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Illinois Senate president wants to look at taxing retirement income
Chicago Tribune ^ | 03/07/11 | Monique Garcia and Rick Pearson

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told a City Club of Chicago luncheon that should take place as part of an overall look at what he said was Illinois' "outdated" tax system.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 ...


TOPICS: News/Current Events; US: Illinois
KEYWORDS: 401k; illinois; taxes
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"...a matter of FAIRNESS..."

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...

1 posted on 03/07/2011 2:28:52 PM PST by GRRRRR
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To: GRRRRR

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.


2 posted on 03/07/2011 2:31:41 PM PST by napscoordinator
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To: GRRRRR

Unreal. Fairness is leaving already taxed money alone, and not punishing those who save.


3 posted on 03/07/2011 2:32:37 PM PST by scott7278 (lif"...I have not changed Congress and how it operates the way I would have liked..." - BHO)
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To: GRRRRR

Don’t you already paid state income taxes and federal taxes when you withdraw it?


4 posted on 03/07/2011 2:33:57 PM PST by svcw (God in His own time not ours)
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To: GRRRRR

Democrats love that power. The power to be “fair”. A benevolent lot, noses in the air extending their hand for a subject to kiss.


5 posted on 03/07/2011 2:33:57 PM PST by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: GRRRRR

time for more states to adopt constitutional amendments outlawing state income taxes.


6 posted on 03/07/2011 2:36:28 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: GRRRRR

I thought they had started taxing SS payments already. I read something about it last year or the year before.


7 posted on 03/07/2011 2:37:35 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White.)
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To: GRRRRR

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.”??????


8 posted on 03/07/2011 2:38:44 PM PST by Reddy (B.O. stinks)
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To: GRRRRR

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!


9 posted on 03/07/2011 2:39:37 PM PST by hondact200 (Candor dat viribos alas (sincerity gives wings to strength) and Nil desperandum (never despair))
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To: svcw

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.


10 posted on 03/07/2011 2:40:29 PM PST by oldironsides
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To: GRRRRR

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$tard$!)


11 posted on 03/07/2011 2:41:34 PM PST by traderrob6
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To: svcw

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.


12 posted on 03/07/2011 2:41:58 PM PST by GRRRRR (He'll NEVER be my President, FUBO! Treason is the Reason! Impeach the Kenyan)
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To: GRRRRR
. . . 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.

I guess "outdated" is the term liberals use for the day when fiscal responsibility was important, and before there was income redistribution.

13 posted on 03/07/2011 2:42:11 PM PST by Repealthe17thAmendment (Is this field required?)
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To: GRRRRR

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?


14 posted on 03/07/2011 2:42:29 PM PST by Islander7 (There is no septic system so vile, so filthy, the left won't drink from to further their agenda)
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To: GRRRRR

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!


15 posted on 03/07/2011 2:42:29 PM PST by A. Morgan
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To: GRRRRR

Go Cullerton! This might JUST be stupid enough to finally get rid of the Democrat majority in the legislature next election cycle...


16 posted on 03/07/2011 2:42:48 PM PST by bigbob
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To: Reddy
what else could they be thinking besides, “The government will take care of me.”??????

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.

17 posted on 03/07/2011 2:43:07 PM PST by ClearCase_guy
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To: GRRRRR

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.


18 posted on 03/07/2011 2:43:13 PM PST by Venturer
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To: napscoordinator

IIRC, 401K’s have always been taxed by the Feds upon withdrawal. But some states have exempted taxing them.


19 posted on 03/07/2011 2:43:17 PM PST by rawhide
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To: ReverendJames

SS is taxed if your earnings are over a certain amount.

I don’t know what that is though.


20 posted on 03/07/2011 2:43:55 PM PST by Mears
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To: GRRRRR
This is where it will go if we back down to these money grubbing public employee unions.

Its us or them.

21 posted on 03/07/2011 2:44:35 PM PST by skeeter
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To: GRRRRR

It was tax deferred until you retire or draw on it.

The idea that they are actually going to tax it...probably at a lower rate than when it was earned and deferred...

///


22 posted on 03/07/2011 2:44:50 PM PST by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)
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To: GRRRRR

The Socialist Untied States politicians will NEVER run out of ways to tax.
But they will eventually run out of other people’s money.

Taxing anyone who still has money will be the game, because they are fast running up against the end game of all fiat currencies. No one left to tax.

How long will Americans continue to lie to themselves that this nation has anything to do with freedom, while the usurper sits in the White Hut.


23 posted on 03/07/2011 2:45:26 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: traderrob6

Precious metals- a fund?


24 posted on 03/07/2011 2:45:49 PM PST by petercooper (Purge the RINO's.)
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To: GRRRRR

They should just shoot us and take “their” money.


25 posted on 03/07/2011 2:46:19 PM PST by Nepeta
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To: GRRRRR

Watch for the states to start taxing Roth IRA withdrawls.


26 posted on 03/07/2011 2:46:36 PM PST by tellw
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To: GRRRRR
Whenever a rat uses the words ‘tax’ and ‘fair’ in the same sentence...hide your wallet and deadbolt the door.
27 posted on 03/07/2011 2:48:02 PM PST by JPG (May the WI GOP stay united and strong.)
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To: ReverendJames

FYI

http://taxes.about.com/od/income/qt/Social_Security.htm


28 posted on 03/07/2011 2:50:07 PM PST by Mears
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To: EBH

The idea was that the taxes would be deferred, and then when accessed later, you would be taxes at a lower rate than you were paying when it went in.

NOW, it seems apparent that the reality will be, they will tax it at a HIGHER rate, than when it was put aside.

LIARS. Politicians are thieving liars.


29 posted on 03/07/2011 2:50:40 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: GRRRRR
Why do the Democrats want retired people to leave the state?

Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)

LonePalm, le Républicain du verre cassé (The Broken Glass Republican)

30 posted on 03/07/2011 2:54:01 PM PST by LonePalm (Commander and Chef)
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To: petercooper
Nope, the maintain physical possession bars. Gold and especially silver.
31 posted on 03/07/2011 2:59:24 PM PST by traderrob6
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To: Reddy

We’re already in retirement with a little savings. We’re thinking like this. - Husband at 67 still working a lot and hustling up extra money online sales. I’m thinking I’ll need to get a job as a greeter at Walmart or else something at the new theme park as long as I can stand on my pegs.

That Senator who said we retirees are sucking at the gubmint tit is asinine. For many, many years (before they changed the rules mid-game on us) we paid into that SS system like good little citizens. That Senator is probably pulling down the equivalent of $250,000.00 per year; meantime he’s badmouthing US and HE’S the one sucking at the tit and has done for many years. While he’s raided the SS fund in order to deliver pork as bribes to his voters for re-electing him; who also likely name buildings and bridges after him. (I’ll eat my words if I’m mistaken!)


32 posted on 03/07/2011 3:01:51 PM PST by Twinkie ( PEACE)
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To: GRRRRR

Are there any people in IL that want to really help their state?


33 posted on 03/07/2011 3:04:06 PM PST by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: Mears

You’re taxed on anything over $25,000. Say you get SS and work a PT job and have a pension. The way it works is you take one-half of what you receive from SS and add in anything else. If the total comes to under $25,000 (and you’re single) you pay no tax. Anything over that you’re taxed. But a lot of that goes to the side when you add in your standard deductions.


34 posted on 03/07/2011 3:07:18 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White.)
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To: GRRRRR

Will the last person leaving Illinois please turn out the lights? Thanks much.


35 posted on 03/07/2011 3:07:26 PM PST by RightOnline
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To: svcw

YOU DAMN BETCHA! Unless you roll over. You have to take distributions at age 70.5 AND count that amount in your taxes.


36 posted on 03/07/2011 3:08:37 PM PST by TribalPrincess2U (They don't need to do another 911. They have BHO and the Fleebaggers.)
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To: Mears

I don’t know the particulars of how Illinois was thinking of taxing SS payments. If it’s the same as the fed’s you wouldn’t be paying any tax if it’s under $25,000. The way I remember reading about it was if you received say $1800 a month from SS the state would tax it 3% - 10% off the top.


37 posted on 03/07/2011 3:10:01 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White.)
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To: GRRRRR

Check financial reform and Obamacare. Both have plans to tax you for taking money out of your 401K on top of taxing it as income. Illinois is just behind on the scheme since their best and brightest were working on the theft from DC. Rahm will soon fix that.


38 posted on 03/07/2011 3:16:06 PM PST by Steamburg (The contents of your wallet is the only language Politicians understand.)
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To: GRRRRR

Illinois will simply lose these people as residents.

They can relocate to tax-free states.


39 posted on 03/07/2011 3:18:32 PM PST by LowTaxesEqualsProsperity
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To: GRRRRR

The more you tighten your grip, Vader, the more taxpayers will slip through your fingers.


40 posted on 03/07/2011 3:18:55 PM PST by Yet_Again
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To: GRRRRR

Retirees should not have to pay any taxes. Enough is enough.


41 posted on 03/07/2011 3:27:12 PM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: GRRRRR

Once you start to withdraw from your IRA, its taxed. I get ticked off because at 72 (my age) the government tells you how much you have to withdraw based on your expected life span. Its really a little more than I need to live on, but cannot do anything about it except reinvest (but not in todays stock market instability) Only in CD’s or saving accounts..If one is not withdrawing from their 401K the government is stealing from your savings account...wonder how long people with stand for it...


42 posted on 03/07/2011 3:31:27 PM PST by goat granny
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To: GRRRRR
The state does not currently tax pensions ....

they take pensions...
43 posted on 03/07/2011 3:31:27 PM PST by stylin19a
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To: GRRRRR
Retire in Panama
44 posted on 03/07/2011 3:42:37 PM PST by Extremely Extreme Extremist (Luke ScottWalker - The Force Is With You)
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To: ReverendJames

They’ve got us over a barrel no matter what we do.


45 posted on 03/07/2011 3:46:30 PM PST by Mears
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To: Mears

Have to rally the troops. Kick ‘em out - eventually, hopefully before we’re all broke.


46 posted on 03/07/2011 3:50:02 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White.)
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To: GRRRRR

The comments under the article are interesting...who knows, maybe the democrats will manage to cause enough strife to have themselves removed from power...


47 posted on 03/07/2011 3:55:57 PM PST by Wpin ("I Have Sworn Upon the Altar of God eternal hostility against every form of tyranny...")
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To: ReverendJames

I do my best but I live in MA.

Sigh !


48 posted on 03/07/2011 3:57:39 PM PST by Mears
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To: Mears

My condolences.


49 posted on 03/07/2011 4:07:31 PM PST by ReverendJames (Only A Painter Or A Liberal Can Change Black To White.)
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To: GRRRRR

Reason number 87 why I’m glad my lifetime association with Illinois has been extremely brief.


50 posted on 03/07/2011 4:20:01 PM PST by upchuck (When excerpting please use the entire 300 words we are allowed. No more one or two sentence posts!)
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