Cary, IL – Illinois does not tax retirement income and State Rep. David McSweeney filed a bipartisan House Resolution to keep it that way. The Civic Committee of the Commercial Club has recently proposed a tax on retirement income. Rep. McSweeney introduced House Resolution 32, a bipartisan measure strongly opposing any effort to impose a tax on Illinois retirees.

“One of the few tax benefits we have in Illinois is protection for retirement income,” McSweeney said. “We do not need to hold retirees accountable for the out-of-control spending that has put our state’s financial future at risk. I will continue to fight to protect Illinois senior citizens. Instead of raising taxes, we need to cut unnecessary spending as well as reform pensions and Medicaid."

“Retirees did not create the current state fiscal crisis, nor did they anticipate in their lifetime of planning for their retirement years that their retirement income would be fully taxed by the state,” said Bob Gallo, State Director for AARP Illinois, which has 1.7 million members.  “It is unfair and shortsighted to propose balancing the state’s budget on the backs of these residents.”

Gallo added, “Retired seniors pay more than their fair share of other taxes, including high property taxes, and a combined sales tax rate nearing as much as 10 percent.  Illinois’ older residents also contribute to the state’s economy to the tune of $358.8 billion, or 46% of Illinois’ GDP, despite only making up 34% of the state’s population. Illinois would be smart to consider maintaining and adopting programs and policies that keep this important economic engine in our state, rather than considering policies that drive retirees, and their contributions to our state’s economy and workforce, elsewhere.”

HR 32 has been introduced with bipartisan co-sponsors and awaits assignment to a House Committee.

From Illinois Policy:

"State Reps. David McSweeney, R-Barrington Hills, and Jonathan Carroll, D-Northbrook have co-sponsored a bill that would permanently lower property tax levies statewide by 10 percent.

The proposal, House Bill 320, would expand the Property Tax Extension Limitation Law, or PTELL. PTELL limits the rate at which non-home rule communities in certain counties can increase their property tax levies. HB 320 would expand similar curbs to all taxing authorities in Illinois, regardless of county or home rule status.

“We have to do more than just stop property taxes from increasing – we must find ways to lower the property tax burden in Illinois,” McSweeney said in a statement.

Under HB 320, all Illinois taxing districts would phase in a 10-percent levy reduction during a two-year period. The levy is the annual amount a government requests from property taxpayers. Local governments would lower those requests by 5 percent in the 2019 levy year, and another 5 percent in 2020. The measure would freeze those 2020 levies, which could only increase again if voters approved a ballot question."
State Rep. David McSweeney has launched another attempt to pass a law that would eliminate the option to join the state pension system for new legislators in Springfield.

House Bill 293 aims to prevent newly appointed or elected lawmakers from participating in the General Assembly Retirement System beginning at the start of the next General Assembly in 2020.

McSweeney, R-Barrington Hills, voluntarily opted out of the state pension system when he became a lawmaker. He contends that legislators receive “excessive benefits” compared with other public servants.

Read more at the Northwest Herald