Illinois residents already live with some of the nation’s biggest tax burdens, but that doesn’t stop Democrats from proposing legislation that would tax retirement income. But this is not the first attempt to enforce a progressive income tax. Six years ago, Democrats put a constitutional amendment to a statewide vote and were rejected- and today voters feel the same way about a progressive income tax.
On the other hand, a flat income tax system is what voters prefer and for good reasons. Illinois residents support a transparent tax structure that is fair and creates economic growth by eliminating higher tax rates on higher income earners.
HJRCA0021 was filed in October of 2025 and is currently sitting in Rules Committee. This legislation aims to amend the Illinois Constitution to impose more taxes, including a tax on retirement income. House Minority Leader Tony McCombie, filed HR0112 to have on record that House Republicans reject taxing retirement income in our state. State Representative Kevin Schmidt said taxing retirement income in Illinois is a horrible idea and would lead to even more outmigration and does the opposite of making Illinois more affordable.
“I reject the idea of a progressive income tax in Illinois because we need to support legislation that keeps retirees in our state who contribute to our economy,” said Schmidt. “We need to focus on working together to make Illinois more affordable so everyone is better off, or we will continue to see families exit Illinois to more friendly states with lower taxes.”
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