Retirement Income Tax Latest In Progressive Tax Debate
October 8, 2020 12:49PM CDT
Gov. J.B. Pritzker outlines his plan to replace Illinois’ flat-rate income tax with a graduated structure with rates ranging from 4.75 percent to 7.95 percent, depending on income, at a state Capitol news conference on Thursday, March 7, 2019 in Springfield. The Democrat says his plan would generate $3.4 billion in additional revenue, make the wealthy pay more, and would keep tax bills the same or make them lower for 97 percent of filers. Only six states have flat-rate income taxes. (AP Photo/John O’Connor)
The latest conversation about the progressive tax that will be on Illinois’ ballot next month is focusing on taxing retirement income. Republicans say Governor JB Pritzker doesn’t want to talk about taxing retirees, but Republican leaders say the progressive tax opens the door to it. Illinois currently doesn’t tax retirement income, and the idea is very unpopular with voters.
