* My Crain’s Chicago Business column… [fixed link]

Big Jim Thompson and I disagree.

The former 14-year Illinois governor says he has no regrets about pushing legislation in the 1980s that exempted retirement income from state taxation.

I think it’s crazy. Illinois is facing a $4 billion hole in its 2015 budget when the 2011 income tax increase automatically starts to roll back on Jan. 1. That’s a huge headache for whoever wins the Nov. 4 election, Gov. Pat Quinn or Republican nominee Bruce Rauner.

Illinois is leaving $2 billion on the table by not taxing retirement income, studies have shown. That missed revenue is escalating every year. Total retirement income in Illinois is growing by 6.5 percent a year, compared with just 1.9 percent annual growth for personal income that is taxed, according to a study by the Civic Federation.

Illinois is one of just three states that exempt pension income from taxation, according to the Chicago Metropolitan Agency for Planning.

Shouldn’t we get in line with all those other states? Mr. Thompson says no.

Click here to read the rest before discussing, please [fixed link]. Included in the story are exclusive results from a new poll of Illinois senior citizens on this issue.