Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

Reply
 
Thread Tools Search this Thread Display Modes
  #881  
Old 02-20-2019, 07:12 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,117
Blog Entries: 6
Default

https://wqad.com/2019/02/19/second-i...hpPEoZw0Z86oRE

Quote:
Second Illinois policy group pushes to tax retirement, AARP pushes back
Spoiler:
CHICAGO (Illinois News Network) — A second state policy group has come out in support of taxing retirement dividends in Illinois to help balance the state’s books.

Last week, the Civic Committee of the Commercial Club of Chicago released a report saying the state should tax retirement and pension income to help pay down the state’s backlog of bills. The Civic Federation, another high-profile Chicago-based nonprofit, suggested the same Wednesday, saying it would put another $2.5 billion in taxpayer money into the state’s coffers.

“Out of the 41 states that impose an income tax, Illinois is one of three that exclude all pension income and one of 27 that exclude all federally taxable Social Security income,” the report said. “To raise the equivalent amount of revenue by increasing the rates on the existing tax base would require a hike of approximately 0.50 percentage points in the personal income tax rate and a proportionate 0.85 percentage points in the corporate income tax.”

The Civic Federation says the tax exclusion amounts to the largest tax break the state gives and will only grow over time as the population ages.

But representatives of the nation’s largest public interest group representing seniors warn that the exclusion of retirement in the state’s income tax code is a big reason some retirees maintain residency in Illinois and pay the other high costs associated with living in the state.

“Illinois has the highest property taxes in the nation, the sales tax in many communities is nearing 10 percent,” said Ryan Gruenenfelder, director of advocacy and outreach for AARP Illinois. “We have notified our members and many of them are responding, saying ‘if this happens, I am going to leave the state of Illinois.”

State Rep. Allen Skillicorn, R-East Dundee, has introduced a constitutional amendment that would forbid taxing retirement and pension income.

“The tax-eater crowd certainly wants every tax that they can get,” Skillicornsaid. “I don’t know if either [a retirement tax or his amendment] is going to pass.”

In an October AARP survey, 70 percent of people older than 25 opposed a tax on retirement income.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 12:58 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.10822 seconds with 9 queries