Pennsylvania

TexasTowelie

(116,744 posts) Sun Aug 4, 2019, 05:48 PM Aug 2019

Should Pennsylvania tax pensions? Reactions range from 'attack on retirees' to 'reasonable concept'

Many retirees don’t want to bet their retirement on a new tax proposal.

Republican state Rep. Frank Ryan has proposed eliminating school property taxes by creating a new tax on retirement income.

While some seniors struggle to pay their annual school taxes, some said this isn’t the right solution.

“Does he not realize it is the seniors who most want the tax to go away in the first place?” asked reader Dennis Meagher of Windsor Township, Berks County.

One of Ryan’s ideas for raising revenue is a 4.92% tax on retirement income, which currently is not taxed in Pennsylvania. Social Security income would be exempt.

Read more: https://www.mcall.com/opinion/mc-opi-pennsylvania-pension-retirement-tax-school-20190803-rcebsifinbdp5cl6llyzkouuhe-story.html
(Allentown Morning Call)

6 replies

= new reply since forum marked as read

Highlight:

Should Pennsylvania tax pensions? Reactions range from 'attack on retirees' to 'reasonable concept' (Original Post) TexasTowelie Aug 2019 OP

A way for the Repubs to take the load off big business & wealthy property owners... JoeOtterbein Aug 2019 #1

I would not object to a tax on retirement income IF IT IS PROGRESSIVE. As all taxes should be. Midnight Writer Aug 2019 #2

Kick and recommend for visibility. bronxiteforever Aug 2019 #3

I know very few wealthy retirees abqtommy Aug 2019 #4

maybe they should just tax pension distributions above some specific large amount cojoel Aug 2019 #5

Retirement income is not taxed, but DeminPennswoods Aug 2019 #6

JoeOtterbein

(7,788 posts)

1. A way for the Repubs to take the load off big business & wealthy property owners...

Reply to TexasTowelie (Original post)

Sun Aug 4, 2019, 05:55 PM

Aug 2019

...and dump it on us PA seniors!

Midnight Writer

(22,970 posts)

2. I would not object to a tax on retirement income IF IT IS PROGRESSIVE. As all taxes should be.

Reply to TexasTowelie (Original post)

Sun Aug 4, 2019, 05:59 PM

Aug 2019

bronxiteforever

(9,402 posts)

3. Kick and recommend for visibility.

Reply to TexasTowelie (Original post)

Sun Aug 4, 2019, 06:22 PM

Aug 2019

abqtommy

(14,118 posts)

4. I know very few wealthy retirees

Reply to TexasTowelie (Original post)

Sun Aug 4, 2019, 06:38 PM

Aug 2019

so it makes more sense to me to TAX THE RICH!

cojoel

(997 posts)

5. maybe they should just tax pension distributions above some specific large amount

Reply to TexasTowelie (Original post)

Sun Aug 4, 2019, 09:40 PM

Aug 2019

Maybe distributions above say, $100K are taxed. Most ordinary seniors wouldn't be affected.

DeminPennswoods

(16,303 posts)

6. Retirement income is not taxed, but

Reply to TexasTowelie (Original post)

Fri Aug 9, 2019, 03:08 PM

Aug 2019

except for PA muni bonds and US treasury bonds, ll investment income, dividends, capital gains, etc are taxed at the going 3.01% flat tax rate. There are no deductions allowed. I don't think taxing retirement income at a higher rate than the flat tax is fair. I don't think it would be constitutional either given our state constitution says taxes can't have different rules for different people - it's why we have a flat tax in the first place.

I'm not necessarily opposed to taxing at least some portion of retirement income, but our entire tax system needs to be overhauled to become fairer and more progressive.

Reply to this discussion