State leaders are not discussing how Illinois can bring in more tax money. But the state's growing deficit means they'll have to get there one day. The leading group for retirees is on the offensive over one particular tax break.
Illinois is a rare state that does not tax retirement income. No politician has openly called for starting such a tax, but it's an option.
The nonpartisan Civic Federation recommends it as a way to stabilize the state's finances, especially as the number of senior citizens living in Illinois is projected to grow.
The AARP's Bob Gallo says seniors don't want their pensions and Social Security taxed.
"They know it would have a major detrimental impact on their household budgets, on their ability to prepare for and enjoy a secure retirement, or even on their ability to stay retired,” Gallo said.
Illinois could opt to tax only retirement income above a certain level -- say, $50,000. Advocates of that route argue that seniors who don't have enough money to retire still have to pay income taxes, while those who are well off enough to stop working don't.
