from the IL GOP
CHICAGO – Earlier this week, State Senate President John Cullerton claimed in an op-ed in the State Journal-Register that, “I never had nor did I ever say I had a proposal to impose an income tax on retirement income. There is no John Cullerton retirement income tax.” However, the facts clearly dispute this:
Chicago Tribune, 3/7/11: “Influential Senate President John Cullerton on Monday suggested the state should start taxing retirement income….'It would just be a matter of fairness,' Cullerton said.”
Chicago Sun-Times, 3/8/11: “If they want to talk about, perhaps, taxing some of that retirement income — maybe tax retirement income up to age 65 — if we want to expand the tax base and sales taxes [as Mayor-elect Rahm Emanuel has proposed] — we can do that, then lower overall rates. I’m all in favor of that. That would be tax reform,” said Cullerton.
“The truth is we’re running various scenarios,” Cullerton spokeswoman Rikeesha Phelon said.
WLS Radio 3/8/11: “How would you feel about paying the state’s 5 percent income tax on your pension? State Senate President John Cullerton proposed it Monday afternoon at the City Club.”
WBEZ Radio 3/7/11: “'If we wanted to do that, we could do a floor - maybe the first $50,000 that people make wouldn't be taxed,' Cullerton said on Monday, following a speech to business and government leaders at the City Club of Chicago. ‘But then we would take that money and lower other people's tax rates. It would just be a matter of fairness.’"
ABC7 Chicago 3/8/11: "'Keep in mind that Illinois is only one of two states with an income tax that doesn't tax retirement income. If we taxed pensions and other retirement income we'd collect nearly $1.6 billion more,' Cullerton said Monday.”
Capitol Fax 3/7/11: “Cullerton just told me the idea behind this proposal would be to lower overall rates. None of the money raised from taxing retirement income would be used for programs. Instead, it would be used to lower the overall income tax rate.”
WGLO Radio 3/8/11: “And now, Governor Quinn stands with Illinois State Senate President John Cullerton who thinks that taxing retirement income is something that should be considered. Cullerton says lawmakers should consider taxing pensions or 401(k) plans of retirees. He says a retirement tax could bring in $1.6 billion a year. That’s $1.6 billion out of your pocket and out of the Illinois economy.
In fact, Cullerton’s speech to the City Club of Chicago where he made the proposal to tax retirement income can be seen here.
“I can see why John Cullerton wants people to forget that he proposed a tax on retirement income,” said Illinois Republican Party Chairman Pat Brady. “But he can’t escape the facts and Illinoisans should continue to worry that Democrats like Cullerton may resurrect the retirement tax. After all, they raised the income tax much higher than they promised during last year’s campaign.”
Brady said that the Illinois Republican Party continues to offer a petition for citizens to voice their opposition to the retirement tax at Cullertown.com. The petition has already been signed by several thousand residents.
