We Oppose Taxation of Retirement Income!

 

This just in from Springfield....

Members of the Illinois House have an opportunity to stand with 1.7 million AARP Illinois members and thousands of retirees across the state to oppose the taxation of retirement income.  House Resolution 890 filed yesterday by State Representative David McSweeney (R-Barrington Hills) earned the support of AARP Illinois for its advocacy on behalf of Illinois’ retirees and its unwavering resolve to not permit the taxation of retirement income.

 

“Retirees of Illinois did not create today’s state budget crisis and should not be singled out as the top-grossing revenue option to rebuild our state’s economic outlook,” said AARP Illinois State President Rosanna Márquez.

 

Proposed plans to tax retirement income will make it harder for older Illinoisans to pay for basic necessities, including groceries, medication, and utility bills, ultimately raising costs to the government.  Older Illinoisans currently struggle to make ends meet on fixed incomes as Social Security remains the primary source of income for 1 out of 5 retired Illinoisans.

 

Retirees are not immune from the payment of federal income taxes and state and local taxes, including motor fuel taxes, sales taxes, and the second-highest property taxes in the nation: $3,939, just a few dollars behind New Jersey’s $3,971.  The taxation of retirement income will drastically limit retirees’ quality of life in Illinois and may serve as a catalyst to relocate to a more tax-friendly state.

 

Márquez continued, “AARP maintains its position that we need comprehensive reform proposals on the table, starting with an evaluation of a revenue system that aims to make life better for all, including retirees, working families and low-income households.”

 

Calls for taxing retirement income fail to acknowledge the vast number of older Illinoisans who continue to contribute financially to the well-being of their children and grandchildren, and act as a primary caregiver all while living on a fixed income.  Taxing retirement income will minimize a retiree’s ability to care for their loved one’s needs and provide assistance with food, housing, transportation and medical costs.

 

Márquez added, “Illinois needs a comprehensive look at all taxes paid by Illinois residents and businesses, and an equitable tax reform approach to raise revenue, rather than a piecemeal approach shouldered by Illinois’ retirees.”

 

AARP Illinois urges all members of the House of Representative to become the voice and champion for older Illinoisans and retirees in their district by co-sponsoring House Resolution 890.