Cullerton: Time To Tax Retirement Benefits

SPRINGFIELD, Ill. (CBS) — People might think their retirement benefits are safe from taxes, but that may not be the case for long.

Illinois State Senate President John Cullerton (D-Chicago) says lawmakers should consider taxing pensions or 401(k) plans of wealthier retirees.

In defending the idea, he used former Gov. Jim Edgar as an example.

“Former Governor Jim Edgar’s pension is $130,000 a year, and he pays no tax,” Cullerton said. “Someone like him would probably be willing to pay a state income tax on a portion of that.”

Gov. Pat Quinn issued a response to the idea Monday.

“I think everything should be looked at; you know, how we go about it is obviously something we have to work together on,” he said.

Cullerton says a retirement tax could bring in $1.6 billion a year.

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