Illinois retirees could soon be granted new protections from
the state income tax under a recent proposal in the Illinois House of
Representatives.
House Joint Resolution Constitutional Amendment 44, filed April 17 by state Rep.
Allen Skillicorn, R-East Dundee, would modify the Illinois Constitution to
explicitly prohibit Springfield from making retirement income subject to
taxation.
The proposal would amend the state Constitution’s revenue article, establishing
that the state’s income tax “does not include retirement income,” further
mandating that “there shall be no such tax imposed by the State” that reaches
the income of retirees.
While the state does not currently collect taxes on private or public retirement
income, the increasingly precarious condition of Illinois’ finances has led some
to eye Illinoisans’ retirement income as a possible source of tax revenue.
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Skillicorn’s constitutional amendment would block
those efforts.
In March, the Civic Federation estimated Illinois could generate an
additional $2.7 billion in revenue by tapping the incomes of
retirees.
The East Dundee representative is also the chief sponsor of House
Joint Resolution Constitutional Amendment 38, a spending cap that
would tie state spending to Illinois’ economic growth. Whether HJRCA
44 or HJRCA 38 advance to a substantive committee for a vote remains
to be determined by the House Rules Committee, where both proposals
currently reside.
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