Skip to comments.Illinois Democratic Leader Floats Tax on Some 401K Retirement Savings
Posted on 03/08/2011 6:59:28 AM PST by KeyLargoEdited 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Chicago Democrat John Cullerton said Monday that Illinois needs to overhaul its "outdated" tax system.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 ...
This will be called “reform.”
Would it be cynical of me to assume that union pensions would be exempt from such taxation?
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.
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
If I was in their shoes my RV would be warming up now.
The laboratories of democracy have become the stomping grounds for socialists.
The withdrawals already are taxed as ordinary income, maybe this guy needs to know the current laws before he tries to change them.
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.
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.
Its all good. You and I will get to bail CA out ,too.
“Lawmaker Introduces $165 Billion Union Pension Bailout Bill”
“Unions want to dump pensions on taxpayers”
...and it will be a lot more than $165B
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.
Who will self destruct first, Charlie Sheen or Illinois democrats? Place your bets.
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
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.”
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.
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.
Penny Pritzker worth 1.7 Billion.
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.