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Sunday, December 22, 2024

Analysis: White County retiree households could pay $3,297.69 annually under Pritzker graduated income tax hike plan

Pritzker 800

Gov. J.B. Pritzker | Facebook

Gov. J.B. Pritzker | Facebook

The 2,924 retirees in White County could pay as much as $3,297.69 in state income taxes if voters approve Gov. J.B. Pritzker’s graduated tax hike amendment on Nov. 3, according to an analysis by the SE Illinois News.  

Countywide, the graduated tax plan could raise as much as $4,210,675 from retiree taxes. And statewide, such retiree taxes could raise more than $3 billion, according to the analysis.

The analysis calculates the total state income tax that would be paid if Illinois retirees were required to pay tax rates between 4.7 and 9.3 percent on their income.

The median state income tax across 50 states is 4.7 percent. Non-retiree Illinoisans currently pay 4.95 percent; Pritzker is promising to raise those rates significantly, however.

According to the U.S. Census, Illinois is home to approximately 745,000 senior retiree households, headed by someone over age 65. They currently pay no state income tax on Social Security or pension income.

While Pritzker said the tax hike is aimed at the rich, it can be applied to any demographic, including retirees.  

"The definition of 'rich retirees' is fluid," Illinois Policy reported. "Retirement taxes even have been discussed for those making $15,000." 

In fact, retirees are taxed in all 32 states that have a progressive tax.

Pritzker says his proposal, which would amend the Illinois State Constitution to allow state leaders to pass unlimited state income tax rates on people by class, job or location, is intended to increase tax revenue to fund higher salaries and richer pensions to public employees.

He expects higher income taxes to fund a 25 percent increase in the annual state budget -- an increase of $10 billion in state income taxes paid, and spending, per year..

Currently, state income tax hikes must be paid by all taxpayers and cannot be limited to specific groups, like small business owners or retirees.

Seven states now do not tax any individual income: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

Two other states – New Hampshire and Tennessee – impose only income taxes on dividends and interest.

Three states exempt pension income entirely for qualified individuals: Illinois, Mississippi and Pennsylvania.

Pension income is taxed in Arizona, California, Connecticut, District of Columbia, Idaho, Indiana, Kansas, Massachusetts, Minnesota, Nebraska, North Carolina, North Dakota, Vermont and West Virginia.

Pritzker is hoping voters approve an amendment to the state constitution that would make state income tax rates unlimited and would allow legislators to extend income taxes to senior retirement income.

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How Much More Could Seniors Pay in Your County?

Individual / HouseholdCountywide
County65+ populationLowHighLowHigh
Adams County13,218$1,678.09$3,320.47$9,090,571$17,987,694
Alexander County1,262$1,630.99$3,227.29$872,165$1,725,780
Bond County3,055$2,189.92$4,333.24$2,708,585$5,359,534
Boone County8,460$1,919.39$3,797.93$5,717,620$11,313,552
Brown County914$1,909.38$3,778.13$739,480$1,463,225
Bureau County7,146$1,933.16$3,825.18$5,592,859$11,066,695
Calhoun County1,104$1,747.84$3,458.48$784,396$1,552,098
Carroll County3,648$1,905.29$3,770.03$2,872,107$5,683,087
Cass County2,162$2,042.81$4,042.15$1,752,601$3,467,908
Champaign County26,840$2,537.25$5,020.51$29,227,378$57,832,828
Christian County6,428$1,673.06$3,310.52$4,462,419$8,829,885
Clark County3,073$1,896.03$3,751.71$2,427,708$4,803,752
Clay County2,676$1,667.89$3,300.29$1,851,981$3,664,554
Clinton County6,461$1,959.05$3,876.43$4,868,239$9,632,929
Coles County8,555$1,928.55$3,816.07$7,142,314$14,132,675
Cook County751,934$1,904.39$3,768.27$534,319,250$1,057,272,513
Crawford County3,528$1,677.29$3,318.89$2,455,386$4,858,524
Cumberland County2,110$1,665.16$3,294.90$1,377,838$2,726,368
De Witt County3,002$1,970.80$3,899.68$2,311,071$4,572,984
DeKalb County13,217$2,391.78$4,732.68$12,955,802$25,635,997
Douglas County3,523$2,068.71$4,093.40$2,813,925$5,567,972
DuPage County143,053$2,717.73$5,377.63$142,410,048$281,789,782
Edgar County3,741$1,834.60$3,630.16$2,859,683$5,658,512
Edwards County1,375$1,735.29$3,433.65$1,006,761$1,992,097
Effingham County6,019$1,974.56$3,907.12$4,571,106$9,044,983
Fayette County4,054$1,694.68$3,353.30$2,792,778$5,526,129
Ford County2,437$1,671.56$3,307.55$1,662,690$3,290,000
Franklin County7,886$1,456.39$2,881.79$4,908,159$9,711,879
Fulton County707$1,938.00$3,834.76$570,903$1,129,656
Gallatin County1,125$1,586.25$3,138.75$762,620$1,509,014
Greene County2,542$1,557.49$3,081.83$1,577,346$3,121,120
Grundy County7,199$2,142.21$4,238.85$5,931,450$11,736,724
Hamilton County1,769$1,498.13$2,964.38$1,090,614$2,158,020
Hancock County4,108$1,809.69$3,580.87$3,034,370$6,004,169
Hardin County982$1,640.35$3,245.79$700,358$1,385,811
Henderson County1,668$1,892.88$3,745.48$1,304,679$2,581,595
Henry County9,929$1,838.59$3,638.07$7,273,052$14,391,393
Iroquois County5,857$1,775.85$3,513.91$4,143,886$8,199,590
Jackson County891$2,034.21$4,025.13$820,127$1,622,801
Jasper County186$1,839.44$3,639.74$134,171$265,487
Jefferson County7,198$1,860.78$3,681.96$5,489,301$10,861,782
Jersey County4,246$1,974.00$3,906.00$3,261,325$6,453,259
Jo Daviess County5,967$2,076.08$4,108.00$5,161,654$10,213,515
Johnson County2,670$1,838.41$3,637.70$2,019,981$3,996,979
Kane County72,939$2,398.97$4,746.91$58,915,311$116,577,397
Kankakee County18,567$1,840.52$3,641.88$13,093,078$25,907,581
Kendall County1,329$2,390.04$4,729.24$1,099,088$2,174,796
Knox County10,735$1,702.53$3,368.83$7,844,060$15,521,197
Lake County98,908$2,790.63$5,521.88$95,838,761$189,638,232
LaSalle County20,538$1,879.44$3,718.88$15,501,983$30,674,039
Lawrence County2,728$1,648.62$3,262.16$1,905,693$3,770,836
Lee County6,683$1,936.02$3,830.86$5,196,153$10,281,782
Livingston County6,844$1,969.54$3,897.17$5,370,331$10,626,387
Logan County5,237$2,107.10$4,169.38$4,559,869$9,022,745
Macon County20,802$1,976.68$3,911.30$18,034,604$35,685,466
Macoupin County8,940$1,915.72$3,790.68$5,926,137$11,726,187
Madison County45,230$1,992.71$3,943.01$36,787,867$72,792,793
Marion County7,329$1,729.98$3,423.14$5,305,031$10,497,152
Marshall County2,688$2,058.18$4,072.56$2,230,802$4,414,130
Mason County2,966$1,641.10$3,247.28$1,962,703$3,883,642
Massac County2,892$1,394.11$2,758.57$1,645,619$3,256,239
McDonough County5,224$1,866.46$3,693.22$3,947,525$7,811,086
McHenry County44,935$2,478.64$4,904.54$44,910,358$88,865,123
McLean County22,640$2,353.57$4,657.07$22,483,048$44,487,791
Menard County2,366$2,357.94$4,665.72$2,213,844$4,380,593
Mercer County3,350$1,932.73$3,824.35$2,559,148$5,063,863
Monroe County6,165$2,098.46$4,152.26$4,881,889$9,659,880
Montgomery County5,740$1,705.02$3,373.76$4,010,990$7,936,632
Morgan County6,732$1,913.18$3,785.66$5,434,400$10,753,191
Moultrie County2,741$2,125.58$4,205.93$2,275,865$4,503,302
Ogle County9,470$2,000.18$3,957.80$7,229,658$14,305,483
Peoria County30,640$2,070.07$4,096.09$26,101,623$51,647,818
Perry County3,890$1,636.21$3,237.61$2,619,283$5,182,841
Piatt County3,171$2,160.07$4,274.19$2,739,833$5,421,383
Pike County3,268$1,604.72$3,175.30$2,167,035$4,287,967
Pope County1,170$1,762.50$3,487.50$885,032$1,751,234
Pulaski County1,195$1,292.50$2,557.50$633,007$1,252,546
Putnam County1,297$2,201.15$4,355.47$1,132,893$2,241,684
Randolph County5,911$1,824.45$3,610.07$4,383,872$8,674,441
Richland County3,180$1,685.04$3,334.24$2,232,678$4,417,868
Rock Island County27,383$1,960.14$3,878.57$22,552,317$44,624,740
Saline County4,769$1,556.50$3,079.88$2,866,003$5,671,022
Sangamon County34,846$2,381.30$4,711.94$35,766,715$70,772,526
Schuyler County1,543$1,889.78$3,739.34$1,235,564$2,444,831
Scott County985$1,759.40$3,481.36$728,155$1,440,815
Shelby County4,868$1,692.94$3,349.86$3,336,531$6,602,072
St. Clair County41,030$1,943.59$3,845.83$31,898,199$63,117,762
Stark County1,191$2,022.13$4,001.23$979,007$1,937,181
Stephenson County10,101$1,893.25$3,746.23$7,869,843$15,572,292
Tazewell County24,779$2,264.18$4,480.18$22,531,774$44,584,088
Union County3,564$1,776.55$3,515.31$2,660,346$5,264,103
Vermilion County14,621$1,928.03$3,815.05$11,648,647$23,049,523
Wabash County238$1,782.10$3,526.28$172,415$341,160
Warren County3,285$1,828.68$3,618.44$2,461,973$4,871,547
Washington County2,791$1,792.77$3,547.39$1,962,204$3,882,653
Wayne County3,486$1,685.66$3,335.45$2,479,414$4,906,067
White County2,924$1,666.57$3,297.69$2,127,970$4,210,675
Whiteside County11,532$1,925.17$3,809.37$8,845,044$17,501,855
Will County90,487$2,394.13$4,737.33$73,686,273$145,805,027
Williamson County12,653$1,601.10$3,168.14$8,620,731$17,058,075
Winnebago County49,450$1,883.43$3,726.79$36,812,495$72,841,805
Woodford County6,961$2,517.70$4,981.82$6,515,134$12,891,617
TOTAL1,949,852

$1,551,646,582$3,070,281,611
Sources: U.S. Census, Illinois Department of Revenue

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