A tax on retirement income in Illinois would be about as popular as wet socks, judging by commercials for and against the graduated tax question on the November ballot. Both sides say the other would tax retirement income.
The truth is that 1) no retirement tax is on the ballot, and 2) the legislature and governor could impose such a tax at any time, regardless of how the vote goes, and regardless of whether there even is a vote.
“I’ve always had the opinion that it would be fairer to tax retirement income than to exempt it,” says David Merriman, a professor and senior scholar with the University of Illinois’ Institute of Government and Public Affairs. “That would increase the fairness of the system and provide some additional revenue, and we are talking about a substantial amount of revenue that is growing over time. It would accomplish the twin goals of fairness and getting more revenue.”
Other states tax retirement income. Merriman says it could be good policy.
“It may be bad politics,” he adds. “Luckily, I don’t have to get elected.”
The constitutional amendment – which will be enacted if sixty percent of Illinoisans vote Yes – would repeal the part of the state Constitution which says Illinois’ income tax must be flat.
Region: Springfield,News,Region: Central,City: Springfield
via News – WTAX 93.5FM/1240AM https://wtax.com
October 12, 2020 at 06:24AM