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Old 05-26-2018, 05:33 PM
 
19 posts, read 44,697 times
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Re;Pensions.
The state of California has a law that will tax California pensions regardless of your residency. The logic is that the pension was PAID in California and sent to the person receiving it so it is taxable by the state. This holds true for any State Government employee.
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Old 05-26-2018, 05:55 PM
 
Location: MMU->ABE->ATL->ASH
9,233 posts, read 18,615,924 times
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Quote:
Originally Posted by jmurr View Post
Re;Pensions.
The state of California has a law that will tax California pensions regardless of your residency. The logic is that the pension was PAID in California and sent to the person receiving it so it is taxable by the state. This holds true for any State Government employee.
Starting in 1996 is a violation of Federal Law For California (or any state to do that).

https://finance.zacks.com/california...rnia-8191.html


On Jan. 10, 1996, P.L. 104-95 took effect. This federal law prohibits any state from taxing pension income of non-residents, even if the pension was earned within the state. Before the passage of this law, California, New York and several other states maintained a source tax on pension earned within the state. For example, a California teacher who retired to Nevada would have to continue paying the source tax on her California pension. Thanks to this law, people who earn a pension in California then move out of the state no longer have to pay taxes on these funds to California.
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Old 05-27-2018, 03:30 PM
 
893 posts, read 499,182 times
Reputation: 1456
Quote:
Originally Posted by flyonpa View Post
Starting in 1996 is a violation of Federal Law For California (or any state to do that).

https://finance.zacks.com/california...rnia-8191.html


On Jan. 10, 1996, P.L. 104-95 took effect. This federal law prohibits any state from taxing pension income of non-residents, even if the pension was earned within the state. Before the passage of this law, California, New York and several other states maintained a source tax on pension earned within the state. For example, a California teacher who retired to Nevada would have to continue paying the source tax on her California pension. Thanks to this law, people who earn a pension in California then move out of the state no longer have to pay taxes on these funds to California.
This is very interesting. But I think states can get around this by simply changing the language from "tax" to an "administrative fee" applied to all pensioners. With wording you can get around anything. We definitely need to be taxing public pensions then funneling 100% of proceeds into future pension benefits creating a compounding reduction effect.
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Old 05-28-2018, 06:49 PM
 
347 posts, read 412,972 times
Reputation: 600
I left Illinois for the mountain west and never looked back. I'll never regret leaving that disaster of a state. The democrats have destroyed that state.
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Old 05-31-2018, 09:57 AM
 
997 posts, read 585,010 times
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Quote:
Originally Posted by My Kind Of Town View Post
Bitterness on both sides of this. If you don’t like what Illinois and the Chicago metro have to offer then what more can a current resident do but wish you the best while leaving? It is annoying that many on here post just to trash the state and it’s current fiscal issues. What’s the point? It doesn’t make someone “dumb” for staying (everyone’s situation is different) or give someone grounds for wishing ill will upon others (like a few too many have done in this thread).
I wish they would leave, physically and tbe CD Illinois forum. Good luck where ever you go, I really couldn’t care less. Please post in in the forum related to your new surroundings, I’m sure you’ll find something wrong.
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Old 06-06-2018, 09:23 AM
 
2,204 posts, read 1,108,166 times
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If you're a child in this system, disaster has already struck:
https://www.theatlantic.com/family/a...linois/561572/
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Old 06-06-2018, 08:56 PM
 
49 posts, read 36,525 times
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Quote:
Originally Posted by Sunbiz1 View Post
If you're a child in this system, disaster has already struck:
https://www.theatlantic.com/family/a...linois/561572/
Just Imagine how many more will suffer when the next recession hits and Illinois runs out of money.
The choices the state government will have to make will be like:
Pensions or State Police
Pensions or Infrastructure
Bond holders or Social Services
Bond holders or education services
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Old 06-07-2018, 09:33 AM
 
893 posts, read 499,182 times
Reputation: 1456
Quote:
Originally Posted by DoseTheClowns5 View Post
Just Imagine how many more will suffer when the next recession hits and Illinois runs out of money.
The choices the state government will have to make will be like:
Pensions or State Police
Pensions or Infrastructure
Bond holders or Social Services
Bond holders or education services
Exactly. Been saying this for a while. It's gonna get really bad when pensioners have 35% of their money to retire on. They'll fight/strike for more and schools, police, fire, etc will shut down and there could be massive job loss. But in the end I think the pensioners will just get screwed. Impossible to create money outta thin air and we're taxed to death already.

The good news is that other states like Kentucky and Michigan will run outta cash for their pensions before Illinois so hopefully we can figure out a solution before then.
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Old 06-08-2018, 09:46 AM
 
Location: All Over
4,004 posts, read 5,136,444 times
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Quote:
Originally Posted by nealtaylor View Post
The ironic thing about this is that we have a population looking to screw over people that worked for their money in the form of a pension, but God help us if we mention not giving entitlement money to those that do not work or provide any benefits to society.
While I agree with you on that point, I will say I think everyone realizes things people were doing along the way were not sustainable. I get its kind of unfair to hold for example the average school teacher accountable but when I think back to the 2008 Financial Crisis when most people were struggling, people were getting laid off, doing more work for less money and the Chicago Teachers Union got a 2% raise and bitched and moaned and marched through the streets about how unfair they are treated when they get great healthcare, great pension, work 9 months out of the year, etc and were completely ungrateful when tehy were doing better than most. Unions often get so greedy they would rather destroy the job or industry for everyone than make a little sacrafice on their part. Look at what happenned with Hostess and Twinkies. For that reason its hard to feel bad for cutting people's pensions who are getting way more than they really should be getting in the first place, but yes I do get it was promised to them
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Old 06-08-2018, 11:52 AM
 
2,204 posts, read 1,108,166 times
Reputation: 2944
Quote:
Originally Posted by DoseTheClowns5 View Post
Just Imagine how many more will suffer when the next recession hits and Illinois runs out of money.
The choices the state government will have to make will be like:
Pensions or State Police
Pensions or Infrastructure
Bond holders or Social Services
Bond holders or education services

I was amazed to learn Cermak hospital located within Cook county jail is now the largest provider of mental health services not just in the state; but in the entire country.
A huge tax burden for Cook county residents.
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