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AARP poll: Taxing retirement income is a third rail

Thursday, Dec 17, 2015 - Posted by Rich Miller

* AARP IL commissioned a Precision Research poll of Illinoisans 50 and over. Click here to read it all. They’re not happy campers…

1. As you think about your finances, how anxious do you feel about having enough money to live comfortably through your retirement years? Are you… [READ EACH ANSWER CATEGORY]?

    N= 1000
    Very anxious 23.5%
    Somewhat anxious 33.8%
    Not very anxious 17.4%
    Not anxious at all 22.3%
    Not sure/ Don’t know [DO NOT READ] 2.0%
    Refused [DO NOT READ] 1.0%

2. Now, thinking about the state and local taxes you pay, not including federal taxes, how strongly do you agree or disagree that you get the services you need in return for the taxes you pay? Would you… [READ EACH ANSWER CATEGORY]?

    N= 1000
    Strongly agree 8.4%
    Somewhat agree 30.6%
    Somewhat disagree 21.7%
    Strongly disagree 35.0%
    Not sure (DO NOT READ) 3.8%
    Refused [DO NOT READ] 0.5%

3. How aware are you that the Illinois state government is now five months past its deadline to have a budget in place? Would you say you are… [READ EACH ANSWER CATEGORY]?

    N= 1000
    Very Aware 80.9%
    Somewhat aware 12.3%
    Not too aware 2.8%
    Not at all aware 3.4%
    Not sure (DO NOT READ) 0.4%
    Refused [DO NOT READ] 0.1%

4. I’m going to read you a list of issues. After I read each one, please tell me if you would describe that issue as a major problem, a minor problem, or not a problem at all in the State of Illinois. Do you think (INSERT ITEM) is a major problem, a minor problem, or not a problem at all? (RANDOMIZE ITEMS A-C)

a. Cuts in state funding for essential services that allow seniors to stay in their homes and communities as they age

    N= 1000
    Major problem 69.2%
    Minor problem 19.7%
    Not a problem at all 5.8%
    Not sure (DO NOT READ) 5.0%
    Refused (DO NOT READ) 0.2%

b. Lack of cooperation among Illinois elected officials

    N= 1000
    Major problem 87.2%
    Minor problem 7.4%
    Not a problem at all 2.6%
    Not sure (DO NOT READ) 2.8%
    Refused (DO NOT READ) 0.1%

c. The amount of state and local taxes residents have to pay

    N= 1000
    Major problem 66.3%
    Minor problem 24.2%
    Not a problem at all 7.3%
    Not sure (DO NOT READ) 2.0%
    Refused (DO NOT READ) 0.3%

They are worried about state cuts, but they also don’t want higher state taxes.

* And they really, really, REALLY don’t want legislators to tax their retirement income

Thinking ahead to your retirement, if your retirement income were to be taxed, how much of an impact would that have on your ability to prepare for a secure retirement? Would you say it would be a [READ EACH ANSWER CATEGORY]

    N= 457
    Major impact 71.6%
    Minor impact 21.2%
    No impact 4.4%
    Not sure (DO NOT READ) 2.7%
    Refused (DO NOT READ) -

16. If lawmakers decide to tax retirement income, would you consider [READ EACH ANSWER CATEGORY] (RANDOMIZE ITEMS A-F)

    N= 902
    A. Moving to another state where there are tax friendly laws for retirees 59.6%
    B. Moving to another location in Illinois 21.1%
    C. Returning to the workforce 33.0%
    D. Reducing your household spending 69.2%
    E. Reducing spending on services such as hair salons, or lawn services 53.2%
    F. Something else (specify) _____________________________ 12.6%

Would you be more or less likely to vote for a candidate who supports the following? Would you be…[READ EACH ANSWER CATEGORY]? (RANDOMIZE ITEMS A-E)

a. Taxing retirement income

    N= 1000
    More likely 6.5%
    Less likely 84.3%
    Would not make a difference 6.8%
    Not sure (DO NOT READ) 2.3%
    Refused (DO NOT READ) 0.2%

b. Increasing individual income taxes

    N= 1000
    More likely 10.5%
    Less likely 74.2%
    Would not make a difference 11.9%
    Not sure (DO NOT READ) 2.9%
    Refused (DO NOT READ) 0.5%

c. Taxing services that are not currently taxed such as salons or lawn service

    N= 1000
    More likely 17.9%
    Less likely 52.7%
    Would not make a difference 24.9%
    Not sure (DO NOT READ) 4.3%
    Refused (DO NOT READ) 0.2%

d. Increasing corporate taxes

    N= 1000
    More likely 41.0%
    Less likely 36.7%
    Would not make a difference 16.3%
    Not sure (DO NOT READ) 5.6%
    Refused (DO NOT READ) 0.3%

e. Increasing property taxes

    N= 1000
    More likely 5.8%
    Less likely 83.6%
    Would not make a difference 8.3%
    Not sure (DO NOT READ) 2.1%
    Refused (DO NOT READ) 0.2%

Emphasis added for obvious reasons.

You get anywhere near 80 percent and the issue is guaranteed to move votes.

And now you know why one of newly appointed Democratic state Rep. Andrew Skoog’s first acts after being sworn in was signing on as a co-sponsor of Rep. Dave McSweeney’s anti retirement tax resolution.

…Adding… Right on cue comes the press release from a Tier 1 Senate target…

State Senator Tom Cullerton (D-Villa Park) filed Senate Resolution 1325 today to stand up against taxing the retirement income of Illinois’ retirees.

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