My State Senator, Sue Rezin, and her Republican colleagues have been complaining about the proposed state budget. Governor Pritzker countered by asking the Republicans to put forth their own budget so it could be examined. They have refused to do so. I have always found it is far easier to criticize if you don’t have a better idea.

            I think it is time for both parties to join together and tax state retirement checks at the time they are issued. I have been unable to learn how much it would bring into the treasury. By deducting the tax at the time of distribution, the tax would be levied before it sent to pensioners in or out of Illinois. This tax would impact our family income because my wife gets a check each month from the teacher’s pension.

            I asked a state Supreme Court judge if it would be constitutional. The judge had recently ruled on the constitutionality of revising the retirement plan as being illegal. He agreed taxing the proceeds did not affect the plans since the tax was outside the plans.

            Fairness dictates we all pay our fair share. I suggest the proceeds to go to pay down the pension debt. It will take years to pare it down. The state would continue to pay the amount specified but the pension money would reduce the Thompson/Edgar ramping increase, if not eliminate it.

            Whether other retirement plans would also be taxed is up to the intestinal fortitude of our elected Representatives and Senators. I guess both require guts and Springfield seems to be short of tackling the problems — they just complain.

Governor Pritzker wants Illinois to have a graduated tax almost all other states have. Lots of innuendos and misinformation are being put out by those big money interests who don’t want to park with a dollar they can’t hide. The increase in income tax won’t occur until the person makes over $250,000. I’m surprised 3% of us make that much after being able to hide so much of their income. One of the ads says the change will increase the number of people leaving the state. I would think they would check the other state’s taxes first.

I keep saying hiding income, because that’s what using deductions really is. Wouldn’t it be simple to do what most states do and tax the federal adjusted gross income amount? No double dipping on real estate tax, seniors, or pensions. There are many more ways to hide money from Springfield. I have mentioned these three because we and tens of thousands of others haven’t paid state taxes for year. A real fair tax would be to eliminate all deductions and lower the tax to 3 1/2% for the first $250,000 (keyed to cost-of-living) and 6 % for all over. Taxes could be done on a post card. I think that will make the state more money than now and be fair. Oh yes, companies and corporations like Amazon which doesn’t pay any Federal Tax and makes billions of dollars each year, would have to pay at least 1% of their income from operations in Illinois.

Isn’t my proposal fair to everyone?

The voters of Illinois are about to be voting on whether or not the state constitution should be amended to allow for a graduated income tax. Some people would like for us to think Illinois would be the only state with a graduated tax. My Almanac says thirty-two states have one already. Six states have a percent tax on income and three on investments only. Nine either depends on resource sales, corporate taxes, or real estate taxes among the usual myriad of others.

Texas for example, does well when oil prices are high but when the price was in the low teens, the state had almost no income and suffered greatly.

Almost all the states taxing income would cause me to pay more than people of my income would pay. The graduated rates on those states go from very low to very high quickly.

Remember all states have expenses and they must have revenue to pay for them. Illinois doesn’t have oil like Alaska and Texas or does it have minerals with western states. Florida has none but if you have ever visited there then you know you left a lot of money in ‘Florida taxes.

Illinois’ problems may be we don’t tax as much as most states and we spend too much on bad ideas. We have been looking for a place to move to for decades but we always find other states or areas are less desirable for one or the other of us.  Illinois has water, its green, few tornadoes, and no hurricanes, not too hot in summer or cold in winter. We benefited from living here so here we will stay and take vacations to places we don’t want to permanently live.

Check all types of taxes and conditions before moving to another state.