The Northwest Herald plunged into the coming income tax hike fight in Monday’s paper.
First revealed to the public in a Pioneer Press (owned by the Chicago Tribune) article on October 21st, Republican leaders are considering taxing retirement income.
McHenry County Blog reported the possibility the next day.
That same day State Rep. David McSweeney, who represents parts of McHenry County into Crystal Lake, issued a “Hell, No!” statement on the idea.
McHenry County Blog then wrote all Republican legislators asking their position.
Wheeler and Andersson replied. Andersson, who represents Sun City, was much more negative than Wheeler.
In mid-November, Crain’s Chicago Business reported that an ally of Governor Bruce Rauner was shopping around the idea of taxing retirement income.
In early December, McSweeney sought support from State Reps. for a resolution denouncing the idea of taxing retirement income, but, locally, only Jack Franks, Andersson and he signed on as sponsors.
Local representatives missing from the list are
- Mike Tryon (815) 459-6453
- Barb Wheeler (847) 973-0064
Now, the possibility has caught the attention of the NWH.
The front page article reports that Wheeler, a Republican, is open to supporting an income tax on public pensions of over $100,000.
There are probably not too many who would be bothered by that, but, if Wheeler believes that only public pension can be taxed, I believe she is forgetting the uniformity clause in the Illinois State Constitution:
SECTION 2. NON-PROPERTY TAXES – CLASSIFICATION, EXEMPTIONS, DEDUCTIONS, ALLOWANCES AND CREDITS
In any law classifying the subjects or objects of non-property taxes or fees, the classes shall be reasonable
and the subjects and objects within each class shall be taxed uniformly. Exemptions, deductions, credits, refunds and other allowances shall be reasonable.
Maybe public pensions can be differentiated from private retirement income, but maybe not.
Most certainly, the highly compensated retired school administrators and teachers would challenge such a law and tie it up in court for a couple of years.
One should not forget that lots and lots of judges would be caught by such a new income tax as well.