Weekend Watch: Taxing retirement income

CHICAGO (WLS) -- Our Weekend Watch shines a spotlight on government activity.

Illinois may be one of the best places to retire because of its tax policies for older citizens, but this could mean negative consequences for the younger generations.

According to the BGA, of 41 states that have an income tax, only three - Illinois, Pennsylvania and Mississippi - do not tax retirement income. Many states exempt some retirement income, such as pension or Social Security benefits, the BGA reported.

Marie Dillon with the Better Government Association stopped by ABC7 to talk more about the issue.

For more articles from the Better Government Association, visit http://bettergov.org/.
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