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Illinois Democratic Leader Floats Tax on Some 401K Retirement Savings
FOX Chicago News ^ | Mar 8, 2011

Posted on 03/08/2011 6:59:28 AM PST by KeyLargo

Edited on 03/08/2011 7:02:30 AM PST by Admin Moderator. [history]

Springfield, Ill. - The president of the state Senate says Illinois should consider taxing the retirement income of some senior citizens.

Chicago Democrat John Cullerton said Monday that Illinois needs to overhaul its "outdated" tax system. As part of that process, the state could tax pensions or 401(k) plans for wealthier retirees.


(Excerpt) Read more at myfoxchicago.com ...


TOPICS: Government; News/Current Events; Politics/Elections; US: Illinois
KEYWORDS: 401k; democrats; retirement; tax

1 posted on 03/08/2011 6:59:35 AM PST by KeyLargo
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To: KeyLargo

This will be called “reform.”


2 posted on 03/08/2011 7:01:58 AM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: KeyLargo

Would it be cynical of me to assume that union pensions would be exempt from such taxation?


3 posted on 03/08/2011 7:02:29 AM PST by Trailerpark Badass (I'm sick of damn idiots)
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To: KeyLargo

I know a lot of retirees who have hung on to their IL residences and residency only because their retirement income isn’t taxed. If they change that..IL will become like a lot of other rust belt states and the retirees will move their residency to FL or TX where they already winter. IL will end up a loser with this new tax.


4 posted on 03/08/2011 7:03:48 AM PST by Oldexpat
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To: KeyLargo
Yes, I look forward to the day when Quinn gets a room in the governor’s wing of the Federal Pen
5 posted on 03/08/2011 7:03:49 AM PST by LauraJean (sometimes I win sometimes I donate to the equine benevolent society)
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To: KeyLargo

Imagine extorting almost $2 billion from the personal retirement SAVINGS of “the rich”

when Peter and Paul have to vote on whether to rob Peter, you can always depend on Paul’s vote

will the last retiree out of Chicago please turn out the lights

On the other hand, leave them on and let the dun dums who stay pay the bills


6 posted on 03/08/2011 7:06:30 AM PST by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: Oldexpat
Just a whiff of the possibility should trigger the exodus.

If I was in their shoes my RV would be warming up now.

7 posted on 03/08/2011 7:10:58 AM PST by AU72
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To: KeyLargo

The laboratories of democracy have become the stomping grounds for socialists.


8 posted on 03/08/2011 7:12:52 AM PST by PGalt
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To: KeyLargo
I hope they do. Let them tax pensions, 401Ks, everything that moves for that matter. Let them tax and spend as much as they want. Then we will see the Welfare State in its final death throes. No excuses about how those nasty Republicans are stopping the Dems from saving the state, or how if they could just tax and spend a little more, everything would be OK. To paraphrase Lincoln, let Illinois have its Socialism pure without being corrupted by the base alloy of hypocrisy.
9 posted on 03/08/2011 7:16:28 AM PST by Opinionated Blowhard ("The time will come when Winter will ask you what you were doing all Summer" -- Henry Clay)
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To: Opinionated Blowhard

The withdrawals already are taxed as ordinary income, maybe this guy needs to know the current laws before he tries to change them.


10 posted on 03/08/2011 7:24:11 AM PST by edhawk
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To: KeyLargo

The “wealthier retirees” he wants to tax will move to Florida for the full year, instead of the 3 months the spend there now. It’s not like the weather in Chicago beats Miami.

Liberals just don’t understand that wealth can move.

Works for those in red states.


11 posted on 03/08/2011 7:25:03 AM PST by Tulane
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To: KeyLargo

I don’t really understand the point of this. 401K and IRA withdrawals are already subject to federal income tax.

The only thing that makes sense is that Illinois has a state income tax (?) and these withdrawals are NOT subject to state income taxes.

Regardless, rules changes like these are the #1 reason I choose to keep my retirement savings in non-retirement accounts. I am terrified of the rules changes that will surely happen.

I just don’t trust the socialists to keep the rules in constant. I prefer to not have any strings attached to my savings.

I am most weary of Roths. It seems to be only a matter of time before Roth withdrawals are taxable if you have more than $X in total assets. Then the number will drop.


12 posted on 03/08/2011 7:32:52 AM PST by laxcoach (Government is greedy. Taxpayers who want their own money are not greedy.)
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To: KeyLargo

It’s all good. You and I will get to bail CA out ,too.

“Lawmaker Introduces $165 Billion Union Pension Bailout Bill”

http://www.freerepublic.com/focus/f-news/2520155/posts

“Unions want to dump pensions on taxpayers”

http://www.freerepublic.com/focus/f-news/2487566/posts

...and it will be a lot more than $165B


13 posted on 03/08/2011 7:35:37 AM PST by WOBBLY BOB ( "I don't want the majority if we don't stand for something"- Jim Demint)
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To: Steely Tom

bttt


14 posted on 03/08/2011 7:35:37 AM PST by BenLurkin (This post is not a statement of fact. It is merely a personal opinion -- or humor -- or both)
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To: KeyLargo
the state could tax pensions or 401(k) plans for wealthier retirees

Is there no end to the creativity that the criminal Demokrat mind brings to the search for new ways to pick our pockets? This is a story crying out for a 21st Century's Charles Dickens. It's Saffron Hill reborn with new age Jack "Artful Dodger" Dawkins, Charlie Bates, and Fagin - Democrats all.

15 posted on 03/08/2011 7:37:30 AM PST by RoadKingSE (How do you know that the light at the end of the tunnel isn't a muzzle flash ?)
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To: KeyLargo

Who will self destruct first, Charlie Sheen or Illinois democrats? Place your bets.


16 posted on 03/08/2011 7:40:14 AM PST by OB1kNOb (You just proved that advertising works by reading this message!)
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To: edhawk
perhaps they are contemplating a “wealth surtax” on people above a selected AGI

means-testing is creeping into everything, part of using the IRS and state taxes in the process of redistribution

sadly, for the progressive utopians,it will never work, even at the point of a gun once guilt, charity, and “moral persuasion” to share the cookies stops working

the socialists and their less refined cousins the marxists want to attribute wealth accumulation to luck or greed

But many wealthy people got that way by being smart and resourceful, if ya know what I mean

17 posted on 03/08/2011 7:44:23 AM PST by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: Oldexpat

BEFORE anybody from a LIB state is allowed in the South, they should be made to renounce the RAT Party, have any donations to RATs taxed at 100% rate and must never utter the words: “Back home we do things differently.”


18 posted on 03/08/2011 7:49:28 AM PST by NTHockey (Rules of engagement #1: Take no prisoners)
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To: KeyLargo

I don’t think Connecticut thought of this one. Give it another day or two and they will add it to the list of new taxes.


19 posted on 03/08/2011 7:53:09 AM PST by grb
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To: KeyLargo

They hate it when normal people work hard all their lives, save some money so as not to be a burden, and don’t ask for help. The communists want that money! To their non-functioning minds it’s UNFAIR!

Got to grab that money and give it to the lazy slobs who vote democrat.


20 posted on 03/08/2011 7:58:52 AM PST by Leftism is Mentally Deranged (Liberalism is against human nature. Practicing liberalism is detrimental to your mental stability.)
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To: silverleaf
I wonder if Obamo's money woman is in favor of this?

Penny Pritzker worth 1.7 Billion.

21 posted on 03/08/2011 7:59:43 AM PST by scooby321
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To: laxcoach

You have a decent strategy. I think also having some rental property (if you can manage it) and a pile of gold and/or silver is not a bad idea either.


22 posted on 03/11/2011 6:45:40 PM PST by MSF BU (YR'S Please Support our troops: JOIN THEM!)
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