Jump to full article: Bloomington (IL) Pantagraph, 2009-10-12
Author: The Pantagraph Editorial Board
Intro: Of the two proposals on the table for funding grants for Illinois college students, the Republicans plan for another round of tax amnesty makes more sense than nearly doubling the state's tax on cigarettes. . . .
Democrats are touting a dollar-a-pack tax on cigarettes as the savior for MAP. However, such an increase would give Illinois a higher state tobacco tax than any of its surrounding states except Wisconsin, where the tax is $2.52 a pack compared to the proposed $1.98 tax for Illinois.
When county and city taxes are included, the extra dollar would push Chicago ahead of New York City as the city with the highest combined taxes on a pack of cigarettes.
It's plain to see how that would send people near the borders to stores in other states, not only to buy cigarettes but to fill their fuel tanks and buy snacks and other items while they are there. That would potentially decrease revenue, not only from the tobacco tax but also from sales taxes and motor fuel taxes.
In addition, the extra dollar a pack would likely inspire more people to quit smoking - good for individuals' health and overall health care costs, bad for revenue generation - and could cause more people to buy cigarettes over the Internet, smuggle them across the border or even steal them.
Add to this the question of whether a small group of taxpayers - those who still smoke - should be burdened with financing a significant portion of a program that is a general state benefit.
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