Skip to comments.Illinois Senate president wants to look at taxing retirement income
Posted on 03/07/2011 2:28:49 PM PST by GRRRRR
Illinois Senate President John Cullerton today suggested the state should start taxing the retirement income of senior citizens who are able to afford it. The state does not currently tax pensions or retirement funds such as 401(k) plans, but Cullerton told a City Club of Chicago luncheon that should take place as part of an overall look at what he said was Illinois' "outdated" tax system.
"It would just be a matter of fairness," said Cullerton, a Chicago Democrat.
(Excerpt) Read more at newsblogs.chicagotribune.com ...
There's that word again. Work your butt off for 35-40 years, build up a nice nest egg and then...BAM!
Taxing the Elderly...because it's not their money after all is it? /s
I HATE Illinois DemoRats, so glad I don't live in that cesspool any longer...
This will happen everywhere. Soon all 401K money that is taken out by retirees will be taxed. See what happens when everyone complains about unfairness of the system. This is exactly what happens. Now instead of paying for government workers who receive a pension through regular state taxes now will not only pay for them through state taxes but 401K money as well.
Unreal. Fairness is leaving already taxed money alone, and not punishing those who save.
Don’t you already paid state income taxes and federal taxes when you withdraw it?
Democrats love that power. The power to be “fair”. A benevolent lot, noses in the air extending their hand for a subject to kiss.
time for more states to adopt constitutional amendments outlawing state income taxes.
I thought they had started taxing SS payments already. I read something about it last year or the year before.
Let’s see. You work hard. You don’t buy some things because you are saving for retirement. Joe N. Titlement doesn’t save a thing.... He knows the government will take YOUR savings to pay for HIS retirement! That’s “fairness”!
I know SO MANY PEOPLE who have ABSOLUTELY NO SAVINGS for retirement.... what else could they be thinking besides, “The government will take care of me.”??????
Fairness my aunt’s fannie. illinois needs to generate income. Gee what about all the Illinois people whom own a second home in the UP of Michigan will they tax them next too, for having another home another state.
Oddly enough if you are elderly in Michigan and have a pension it will be taxed.
I should have bought the house in Alabama instead I bought a house in Michigan. Uff da!
Medicare just changed the pre op med payment. They paid for the pre op med for surgery before this week. Now you must pay up front for the IV med pre colonoscopy or back surgery etc. $150. up front. The oldsters are going to need the money to pay for everything Obama and his panel of medical decison makers take away. You cannot afford the med? You will probably not have a “relaxing time” of it.
I hate it when I’m right.
I have a grand total of $35,000 in 401Ks and IRAs. The additional $400,000 I managed to salt away is POST tax.
CD’s, precious metals and a few super safe bonds (ie DC airport bonds etc.)
Never, ever trust the ba$tard$!)
Yeah, you do pay taxes, at a lower rate since your income is supposedly lower after retirement. I guess they want even more...
I took early retirement after 31 years at age 51 and am getting a pension from an IL corp. I pay CO state taxes on it..but not IL taxes. Plus the FEDS take a chunk out every month...the bastards.
I guess "outdated" is the term liberals use for the day when fiscal responsibility was important, and before there was income redistribution.
Our Marxist governor in Hawaii proposed the same thing a couple of months ago. LOL! Those who supported him are very upset.
Question: Can a state legally tax a FEDERAL pension, i.e., military retirement pay?
So in addition to the those sky high property taxes and sales taxes, every retired person can look forward to paying more to those clowns in Springfield!
Go Cullerton! This might JUST be stupid enough to finally get rid of the Democrat majority in the legislature next election cycle...
Yup. The mindset is: No one starves in America. I don't know how it will happen, but I know I'll be taken care of, somehow, somewhere, by somebody. It would be unthinkable to abandon me!
Until we place the option of starvation in an alley back on the table as a real possibility, some people will see no reason to take personal responsibility for their own future.
Retired people do not have to stay in Illinois. They can take their retirement to a state that does not tax retirement income.
I know that for a fact because I live in Maryland where they do tax retirement income and have many frinds who got a pay raise by moving.
It’s a great way to run retired people out of state.
IIRC, 401K’s have always been taxed by the Feds upon withdrawal. But some states have exempted taxing them.
SS is taxed if your earnings are over a certain amount.
I don’t know what that is though.
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