* I told you yesterday that Senate President Cullerton wanted to replace the video gaming component of the capital bill with a cigarette tax. I told subscribers today why I believed he was doing it. Cullerton unveiled his proposal today…
In a surprise move, Senate President John Cullerton Wednesday took steps to gut the controversial 2009 state law that authorized video gambling machines in bars and restaurants throughout the state.
The measure, if passed by both chambers of the Legislature and enacted by Gov. Quinn, would represent a 180-degree shift from when video gambling was regarded as a $534 million cash cow to support the governor’s $31 billion capital program. […]
“It’s obviously a very controversial plan. It has yet to generate a single dollar for the capital program. Right now, the Senate president is gauging whether there is sufficient support to repeal it,” Cullerton spokeswoman Rikeesha Phelon said.
On Wednesday, Cullerton attached the repeal language to a bill he is sponsoring, but the package has not had a hearing. […]
…the Illinois Gaming Board has added about 50 investigators in preparation for the roll-out of such gaming and begun background checks on 116 license applicants after estimating the first video gambling machines would be functioning by late summer or early fall, spokesman Gene O’Shea told the Sun-Times.
Could you be for this swap?
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- Rudykzooti - Wednesday, Mar 16, 11 @ 2:52 pm:
I am all for it because I don’t smoke…I doubt it will really stop anyone else from totally stopping either and if they cut down maybe it will help their overall health just a tiny bit…
- OneMan - Wednesday, Mar 16, 11 @ 2:54 pm:
So what about the money that has been wasted on background checks and the money people spent getting ready for video gaming.
At the least I would suspect the state would have to return the licensing fees. Also would the cig tax replace the local revenue part of video gaming.
Finally I don’t see the coin-op guys taking this without a fight.
- Anonymous - Wednesday, Mar 16, 11 @ 2:56 pm:
The licensing fee is non-refundable. Everyone who’s applied for a license knows that upfront.
- OneMan - Wednesday, Mar 16, 11 @ 3:04 pm:
Non refundable even if no licenses are issued? I can see non-refundable if denied.
- downstate hack - Wednesday, Mar 16, 11 @ 3:16 pm:
This is asinine. If they had moved froward with the video gaming in a timely manner, the State would already have hundreds of millions in the bank. Keep the video poker add slots to the racetracks and add a casino in Chicago. These taxes are self selected by the players, can garnish tourism dollars and can give a decent return to the State. A cigarette increase of these proportions will drive many more smokers to the internet with a resulting loss of revenue to the State,
- Rollin' - Wednesday, Mar 16, 11 @ 3:23 pm:
Absolutely. Cigarette taxes can increase revenue immediately and save us money in the long run by cutting costs on state funded health care. My question is why not keep the gambling licenses and hope some of that money comes through eventually? It sounds like we’ve already paid most of the costs.
- Matt - Wednesday, Mar 16, 11 @ 3:46 pm:
Joe Berrios better get down there fast and start fighting this.
- amalia - Wednesday, Mar 16, 11 @ 4:10 pm:
reminds me of a recent NYTimes story about a woman who grows her own tobacco and rolls her own.
- tberry - Wednesday, Mar 16, 11 @ 4:15 pm:
What I would be for is having the idiots in Springfield thinking about something before they did it! They are just flailing around blindly trying desperately to increase revenue. If they spent half as much time on reducing spending that they do on more taxing, borrowing, and spending our state wouldn’t be on the verge of bankruptcy.
- JBilla - Wednesday, Mar 16, 11 @ 4:24 pm:
I already pick up smokes whenever I leave the state. All this focus on cigs just reminds people to smoke. It’s like the anti-smoking ads on TV, why do you think cig companies pay for them: “Don’t smoke Jimmy, you’re not 18 yet, smoking is too cool for you!”
Also, what is the deal with the annual ‘cig tax goes up a dollar’ idea train. Seriously, we have nothing else? No annual CTA pass? No automated bike storage? Our creativity in governing needs to be a little more user friendly. Why not get pre-tax transit benefits for car sharing? How about speed up permitting for solar installations? Create a state bank for crying out loud. Save some moola!
- OurMagician - Wednesday, Mar 16, 11 @ 4:27 pm:
So, lose a revenue source by replacing it with another revenue source? I also will wait to see the study that show the direct link between gambling and death like smoking has.
- Jack Straw from Wichita - Wednesday, Mar 16, 11 @ 4:30 pm:
Cig taxes will bring in the quickest dollars to pay for the projects. I do think if you are willing to tax those that choose to pay it by smoking, then there should be no problem with building a casino where people will choose to gamble. Slippery slope, perhaps.
- dupage dan - Wednesday, Mar 16, 11 @ 4:39 pm:
Either way the $ is coming from fools. Fools to smoke and fools to gamble. Since I don’t do either of those things I could not care less. Not that I don’t have my vices, I do.
There looks to be a tax either way. I vote for the one that easiest and gets most of the bang for the buck. Tax ‘em both!
- Bigtwich - Wednesday, Mar 16, 11 @ 4:40 pm:
I’m with downstate hack. Add this and slots at the tracks to the mix. Probably try to pass the video gambling, again, as a separate bill. BTW, Gov Snyder, Michigan, is proposing to tax retirees’ pensions. Is he on Cullerton’s mailing list?
- Objective Dem - Wednesday, Mar 16, 11 @ 5:42 pm:
I’m in favor. I think expanding gambling comes with way too many risks. Video poker is the gateway to more gambling and more problems.
Flip side is increasing taxes on cigs discourages use which is good for keeping health care costs down. Plus it keeps the smokers from taking smoke breaks all the time instead of working.
- Chicago Bars - Wednesday, Mar 16, 11 @ 5:47 pm:
A lot of bar owners who should’ve known better, especially downstate, sucked up the hefty beer and liquor taxes that went with the video gambling bill because they assumed their cut of video gambling would offset those higher inventory costs.
It’s been two years of higher inventory costs due to those taxes and zero income from video poker. That 2009 bill passed in a hurry, I would gamble there will be plenty of time now for tavern owners from Cairo to Rockford to scream to their reps.
I will also now bet the house that Wirtz wins his lawsuit against that 2009 liquor tax hike is a foregone conclusion with these mitigation bills being pushed.
- Tom Joad - Wednesday, Mar 16, 11 @ 6:29 pm:
The cig tax won’t raise the money the video poker would have raised. So the capital bill will have to be cut. Start with the member projects, specifically the grants to churches and the West Side branch of Governor’s State.
The refusal of Chicago and many other cities to agree to allow video poker makes this idea unworkable. They will all have their hands out for part of the take from the poker proceeds even though they turn their nose up at it. The other cities who go along have the right to complain.
This was Tom Cross’es idea. No wonder he has been quiet about any other fundraising proposals!
- Park - Wednesday, Mar 16, 11 @ 6:50 pm:
both taxes are regressive, but I stopped smoking couple years back, so whatever. Probably won’t ruin innocent lives the way gambling does.
But I’m still hoping the Court throws the whole bill back at the GA. Now THAT would be fun to watch.
- walter sobchak - Wednesday, Mar 16, 11 @ 8:39 pm:
Now if he would just stop the Department of Revenue’s smelly handoff to their current clueless lottery vendors and require a competitive bid process the state might actually increase lottery profits.
- Anonymous - Wednesday, Mar 16, 11 @ 9:19 pm:
Video poker was snuck through. Now, lets see if it can die on its own (by vote.) The Trib says Cullerton will only push this if the cig tax flies. It’ll be interesting to see how the Repubs will vote on this.
- x ace - Wednesday, Mar 16, 11 @ 10:26 pm:
Repeal it - then, if going to revisit Video poker - Legalize it only in Veterans and long established fraternal clubs. No bars or truck stops or private businesses .
- chicago jim - Thursday, Mar 17, 11 @ 4:27 pm:
Talk about something being snuck through. How did Illinois wind up with Power Ball Lottery? This costs our poorer taxpayers hundreds of thousands more than video poker ever could. Yet it got by us about 2 years ago without any public discussion.
Where were the anti gaming lobbies then ?