The new tax my State Representative Barb Wheeler and retiring State Rep. Mike Tryon won’t come out against–a tax on retirement income–has gotten a boost from the Civil Federation.
While described as a right-of-center organization, my memory is reminding me that it has supported income tax increases in the past.
The details of the pitch are here:
“A tax on retirement income has largely been a third rail in Illinois. Different estimates show that could bring in about $1 billion in new revenue per year. The Civic Federation is recommending that it be progressive – that only those that have retirement income in excess of $50,000 get taxed.”
Laurence Msall points out that all surrounding states tax retirement income.
What he doesn’t point out is that most Illinois citizens aren’t tempted to retire in surrounding states, except maybe Missouri and Kentucky.
Other recommendations of the report include
- Reigning in spending to the tune of $1 billion as the governor has proposed
- Having the state teachers’ retirement system absorb the Chicago teachers’ pension fund and consolidate it into one fund
- A constitutional amendment that would change the pension protection clause and only guarantee retirees benefits that have been accrued – not future benefits as the Supreme Court has ruled it does
“Msall says all of this requires politicians to abandon decisions that are based on re-election,” the article says.
Easy to do if you’re not running for re-election or have not primary opponent.
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Tryon’s numbers are
- (217) 782-0432
- (815) 459-6453
Barb Wheeler Wheeler can be contacted at
- (217) 782-1664
- (847) 973-0064
Or one can email her here:email@example.com
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And, of course, I have an interest in a retirement tax not passes, as I received a state pension of $88,542.54 last year.
So, if a 5% tax were enacted, would I move to Florida to save $2,000 here and gain a big senior Homestead Exemption on our home there?
I suspect that’s the kind of cost-benefit analysis that a lot of McHenry County residents, not to mention those living elsewhere in Illinois, will consider.
Later, remembering I would have to pay tax on the deferred 401(k) and 457 income I am forced to withdraw ever year, I see the incentive to move to Florida would be even greater.