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updated: 12/17/2015 5:21 PM

AARP: Don't tax Illinois retirement income

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  • AARP leaders asked state officials not to apply the income tax to retirement income.

    AARP leaders asked state officials not to apply the income tax to retirement income.
    Associated Press File Photo

 
 

The state's leading lobbying group for retirees said today it'll push back against attempts to tax Illinoisans' retirement incomes as the battle over state spending approaches the end of its sixth month.

AARP Illinois Director Bob Gallo said the state shouldn't pin it on retirees to raise new revenue.

"Millions of Illinoisans, especially older and retired individuals, are living on fixed incomes or struggling with the rising costs of essential necessities," Gallo said.

Some states tax retirement income, but it's exempt in Illinois.

The idea of applying taxes to such income has been floated privately this year by some lawmakers and publicly by some interest groups, but no formal legislation has been put in writing.

In the past, the suggestion of taxing retirement income has been seen as a politically dangerous idea by officials in both parties.

Earlier this month, state Rep. David McSweeney, a Barrington Hills Republican, filed a nonbinding resolution opposing the idea, and state Sen. Tom Cullerton, a Villa Park Democrat, made a similar move today.

"The exclusion of taxing retirement income encourages residents to remain living throughout their retirement in Illinois and encourages newly retired Americans to relocate to the state," McSweeney's resolution reads.

Still, Illinois' deficit is growing as it continues to make court-ordered payments without a budget in place.

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