Rep. David McSweeney Introduces Bipartisan Resolution Strongly Opposing an Illinois Retirement Income Tax

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.

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