Rep. David McSweeney wants the state to keeps its hands off retirement income.
On Monday, the Barrington Hills Republican announced a House resolution opposing any moves to put a state tax on retirement income.
McSweeney’s measure is a response to the economic plan recently laid out by the Civic Committee of the Commercial Club of Chicago, one of the state’s leading business groups.
The Commercial Club’s plan calls for increasing the state income and corporate tax rate by 1 percentage point, as well as beginning to tax retirement income and putting sales taxes on more consumer services.
“One of the few tax benefits we have in Illinois is protection for retirement income,” McSweeney said in a news release. “We do not need to hold retirees accountable for the [state’s] out-of-control spending.”
But with massive pension debt and a backlog of unpaid bills nearing $7.8 billion, the state might be able to use an extra $6 billion in new revenue a year, which is how much the Commercial Club claims its plan could bring in.
Nonbinding House Resolution 32 has not yet been assigned to a committee.