for $313,000 two years ago (current valuation is around $315,000 for the house). I should know what the income tax rate is, but I don't...my DH and the our tax preparer would know

yikes, and i thought California was bad... haha

 

[Mackenzie Click-Mickelson]

Sales tax is between 8 and 9%.

I'd kill for that. Here the norm is mid 9%-mid 10%

 

[Pacolovestacos]

I'd kill for that. Here the norm is mid 9%-mid 10%

But I'm guessing your income taxes are much lower than ours.

 

[Mackenzie Click-Mickelson]

Pacolovestacos answered the sales tax question (varies by county, but yes, our sales tax is around 9%). Our city and county for whatever reason seem higher than others in Illinois, we pay $11,000 a year in property taxes for our home that we purchased for $313,000 two years ago (current valuation is around $315,000 for the house). I should know what the income tax rate is, but I don't...my DH and the our tax preparer would know

That property tax is quite high.

My tax bill was almost $6,100 for a property at that time valued at $404,800. However 2017's evaluation is $423,700 so we'll pay more this year.

 

[Mackenzie Click-Mickelson]

But I'm guessing your income taxes are much lower than ours.

IDK perhaps. For a few years it was 4.6 for our income bracket now starting Saturday it will be 5.2 for our income bracket but will be retroactive to Jan 1st. I'm in KS.......I bet you can google what's been going on in our area.

ETA: 2018 rates will be 5.7 for our income bracket.

Believe me not everyone jumps for joy for lower tax rates especially when you find out what can happen.

 

[dish rag]

Not surprising really.

 

[3 MEN AND A BOAT]

IDK perhaps. For a few years it was 4.6 for our income bracket now starting Saturday it will be 5.2 for our income bracket but will be retroactive to Jan 1st. I'm in KS.......I bet you can google what's been going on in our area.

ETA: 2018 rates will be 5.7 for our income bracket.

Believe me not everyone jumps for joy for lower tax rates especially when you find out what can happen.

I quite listening to all the chicken littles scream that schools will close, firemen/police won't respond, or that bridges will collapse underneath you, etc. It's every time a tax is proposed to be lowered or someone is opposing a new tax.
I say let's find out.

 

[Mackenzie Click-Mickelson]

I quite listening to all the chicken littles scream that schools will close, firemen/police won't respond, or that bridges will collapse underneath you, etc. It's every time a tax is proposed to be lowered or someone is opposing a new tax.
I say let's find out.

Well you did find out the whole country found out how NOT to do income tax reductions/eliminations with my state.

 

[3 MEN AND A BOAT]

Well you did find out the whole country found out how NOT to do income tax reductions/eliminations with my state.

Illinois was in trouble before that.

 

[MillauFr]

Corruption. Pure and simple.

 

[Pipkin]

Connecticut is another state headed for trouble. No budget, huge billion dollar deficit, cutting aid to cities and towns to bail out Hartford, which is also on the verge of bankruptcy. Too many give aways and the rich who they vilified for not paying their fair share have fled the state.