March 8th, 2011 at 10:12pm Ted Biondo
Senate President John Cullerton , D-Chicago, suggested at a City Club of Chicago luncheon on Monday that the state should start taxing retirement income at the new rate of 5%. Illinois currently does not collect taxes on pensions, 401(k) plans and Social Security.
Retirees’ tax rate would jump from zero to 5%, due to the 67% increase in income tax approved by the Illinois General Assembly Democrats in January of this year, on the last day of the lame duck session, with NO Republican votes. Taxing all retirement income would bring to the state coffers an additional $1.6B - $1.9B depending on the source.
My take on this…….
Social Security recipients have had no increase in their checks for two years and now this proposal would mean a 5% reduction. Many seniors simply can not afford what amounts to a cut in income. Shameful in my opinion.