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Cullerton: Time To Tax Retirement Benefits

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State Senate President John Cullerton

State Senate President John Cullerton (Credit: CBS)

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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.

View Comments
  • southside

    Hey Cullerton, stop the spending. I am trying to be responsible by putting funds into a 401k so I can retire. Now you don’t want me to do that. Hopefully, your nanny state will take care of me when I get old.

  • SICK OF THE COURPPTION

    ….no!..time to get rid of all the family and friends, and lackie…stop the corruption, YOU take a pay cut 50% after all this is public service…not politicial carreeres….two term limit, all talks MUST be held in public and when they are walking around the floor a tape is on of them talking “business”…WE the PEOLPE had enough…

  • Roberta Waker

    Where is the ACLU??? This is just more discrimination against the seniors of this country and the ACLU is hiding. Oh, I forgot, we are LEGAL Americans and we don’t have any rights.

  • Robert Jurish

    Sjow some leadership by example and YOU take that 50% pay cut and share the pain with the rest of us. Also rescind that outrageous pay raise of a few years ago. After all, YOU and your fellow representatives spent what we did not have!

  • rich

    Pat quinn issued a response, I can’t believe anyone voted for this guy, he’s done nothing more than lie to the folks in Illinois and now this moron wants to tax money we worked damn hard to save. How about these two people just leave the state of Illinois and never return. The people in the state of Illinois don’t need either of them. Here I have an idea for both of them, STOP the Damn spending!

  • Gerald Spencer

    What are those states that had growth high enough to gain House seats? The ones that do not have personal income tax, Eventually, they will, the Feds cannot bail them out forever.

  • Wendy Conroy

    Whose fault is it anyway that these politicians can do what they want?
    The fault lies with the people of Illinois. They vote the same people in to office year after year after year.

  • Mr Cullerton

    All retired city,county,state,employees are penelized 60% of what they would normally have gotton from Social Security due to the 1981 Reagan/Rostencowski law.We retirees with pensions took those jobs in the first place for there future security in our old age when we haven`t anymore
    earning power.ANYONE could have sought those jobs as we did many chose private industry instead,folks don`t hate hate because we took the public jobs
    and you didn`t.We retired seniors are being taxed enough already,I personally
    am barely able to keep my head above water on what I recieve.
    President Cullerton please don`t hurt the little guy any further.

  • Steve

    I have a better plan that I would like to put forward and hope you can suggest on air: “As a tax paying citizen and Illinois resident, I propose we raise the tax rate on politician wages and benefits…after all, they are the ones who got our state in to this mess.” Why is nobody looking at their tax rate and benefit reduction? Raise their tax rate to 60%, and if that does not get results, raise it again until they leave office and we can get someone in place that can do the job for our state.

    Until the politicians know that residents of our state hold them responsible and put the accountability on their shoulders, Illinois workers and retires will continue to pay for their bad judgment.

  • jJerry O Henderson

    Why not put a two term limit on all elected offices in the state of Illinois?That way at least,They wont be able to rip us off for,10 20,30,40 years.Illinois elected officials have a tendency to use their office,for friends and family anyway,They give a Damn less about the citizens.Granted most Politicans are about the same in this Glorious Country of OURS.They are not to be Trusted.

  • Rick

    Those of us paying attention to the facts rather than the “news” saw this one coming. It was long ago aparent that Quinn and the Public Employee Unions were going to have to pay for the corruption and cronyism. Our pensions are standing there temlpting these corrupt politicians like dangling a sausage in front of a hungry dog.

  • EDDIE CLARK

    i COULD HAVE AKEN A JOB IN PRIVATE INDUSTRY MAKING MORE MONEY BUT CHOSE STATE GOV INSTEAD WHICH HAD A MORE STABLE JOB SITUATION. DO NOT CRY BECAUSE YUOU CHOOSE TO WORK OTHER THAN GOVERNMENT, WHERE STABILITY IS NOT THE NORM AS FAR AS EMPLOYMENT. MIGHT NOT MAKE AS MUCH AS IN PRIVATE INDUSTRY BUT i WILLBE HERE LONGER.

  • mike

    DON’T PAY YOUR TAXES YOU CHUMPS!!! Tell them to go to hell!!! Want to make change really happen? DON’T PAY ‘EM A DIME!!! If enough people joined in a REAL TAX BOYCOTT you’d see some changes in a hurry! Don’t like YOUR government? Send it back!!! It’s YOUR RIGHT!

  • WOZ

    DEMOCRATS……..TAX TAX TAX TAX TAX TAX TAX TA TAX TAX TAX TAX TAX THAT’S ALL THEY KNOW!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Jim

    Air Tax Imminent – Illinois leaders have run out of tax revenue streams so they have voted to tax the air. One politician was stated as saying “we’ve been giving this stuff away for free for a long time, now it’s time to make a little money out of the deal so we can sustain our salaries and pension benefits”. Another politician was caught saying “These taxpayers are idiots! You use complex words like “and”, “to”, or “free” and they will vote you in a heartbeat! I love Illinois!”. On a side note; the Illinois proposal to patent H2O has been denied by the federal government thus resulting in another planned income tax hike. The new tax rates will require taxpayers to pay 99% of their income as taxes which some politicians see as a giveaway while others see it as “very fair”. I’m thinking we’ll see this article in 10 years or so! ;p

  • Ted

    I have an idea. Put all politicians on the Social Security and Medicare plan and drop their pensions an retirement medical. That will save a lot and they might find out how most of us survive. Enact two term limits so that we can get rid of these career politicians and get some representative government once again. Retirees have paid taxes on all they earned, they got taxed for Social Security and Medicare through out their career and now this mope wants to suck more out on the same money.

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