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Archive for the ‘Economy’ Category

No. 2 no more: Illinois property taxes rank highest in U.S.

Posted in Diversity, Equity and Inclusion (DEI), Economy, Illinois Policy Institute, Immigration, Look For The Union Label, Politics, Pritzker’s Rules of Order, Property Taxes, School Districts, Springfield, Unions on July 25, 2025| 1 Comment »

Illinois just ranked as having the highest property tax rate in the country. Property taxes in Illinois are an especially heavy burden without the tradeoff seen in states such as Texas or New Hampshire, where there are either no sales taxes or income taxes.

By Charlotte Rotkis | Illinois Policy Institute

After years of ranking No. 2 to New Jersey, the latest data shows Illinoisans paid the highest property taxes in the nation during 2023. Worst, Illinoisans also pay steep income and sales taxes.

Illinois homeowners paid an average effective property tax rate of 1.83%, the highest in the nation. On a median-priced home of $250,500, that amounts to $4,584 per year. Neighboring states had significantly lower rates, making the idea of finding a home outside of Illinois appealing.

Property taxes are based on the idea that the people paying benefit from the services the taxes go to fund. Yet nearly 3-in-5 Illinoisans feel as if the value of public services they receive is not worth their high property taxes.

Are Illinois property taxes a reason Indianapolis and St. Louis are in the top 10 housing markets?

The disparity between taxes and services received stems from pension spending crowding out other essential services. In addition to limiting funding for key services, pensions are the leading force for driving up property taxes. Growing pension payments redirects money away from property tax relief or better public services.

Read more here.

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AI fuels higher ComEd bills

Posted in ComEd Four, Economy, Hoffman Estates, Plum Farm development, Politics, Sears, Topics Of Interest on July 24, 2025| 1 Comment »

ComEd customers are already reeling from a big jump in monthly electric bill prices. | Pat Nabong/Sun-Times file

Reporting by Brett Chase | Chicago Sun*Times

Buckle up: The multistate electric grid operator PJM Interconnection confirmed Tuesday that power demand continues to be high and that the price of electricity is likely going up next year.

Hot, hot, hot: Electric rates went up June 1. Most customers didn’t see the increases on their bills until this month. A ComEd customer who normally pays about $100 a month on average will see a spike of almost 11% on upcoming power bills.

AI caramba: Power demand across the country has skyrocketed, spurred by artificial intelligence operations and big data centers. Meanwhile, new sources of renewable energy including wind and solar have been slow to get connected to an electric grid that spans from Northern Illinois to the East Coast.

Read more here.

Related: “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “How data centers became the newest growth industry in the suburbs,” ”Done deal: Texas data center firm closes on deal for Sears campus in Hoffman Estates”

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710k Illinoisans avoid work advancement to keep welfare benefits

Posted in Economy, Ethics, Illinois Policy Institute, Perjury, Politics, Pritzker’s Rules of Order, Property Taxes, Springfield, Taxes on July 17, 2025| 1 Comment »

Welfare programs are structured poorly and punish people for working to climb out of poverty. An estimated 710,000 Illinoisans have intentionally hurt their own economic advancement to keep welfare benefits.

By Sachi Gaonkar | Illinois Policy Institute

An estimated 710,000 Illinoisans have intentionally hurt their personal finances to avoid losing a welfare benefit, according to a new study.

A new report by the Center for Social Development at Washington University in St. Louis shows nearly 1-in-4 welfare recipients has taken at least one negative action to avoid losing benefits, such as turning down raises or promotions, working fewer hours, declining job offers and refusing to build savings. With 3.2 million Illinoisians living at or below 200% of the federal poverty level, that translates to at least 710,000 people in Illinois intentionally holding themselves back.

Social welfare programs are supposed to support families during times of need. Instead, they punish people in Illinois and across America as they work their way back to independence by removing health care, food and other benefits – a dynamic known as a “benefit cliff.” Research shows these cliffs are not only real, but that they affect a sizable number of Illinoisans.

National research highlights a structural challenge

Benefit cliffs occur when modest increases in earnings lead to a sudden and significant reduction in social welfare benefits. In Illinois, research from the University of Chicago shows a modest $1,000 annual wage increase, from $54,000 to $55,000, would result in an Illinois family losing over $25,000 in child care benefits. This dynamic can leave workers in a significantly worse financial position after a raise or promotion than they were before.

Individuals in households with people with disabilities were more likely to avoid economic advancement, underlining the added vulnerability some groups face when navigating social welfare programs. In Illinois, half of disabled people age 18 to 64 are not in the workforce.

Read more here.

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Editorial: Gov. Pritzker and State Farm should stop throwing rhetorical bombs at each other and start negotiating

Posted in Chicago Tribune, Economy, OP/Ed, Topics Of Interest on July 16, 2025| Leave a Comment »

Scott Stantis editorial cartoon for Wed, July 16, 2025, on Gov. Pritzker and State Farm (Scott Stantis/For the Chicago Tribune).

By The Editorial Board | Chicago Tribune

The governor of Illinois and one of the state’s biggest employers are engaged in an unusually heated war of words.

Shortly after news dropped last week of State Farm’s eye-watering 27% average rate hike on Illinois homeowners insurance customers, Gov. JB Pritzker erupted, accusing the Bloomington-based insurance giant of pulling a fast one. “These increases are predicated on catastrophe numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis — indicating that State Farm is shifting out-of-state costs onto the homeowners of this state,” Pritzker said in a statement. “Hard working Illinoisans should not be paying more to protect beach houses in Florida.”

In the insurance world, those are fighting words.

State Farm responded with its own statement saying Pritzker had his facts wrong, and that the insurer’s rate hike — as shocking as it was — reflected only its experience in Illinois, where hail and wind storms, combined with higher replacement costs, have made its homeowners business here deeply unprofitable. “Illinois families deserve an honest conversation about insurance economics rather than political rhetoric.”

So what we appear to have now are two powerful forces facing off, each effectively accusing the other of being a liar. Not ideal, to say the least.

We understand the governor’s frustration. The 27% increase, set to take effect Aug. 15, is the largest such one-time hike in memory in Illinois, and State Farm isn’t just any old provider. The largest insurer of homes and cars in the land, State Farm is particularly dominant in its home state. For years, it’s insured roughly 1 of every 3 Illinois homes.

So when State Farm raises annual premiums by hundreds of dollars in one fell swoop, that could well have a negative impact on the state’s economy. State Farm is that big of a player. Consumers already are struggling with inflation of all sorts. Insurance — like utility bills, which also are rising sharply this summer — isn’t an avoidable cost. When insurance costs rise this much, many consumers have to tighten other parts of their budgets, which hurts businesses whose products are more discretionary.

More here.

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IL construction workers highest paid in U.S. as new home building lags

Posted in Economy, Look For The Union Label, Politics, The Center Square on July 14, 2025| Leave a Comment »

By Jim Talamonti | The Center Square

According to two new reports by Construction Coverage, Illinois ranked 48th out of 50 U.S. states for new home construction last year while leading the nation in construction worker pay.

Analysts at Construction Coverage looked at wage data from the U.S. Bureau of Labor Statistics and cost-of-living data from the Bureau of Economic Analysis to determine where in the country construction workers earn the most when local price differences are taken into account.

Michael Stromberg, head of Engineering & Data Analytics at Construction Coverage, said construction workers in Illinois have the highest median wages in the country after adjusting for cost-of-living metrics.

“That’s coming in at over $79,000 per year. For reference, that’s nearly 12% more than the next-highest neighboring Midwest state, Minnesota, at just over $70,000 annually. That’s also 50% more than the median wage for all workers in Illinois at roughly $50,000 per year,” Stromberg told The Center Square.

Without the cost-of-living adjustment factored in, Stromberg said Hawaii’s construction workers earn higher median wages than Illinois workers, but Hawaii’s high cost of living resulted in Illinois’ elevation to the top spot.

Stromberg said the trends hold true at the local level.

“The Chicago metropolitan area ranks first among large metros for construction worker pay. The Peoria metropolitan area ranks first among mid-size metros, and Decatur and Champaign rank second and third respectively among small metropolitan areas. So, from a personal income perspective, Illinois is an attractive state to work in for construction workers,” Stromberg said.

Read more here.

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State Farm to raise Illinois homeowners insurance rates by 27.2% in August

Posted in BOHICA, Chicago Tribune, Economy on July 10, 2025| Leave a Comment »

A house on Sandy Meadow Circle on the banks of Big Sandy Creek near Leander, Texas, seen on July 9, 2025, was heavily damaged in the Fourth of July weekend flood. | Jay Janner/Austin American-Statesman

By Robert Channick | Chicago Tribune

As Texas grapples with the massive flooding that struck Hill Country and killed at least 119 people during the July Fourth weekend, many Illinois homeowners will soon see their home insurance rates skyrocket due to the increase in such extreme weather events.

State Farm is raising homeowners insurance rates in Illinois by a whopping 27.2% beginning Aug. 15, according to a filing with the state last month. The rate hike, one of the largest in the state’s history, will affect nearly 1.5 million policyholders. New policyholders will pay the higher rates as of July 15.

In its filing, Bloomington-based State Farm said the rate increase is driven by catastrophic losses related to extreme weather events in Illinois.

“Over the last several years, our catastrophe provision has proven to be inadequate when compared to our actual catastrophe loss experience,” State Farm said in the filing. “While there is volatility associated with extreme weather events, our Illinois catastrophe losses have exceeded the year’s catastrophe provision in 13 of the last 15 years, signaling the provision used in rating has been insufficient in recent history.”

A State Farm spokesperson did not respond to a request for comment Wednesday.

In February, Northbrook-based Allstate raised homeowners insurance rates by 14.3% for nearly 248,000 Illinois customers, as the broader insurance industry struggles to keep up with the increasing frequency of extreme weather events across the country.

Read more here.

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Rep. McLaughlin: Pritzker’s New Tax Hikes Are a Direct Hit on Illinois Families and Job Creators

Posted in Economy, Overhead, Politics, Press Release, Pritzker’s Rules of Order, RINO, Taxes on June 30, 2025| 3 Comments »

“Democrats never miss an opportunity to take more of your money,” said McLaughlin. “This budget raises taxes on the things people use every day— gasoline, phones, internet, and even short weekend trips. It’s a classic Illinois move: grow government, grow spending, and hand taxpayers the bill.”

Tax increases taking effect July 1 include:

  • Annual Motor Fuel Tax Increase: For gasoline, the tax is increasing to $0.483 per gallon, an increase of 2.77%; For diesel fuel, the tax is increasing to $0.558 per gallon, an increase of 2.39%
  • Sports Betting Tax Hike: 25 cents per wager for the first $20 million in bets a sportsbook takes in—then 50 cents per bet after that.
  • Major Increases on Nicotine Products: E-cigarette taxes triple (15% to 45%), moist snuff is now taxed at 45% of wholesale, and new taxes hit nicotine pouches, lozenges, and gum.
  • Short-Term Rental Tax Expansion: Airbnb and Vrbo stays will now be taxed like hotel rooms.
  • Telecom Tax Increase: Phone and internet services taxed at 8.65%, up from 7%.

McLaughlin referenced the increases to the Motor Fuel Tax as a point of major concern: “The idea that we can raise diesel prices and it’s not going to have an impact on families and consumers is ridiculous. It’s going to cause more inflation and higher prices for everyone across the board and it’s incredibly anti-business,” said McLaughlin.

For more information about Representative McLaughlin, visit RepMcLaughlin.com

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Editorial: Why Chicago has a restaurant crisis

Posted in Chicago Tribune, Economy, Entertainment, OP/Ed on June 29, 2025| Leave a Comment »

A pedestrian passes the Gale Street Inn on June 20, 2025, in Chicago. The restaurant recently shut down. | Stacey Wescott/Chicago Tribune

By The Editorial Board | Chicago Tribune

The hit TV show “The Bear” chronicles an independent restaurant’s existential struggles and celebrates Chicagoans’ determination to survive. But you need only traverse one of the city’s real-life arteries, such as North Broadway through Edgewater or along 26th Street in Little Village, to see the the state of one of Chicago’s most celebrated and artful industries: shuttered restaurants pockmark almost every block.

Chicago’s storied restaurant business is mired in crisis.

If you doubt our word that this is a dire emergency, we suggest you swivel your head from road or sidewalk and look for yourselves.

Fine dining. Trattorias. Taquerias. Vietnamese cuisine. Italian beef. It seems not to matter. Chicago has never been a locus of chain restaurants, unlike many cities in the south. The fame of the city’s restaurants has sprouted from the creativity of independent operators, some craving (and winning) James Beard Awards and international acclaim, and others merely wanting to serve and nourish their communities.

We hardly need to tell you that many locally owned restaurants are the foci of their neighborhoods, which accounts for why there was such a howl of anguish in recent days when the cozy Gale Street Inn on Milwaukee Avenue in Jefferson Park announced its closure. Its famously genial operator, George Karzas, had owned and run the restaurant since 1994. Among his many other good works, he supported his local Jefferson Park theater, The Gift, storefront theaters and storefront restaurants sharing much of the same homegrown DNA in this city. At the Gale Street Inn, you always knew you were in Chicago.

The problem? The current headwinds are many in the restaurant business, including the well-documented rise in food costs. But top of mind of those in the hospitality industry in Chicago is the high cost of labor and the city’s shortsighted decision to get rid of the so-called tipped minimum wage following a campaign by an out-of-state activist group, One Fair Wage, which had worked its agenda on Mayor Brandon Johnson and enough of the aldermen in the City Council. Karzas’ decision to close the Gale Street Inn comes as the tipped minimum wage was set to increase again Tuesday, rising from $11.02 to $12.62 an hour as part of a phased-in approach that has been a progressive nightmare for restaurants.

One Fair Wage is led by Saru Jayaraman, a Yale University-educated lawyer, activist and academic who runs the Food Labor Research Center at the University of California at Berkeley. Back in Chicago, Christina Gonzalez from Taqueria Los Comales told us this past week that she worries not about political campaigns, but the price of her burritos at a family business with a 50-year history.

“I can’t charge $24 for a burrito,” she told us. “My customers won’t come.”

Read more here.

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Six questions Gov. Pritzker should have been asked during his testimony on Illinois’ sanctuary status

Posted in Crime, Dinky, Diversity, Equity and Inclusion (DEI), Economy, Immigration, Look For The Union Label, Politics, Preckwinkle's Rules of Order, Pritzker’s Rules of Order, Property Taxes, Springfield, Taxes, The Chicago Way, Unions, Wirepoints on June 17, 2025| 1 Comment »

By Ted Dabrowski and John Klingner | Wirepoints 

The economic consequences of Illinois’ spending on illegal immigrants are real. Everyone gets hurt by the higher taxes that spending billions more imposes. But there’s much more to the migrant problem than that.

Our schools are being overwhelmed. Unemployment will likely jump. And so will poverty. Our streets have become less safe. And our economy will suffer.

If Wirepoints had been at Gov. Pritzker’s congressional testimony, here are six questions we would have asked him to answer:

1. How do you justify spending more than $1.5 billion of Illinois taxpayers’ dollars on healthcare for illegal immigrants when Chicago has the highest black poverty rate in the country among the nation’s biggest cities?

(Click on image to enlarge)

(Click on image to enlarge)

2. How do you justify spending hundreds of millions, if not billions, on illegal, non-English-speaking children at Chicago Public Schools when the school district is already junk-rated, faces a billion-dollar deficit and has just 21% of black students able to read at grade level?

3. How can you justify allowing illegals with violent criminal histories to come to our state when Chicago has led the country in total murders for 13 years in a row and had the highest murder rate among the nation’s 20 biggest cities in 2024?

(Click on image to enlarge)

Read more here.

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Three (3) Democratic candidates queued to run for the IL 52nd District House seat in 2026

Posted in 220, Animal Welfare, Board of Education, Clown Car, Daily Herald, Diversity, Equity and Inclusion (DEI), Economy, Elections, Ethics, Illinois State Board of Elections, Immigration, Look For The Union Label, Politics, Pritzker’s Rules of Order, Property Taxes, Taxes, Unions on June 14, 2025| 3 Comments »

Jesse Rojo, Erin Chan Ding and Maria Peterson

Three Democratic candidates have declared, or will declare shortly, their candidacies for the Illinois 52nd District House seat currently held by Representative Martin McLaughlin. McLaughlin has held this seat for four and a half years now having won election three times.

On Tuesday, the Daily Herald posted, “Former Barrington village board candidate running for State house seat,” namely Jesse Rojo. Records indicate Rojo, 29, moved to Barrington in March of 2023 from Des Plaines. His social media pages indicates he will be active this Flag Day at “No Kings” events, so look him there today.

Recently reelected CUSD 220 Board of Education member Erin Chan Ding is hosting a “Launch Party” event this coming Wednesday in Barrington to officially announce her candidacy.

And last, Maria Peterson, who ran in the November 2024 52nd District election against Martin McLaughlin, has announced her campaign kickoff event will be held June 23rd in Barrington. Peterson also ran for office in 2022 against former Senate Senator Dan McConchie in the 26th District.

The General Primary Election is on Saint Patrick’s Day, March 17, 2026.

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