From AP - News Headlines -

Ill. Senate Leader: Tax Some Retirement Income

The president of the state Senate says Illinois should consider taxing the retirement income of some senior citizens.

Chicago Democrat John Cullerton said Monday that Illinois needs to overhaul its "outdated" tax system. As part of that process, the state could tax pensions or 401(k) plans for wealthier retirees.

He told the City Club of Chicago this could bring in roughly $1.6 billion a year, which could then be used to lower other taxes.

A spokeswoman says Cullerton would pursue the idea only if it was revenue neutral and had Republican support.

Democratic Gov. Pat Quinn said he hadn't seen Cullerton's proposal but would be willing to consider it in the interest of tax "fairness.

Categories: Economics, Government, Politics