State Senate President Brings Back Cigarette Tax Proposal

By Chuck Sudo in News on Mar 15, 2011 6:30PM

Illinois State Senate President John Cullerton is proposing a $1 increase in the cigarette tax as a means of financing the state's troubled capital improvement program. The $31 billion program has been deemed unconstitutional by an appellate court because it relies too heavily on other sin taxes. An appeal of that ruling is to be heard before the Illinois Supreme Court.

This isn't he first time Springfield has floated a cigarette tax increase. The $1 per pack increase in the cigarette tax was one of many proposed tax increases scrapped in order to approve the increase in the state income tax hike in January.

When news of Cullerton's plan was made public, Progress Illinois was quick to remind people that there are benefits to an increase in the cigarette tax. Although we've been trained as a society to fly into an irrational raise whenever we hear the term "tax increase," a 2010 study by the Campaign for Tobacco-Free Kids (view it here in PDF form) shows Illinois' current rate of 98 cents-per-pack ranks the state 32nd nationally among states taxing cigarettes. raising the tax an extra buck would put Illinois slightly above the national average, but still far below New York state's $4.35 a pack. That'll make you quit.

Springfield legislators need to cobble together a funding proposal for the construction project soon, or else they're going to miss the construction season. Even with Cullerton's backing, the cigarette tax proposal isn't a lock to pass.