Though there’s no official proposal for a tax on retirement income in Illinois, it’s being talked about in working groups.

Gov. Bruce Rauner said of all the ways being floated to find more revenue, this one is a bad idea.

“The one thing that really stands out to me that I would really not be comfortable with is a retirement tax. That one I just don’t think is the right thing to do,” Rauner said.

Despite that, Illinois Senate President John Cullerton, D-Chicago, said it’s still on the table. 

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“That’s one of the things that’s being discussed in the working group that we need to continue to work on,” Cullerton said.

AARP Illinois Manager of Advocacy and Outreach Ryan Gruenenfelder said this is a bad idea in part because many retired people have not planned for an income tax.

“They’re living on a fixed income. They have limited ability to rejoin the workforce. They face high health care costs that are rising every year, and they have little ability to save money because of that fixed income,” Gruenenfelder said.

Gruenenfelder said a recent poll conducted by AARP indicates many retired people are willing to call the moving trucks if their retirement is taxed.

“Almost 60 percent said that they would consider moving to another state if Illinois starts taxing retirement income, which I know has been a big concern among Illinois’ elected officials,” Gruenenfelder said.

Ten states, including Illinois, do not tax retirement income, according to


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