October 28th, 2020
PROPOSED PRITZKER INCOME THEFT AMENDMENT THREATENS RETIREMENT INCOME
If the proposed graduated state income tax proposed by Illinois Gov. Jay Robert “J. B.” Pritzker is approved in the November 3 statewide election, retirement income of Illinois residents very likely will be taxed, a new study shows.
Every state with a progressive tax also taxes retirement income, according to a study by Ben Szalinski of Illinois Policy. “States with progressive income taxes are not friendly places for retirees: Each of them also taxes retirement income,” writes Szalinski.
“All 32 states with a progressive income tax impose some sort of tax on retirement income from 401(k)s, IRAs, Social Security and pension benefits.”
“The threat to the retirement income of Illinois residents would be another ominous result of Pritzker’s horrible proposed amendment to the Illinois Constitution,” said Jim Tobin, economist and head of the Taxpayer Education Foundation (TEF). “Taxing retired persons also was discussed or proposed by Illinois state Treasurer Michael Frerichs, former Chicago Mayor Rahm Emanuel and the Civic Committee of the Commercial Club of Chicago.”
Four of the five slowest growing states – West Virginia, Connecticut, Vermont and Mississippi – all have progressive income taxes, according to the Illinois Policy Institute. The fifth state on the slow-growth list is Illinois. The fastest growing states – Florida, Texas, Utah, Colorado and Nevada – have no state income tax or a flat tax.
“The November 3 election will determine if Illinois has a fighting chance of surviving economically,” said Tobin. “If Pritzker’s graduated income tax amendment passes, retirees will join the flood of taxpayers fleeing the state.”