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told a City Club of Chicago luncheon that should take place as part of an overall look at what he said was Illinois' "outdated" tax system.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.
Its us or them.
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...
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.
Precious metals- a fund?
They should just shoot us and take “their” money.
Watch for the states to start taxing Roth IRA withdrawls.
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.
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)
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!)
Are there any people in IL that want to really help their state?
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.
Will the last person leaving Illinois please turn out the lights? Thanks much.
YOU DAMN BETCHA! Unless you roll over. You have to take distributions at age 70.5 AND count that amount in your taxes.
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.
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.
Illinois will simply lose these people as residents.
They can relocate to tax-free states.
The more you tighten your grip, Vader, the more taxpayers will slip through your fingers.
Retirees should not have to pay any taxes. Enough is enough.
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...
They’ve got us over a barrel no matter what we do.
Have to rally the troops. Kick ‘em out - eventually, hopefully before we’re all broke.
The comments under the article are interesting...who knows, maybe the democrats will manage to cause enough strife to have themselves removed from power...
I do my best but I live in MA.
Reason number 87 why I’m glad my lifetime association with Illinois has been extremely brief.