TAXING RETIREMENT INCOME HAS NOTHING TO DO WITH ILLINOIS FAIR TAX PROPOSAL

WHAT WILL YOU PAY WHEN THE FAIR TAX PASSES? 

 On Friday, October 9, 2020, Eric Zorn of the Chicago Tribune Editorial Board provided an ambiguous and misleading title to his opinion piece: “Taxing certain retirement income would be a benefit of a graduated-rate tax.” 

 Buried deeper in the piece, Eric Zorn reminds us : “…”but I have to admire the successful effort to get us all talking about an issue (taxing retirement income) that isn’t even remotely on the table.” This attach/attempt led by the ultra-conservative Illinois Policy Institute, which is currently leading a legal attempt to revise the state of Illinois’ mailed proposal for the referendum as being confusing for many Illinois citizens. In short, the arguments provided in the pamphlet do not provide enough emphases for the IPI in the “reasons against” section of the explanation. And, of course, one specious argument would include the thought that retirement income would be a part two of the passage of the referendum. 

 

Mr. Zorn recalls having debated the IPI’s Austin Berg about the merits of the referendum to pass a Fair Tax in Illinois. And he reminds his reader that thus far Pritzker has “emphatically refused to put retirement income taxes on the table.” 

 But then, things become muddy. Just the lack of clarity that social media loves to swim in. 

 At first, Eric Zorn in his closing paragraphs seems to endorse the greater need for a graduated tax system for Illinois: “And the devious effort to distract us with talk of retirement income takes our eyes off the real question: Which system of taxation will best protect those toward the bottom of the income scale as we close our massive budget gap?” That’s a seriously good question. 

 Then, in a confusing 180-degree turnabout, Zorn embraces the two positions – one actual and one “not remotely any part of the question” – as the best alternative. “And it distracts us from the right answer: A graduated tax system that includes retirement income.” 

 So much for clarity. 

 Maybe one step at a time? 

Remember: only those earning more than $250,00 will see an increase in their income tax. For 97% of taxpayers, taxes will remain the same or go down; only the top 3% will see their taxes go up. To

find out what your tax would be, go to the Fair Tax Calculator:

https://www2.illinois.gov/sites/gov/fairtax/Pages/default.aspx 

 Yogi Berra once said: “You gotta be careful if you don’t know where you’re going because you might not get there.” 

 Let’s concentrate on the Fair Tax.