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youbet · 07-19-2015, 01:04 PM

Quote:

Originally Posted by rayinpenn

The point is will Detroit, Chicago etc. be able to restructure their debt and pay pennies on the dollar to pensioners? Scary stuff.
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I believe the answer for Detroit already exists. What do you think of the Detroit outcome?

youbet · 07-19-2015, 01:07 PM

Quote:

Originally Posted by steelyman

Sigh is right.

One more time: taxing retirement income is tax policy, not a constitutional matter. Tax policy is not under what is referred to as the "impairment clause" in the IL Constitution.

Remember, the poster you're commenting to stated what he "expects" to happen. Throwing in facts or data complicates things...........

Greencheese · 07-19-2015, 01:11 PM

Taxing retirement income more or less has to happen, the state can't fix the budget issue with fees and sales tax increases alone. Given that the recent governor election was centered around the "temporary" income tax hike, expanding the taxable base is the best front forward.

ripper1 · 07-19-2015, 01:22 PM

Quote:

Originally Posted by travelover

The Detroit city pensioners also lost their health care, which was a significant hit for some of them.

City of Chicago Retirees health care will also be eliminated by end of 2016. Not that it is a bargain anyway. I am paying almost 1400 dollars a month for premium for myself as an annuitant and spouse.

ripper1 · 07-19-2015, 01:27 PM

Quote:

Originally Posted by youbet

Really? I'm interested in this as it would have an impact at our house. Can you mention where you got this info?

I don't see how if they start taxing retirement accounts that public employees would be exempt. That is absurd to me.

ripper1 · 07-19-2015, 01:34 PM

Quote:

Originally Posted by Greencheese

Taxing retirement income more or less has to happen, the state can't fix the budget issue with fees and sales tax increases alone. Given that the recent governor election was centered around the "temporary" income tax hike, expanding the taxable base is the best front forward.

Well, if taxing the pensions is the answer I think most people will find keeping their 3% compounded cola is a better trade off. Do the math.

youbet · 07-19-2015, 01:39 PM

Quote:

Originally Posted by ripper1

I don't see how if they start taxing retirement accounts that public employees would be exempt. That is absurd to me.

I agree. Lots of sensationalistic comments get flung around on these subjects to stir up emotions and tempers.

Yes, taxing pension income is one way Illinois could increase revenue.

No, public pensions will not be excluded IMHO.

purplesky · 07-19-2015, 01:44 PM

Is it Illinois that is considering taxing streaming services like Netflix.

To increase state revenue.

ERD50 · 07-19-2015, 01:44 PM

Quote:

Originally Posted by steelyman

Sigh is right.

One more time: taxing retirement income is tax policy, not a constitutional matter. Tax policy is not under what is referred to as the "impairment clause" in the IL Constitution.

I'm not really disagreeing with this, but I do think that the distinction will be decided by the IL Supreme Court (if it gets to them).

They may or may not agree with you or me. I'm certain they won't ask my opinion on the matter. And I will not attempt to predict their decision.

I do think a lawyer will likely make the claim that taxing the State pension is impairing it. It's at least a shot at protecting the State pensions from being taxed, and people tend to want to protect their property, and if a lawyer can make a buck by trying, they will.

If the Federal Govt decided to place a 100% income tax rate on SS, effectively making it worth zero, wouldn't you consider the value of your SS to have been 'impaired'? Or would you say, "well, I'm still getting it"?

-ERD50

youbet · 07-19-2015, 02:05 PM

Quote:

Originally Posted by ERD50

I do think a lawyer will likely make the claim that taxing the State pension is impairing it.

I do think a lawyer will likely make the claim that taxing the State pension is not impairing it. In fact, I'm positive of it.

youbet · 07-19-2015, 02:07 PM

Quote:

Originally Posted by purplesky

Is it Illinois that is considering taxing streaming services like Netflix.

To increase state revenue.

Do you mean Illinois exclusively or as one of several?

steelyman · 07-19-2015, 02:08 PM

My personal opinion? I think it's a bad idea that my IL pension is untaxed by the State. I've enjoyed (much of my life) the great things about IL and what it offers and I believe I should pay my fair share.

But that's what it is now. I'll do my (maybe) first-and-only Roth conversion in 2015 since IL tax will not be applied, but I will pay another state's tax thereafter.

ERD50 · 07-19-2015, 02:14 PM

Quote:

Originally Posted by youbet

I do think a lawyer will likely make the claim that taxing the State pension is not impairing it.

No doubt that any claim of taxes impairing the pension will also be challenged by another lawyer on the other side. The lawyers will make money all the way 'round!

In case I wasn't crystal clear to any previous posters, I was just commenting on what I expect could happen. I'm not commenting on the merits (or lack of), just that the arguments will likely be made (if it comes to that).

-ERD50

youbet · 07-19-2015, 02:35 PM

Quote:

Originally Posted by ERD50

No doubt that any claim of taxes impairing the pension will also be challenged by another lawyer on the other side.

Pretty safe statement since it's already happened..... !!

ERD50 · 07-19-2015, 04:35 PM

Quote:

Originally Posted by youbet

Pretty safe statement since it's already happened..... !!

I know there have been challenges to changes, but I wasn't aware of the tax issue specifically. When was that?

It's not the first time I've predicted the past!

-ERD50

purplesky · 07-19-2015, 04:47 PM

Quote:

Originally Posted by youbet

Do you mean Illinois exclusively or as one of several?

I thought I heard Illinois is considering it.

steelyman · 07-19-2015, 05:52 PM

Quote:

Originally Posted by purplesky

I thought I heard Illinois is considering it.

You could also listen to some drunk guy on the next barstool who says, "Well, I got a friend who has a buddy down at the club who says...". Then they run off to an Internet forum to declare "facts" like some wizened old Gandalf.

purplesky · 07-19-2015, 06:08 PM

Quote:

Originally Posted by steelyman

You could also listen to some drunk guy on the next barstool who says, "Well, I got a friend who has a buddy down at the club who says...". Then they run off to an Internet forum to declare "facts" like some wizened old Gandalf.

So apparently Chicago has a new "cloud tax" that taxes streaming services like Netflix.