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WNIJ's summary of news items around our state.

Taxing Pensions And Social Security Is An Option For Illinois Revenue

Flickr user Pictures of Money / "Money" (CC BY 2.0)

Illinois workers get an added bonus once they retire -- they don't have to pay taxes on pension or Social Security checks.

It's one possible change the state could consider as it hunts for more money.

Illinois is a rare state that taxes income on a regular paycheck but not on retirement.

Fiscal experts -- like the non-partisan Civic Federation -- say that, as Illinois' population ages and there are more retirees and pensioners, the government will increasingly lose out on a source of revenue.

The Civic Federation recommends Illinois lift that exemption, on a limited basis. It still wants to exclude all Social Security and other retirement income of less than $50,000 from getting taxed.

"I'm personally not a fan of taxing retirement income," said Gov. Bruce Rauner, "but I don't want to jump in early."

Rauner says he's open to new taxes if Democrats get on board with his agenda to weaken unions and boost businesses.

The AARP says seniors on fixed incomes shouldn't have to bear the brunt of Illinois' fiscal problems.

Amanda Vinicky moved to Chicago Tonight on WTTW-TV PBS in 2017.
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