This tax season has been interesting from a planning aspect. I have had multiple clients expressing the desire to “get out of Dodge”.
They are seriously looking into fleeing Illinois. I have to admit that I don’t blame them, but I am stuck here because my business is in Illinois, most clients are located in this state. SO I have Illinois nexus so I would still be liable for Illinois taxes.
Who can blame anyone for thinking this way? With the ceaseless maneuvers to raises taxes and fees has only aggravated Illinois’ reputation as a state that has a major anti-employer attitude. The unpredictability is a major strike for businesses, even small businesses.
As one of the states with the highest tax burden with the state and local tax burdens; exorbitant property taxes, plus high sales taxes, plus the proposed fast-rising income taxes.
The graduated tax plan with a 7.75% rate for income starting with $250,000 and over straight 7.95% if over $1,000,000; will not go over well with anyone.
With the proposal to tax retirement dollars from 401K and qualified dollars that are not public pensions, has clients looking into Roth conversions in 2019 before the new tax can go into effect. This can be a sound plan for those whom it makes sense.
How do you plan to handle the Illinois situation?