Kay sponsors resolution urging no taxation of retirement income

From Illinois Business Journal news services

A resolution was recently introduced in the Illinois House urging the legislature not to consider taxing retirement income. The resolution was co-sponsored by State Rep. Dwight Kay, R-Glen Carbon.

The current tax code in the state  does not tax income for retirees. A decision to tax retirement income, which has been discussed in some circles, would be detrimental to many retirees who live on fixed incomes, Kay said. While retirees do not pay state income tax in Illinois they are still subject to a multitude of other taxes such as federal income tax, property tax and sales tax.

“With many retirees on a fixed income and worried about how they are going to pay for health care the last thing we need to do is suddenly tax their income,” said Kay. “Pushing retirees to the brink through new taxes could strain budgets so much that many retirees decide to leave our state. We should be encouraging retirees to stay in Illinois, not leave.”

The resolution, HR890, was introduced Dec. 2 and Kay was lining up co sponsors as recently as the past week. It awaits action  in the House.