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

[TexasTowelie]

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)

[JoeOtterbein]

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

...and dump it on us PA seniors!

[Midnight Writer]

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

[bronxiteforever]

3. Kick and recommend for visibility.

[abqtommy]

4. I know very few wealthy retirees

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

[cojoel]

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

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

[DeminPennswoods]

6. Retirement income is not taxed, but

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.