The Pritzker Tax Hike Amendment would increase the average retiree’s income tax in Waterloo by up to $3,748, a 9.3-percent tax increase.
Currently, retirees in Illinois are not subject to paying state income tax. With Governor Pritzker’s new proposal, retirees on average would have to pay an income tax of 4.7 percent while some will have to pay as much as 9.3 percent. According to Illinoispolicy.org, retirees are one of the groups that has been least likely to leave the state. If their income is threatened by a new tax, that could change.
While claiming the progressive tax is not a retirement tax, Vote Yes For Fairness invited Daniel Biss to speak at their virtual rally. In 2018, Biss said, “I would only consider taxing retirement income once we’ve amended the Illinois Constitution to allow for a progressive income tax.” Smartasset.com states that while Illinois currently has no tax on retirement income, the sales and property taxes are among the highest in the country.
| Income | Taxes paid at 4.7% | Taxes paid at proposed 9.3% |
|---|---|---|
| $25,000 | $1,175 | $2,325 |
| $50,000 | $2,350 | $4,650 |
| $75,000 | $3,525 | $6,975 |
| $100,000 | $4,700 | $9,300 |
| $250,000 | $11,750 | $23,250 |
| $500,000 | $23,500 | $46,500 |
