SPRINGFIELD — Illinois smokers could soon have to cough up an extra dollar for a pack of cigarettes after the Illinois House today approved a cigarette tax hike of $1 per pack, pushing it from 98 cents to $1.98.
By Andrew Thomason
SPRINGFIELD — Illinois smokers could soon have to cough up an extra dollar for a pack of cigarettes after the Illinois House today approved a cigarette tax hike of $1 per pack, pushing it from 98 cents to $1.98.
The measure passed as supporters watched the number of yes votes hit 60, the minimum number needed for approval. Fifty-two representatives voted against the measure, which goes to the Illinois Senate, where similar legislation has been approved in past years, only to die in the House.
The impetus for the yes votes in the House this time was the skyrocketing cost of Medicaid in the state. Revenues from the sin tax will go toward paying for Medicaid, and were part of a larger Medicaid reform package, which includes $1.6 billion in cuts from the health care system.
The backlog of overdue Medicaid bills was set to hit $21 billion by 2017.
State Rep. Barbara Flynn-Currie, D-Chicago, carried the legislation in the House. She said the tax hike is expected to bring in $350 million annually. The state will effectively double its money; the federal government will match the state’s $350 million, resulting in $700 million for Medicaid.
Bill Fleischli is executive director of the Illinois Petroleum Marketers Association/Illinois Association of Convenience Stores, which lobbies for gas stations and convenience stores in Springfield. He cautioned that increasing the cost of cigarettes will drive smokers, and dollars, from Illinois.
“Our customers who purchase cigarettes will go to border communities, the Internet, or through illegal vendors. And when they cross the borders they will buy other ancillary items, costing us money and the state of Illinois money,” Fleischli said.
State Rep. Jim Sacia is a Republican from Rockford. His legislative district borders Wisconsin, but he voted in favor of the tax hike.
“For even those of us that represent long expanses of border areas … we have an obligation to stand and vote yes on this very necessary piece of legislation,” Sacia said.
Hero
It looks like, once again, the cigarette smokers will be expected to save the state of Illinois. I'm not a smoker but I am aware that the cigarette smokers of Illinois have been expected to step and be the hero.
The governor, senate, and house say that this tax hike will bring in $ 350 million. These expectations have always fallen 20 – 50 percent short. People will find a way to avoid the tax by buying out of state. Wisconsin, Missouri, and Indiana are going to be thanking us again.
Is this just another way to take the taxpayer's minds off of pension reform and another way to delay action for another year. This comes on a day that the Chicago Tribune announces another pension scheme by the legislature.
Take the taxpayer’s minds off of pension reform?
"Is this just another way to take the taxpayer's minds off of pension reform and another way to delay action for another year."
What's this have to do with pension reform? The article was pretty clear:
"The impetus for the yes votes in the House this time was the skyrocketing cost of Medicaid in the state. Revenues from the sin tax will go toward paying for Medicaid, and were part of a larger Medicaid reform package, which includes $1.6 billion in cuts from the health care system."
Pension reform – which is a good idea – will not sove the problem of Medicaid funding.
And what is wrong with smokers funding Medicaid? It seems like a good idea to me…..my guess is that smokers are more likely to be uninsured or using Medicaid, so they should put in a little more to fund hospitals and medical services.
And it is interesting that the petroleum retailers lobbied against this bill. It is understandable, of course, since they make money selling cigarettes…..but what happened to Illinois' gas tax? The crook George Ryan got rid of it ….that would be a nice way to help balance the budget.
Not True
State Gas Tax is about 48 cents per gallon, not counting the sales tax. Nobody got rid of the Illinois tax on gasoline. Is it possible you were talking about rolaids or tums?
The average total tax in cook county on gasoline is just above $ 1 per gallon.
You more likely to be a medicaid user if you are a drinker. How about raising the tax on beer by .25 per can, wine by .05 an ounce, and hard liquir by .10 per ounce.
Illinois is one of the most liberal states when it comes to medicaid. Over the last 8 yars they have made it easier to qualify for medicaid and added more things that are covered under medicaid. Of coarse, most of the people using medicaid are Democrat voters. Quinn, Blago, Emil Jones, and the Madigan twins, John and Lisa do not want to offend their strongest supporters.
It looks like the Springfield Pols are going to bail on much of the pension reform by transferring much of the responsibility to local government. This way they can say that they didn't raise taxes but they will force local governments to increase property taxes.
Tax on cigs
I will stop smoking. Cigs are just too expensive.