Rockford Sun

Illinois is losing many of its young professionals and wealthiest residents to other states as housing, jobs and high taxes have many searching for greener pastures.

The end result is the state’s population has shrunk for the past six years and it has lost a total of 850,000 residents during this decade, Illinois Policy reported. Illinois is one of only four states in the nation that has suffered population decrease during that time span making is less wealthy and diverse.

Meanwhile, states like Texas have benefited and one of the reasons is taxes. Texas does not have a state income tax which can be a powerful lure. In comparison, Illinois taxes have proved detrimental to keeping the state’s workforce intact. Illinois Policy reported the state’s tax hikes have reduced investment flows and caused growth issues in job openings in comparison to other states. This has allowed others to move forward while Illinois falls behind.

The prospects for improvement are uncertain as many state politicians including Gov. J.B. Pritzker would like to replace the flat tax with a progressive income tax that would produce a tax hike for the third time this decade, Illinois Policy reported. Small businesses would also be adversely impacted.

The business community is also a concern for retaining employees as there are fewer job openings. There is also a concern for individual financial growth as the state taxes are a hindrance. When taxes eat into income, housing is no longer affordable.

There is no single race or age group responsible for the decreasing population as many are seeking new opportunities. When it comes to education, more residents without a degree are leaving the state because that category is larger. But individuals with degrees are twice as likely to leave the state.

“People talk about the exodus from Illinois, and they’ve blamed it on a lot of things, because we’ve lost population,” Pritzker said in the Illinois Policy report. “Illinois lost population in 94 out of the last 95 years, so it’s not like it’s a new thing that we have a slight out-trickle of people leaving the state. Nevertheless, I’d like to reverse it.”

Among the remedies needed to stabilize the population and strengthen the economy is a solution to the pension, which is taking up 25% of state expenditures Illinois Policy reported. It also suggested. Curtailing government spending with a cap similar to states like Texas would also benefit Illinois, providing an avenue to gain a surplus.