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* My weekly syndicated newspaper column…
Despite a long Illinois tradition of supporting them, it’s not exactly news that Republican members of the General Assembly no longer like voting for taxes of any kind. And that attitude created a couple of somewhat absurd positions last week.
Let’s start with the “roll your own” bill. Legislation has been proposed to tax a growing practice of allowing people to use commercial machines to roll their own cigarettes in convenience stores and gas stations.
The stores sell their customers loose, bulk tobacco and then the customers dump the product into special rolling machines, which cost several thousand dollars each. The result is a per carton sale price that is about half the price of a pre-rolled carton of brand-name cigarettes, mainly because the taxes on loose tobacco are much lower than on commercial cigarettes.
Several states are confronting the issue after the machines started appearing in stores throughout the country. Legislatures in Indiana and Virginia are considering bills to up the tax on loose tobacco used in the machines, for instance. Wisconsin’s Department of Revenue told the stores in October to start paying taxes on the tobacco as if they were selling actual cigarettes.
Critics say these stores with the machines are little more than cigarette factories set up to avoid high cigarette taxes. Defenders say they’re not doing anything different than coffee shops that allow customers to pick specific blends, grinds and brands.
Tobacco giant Philip Morris is just one of the companies backing the Illinois bill. The company is worried that the roll your own machines will eventually eat into its profits. The tobacco company’s lobbying team is also warning that if the bill doesn’t pass, Philip Morris and other tobacco companies likely will jump into the machine-rolling business themselves, which could potentially cost the state hundreds of millions of tax dollars a year.
But the Republicans on the Senate Executive Committee balked at backing the measure, and it was “shelled out” last week by an amendment and moved to the Senate floor as basically an empty bill. The bill’s sponsor, Sen. Terry Link (D-Waukegan), said last week that he doubted he could come to an agreement with the opponents and likely would propose similar language in the next few weeks.
Republicans admitted privately that they backed away from voting for anything that might look like a tax increase. They also say they’ll probably support the bill after the primary ends because of the negative revenue consequences for the state.
Then there’s state Sen. Toi Hutchinson’s (D-Olympia Fields) proposal to charge a $5 per head entrance fee tax on strip clubs that sell alcohol. The money generated would be sent to the state’s Sexual Assault Prevention Fund. The proposal sailed out of the Senate Public Health Committee last week on a unanimous vote, but there was a catch. Actually, there were two catches.
The bill has generated a bit of controversy, but it apparently presented a unique dilemma for a couple of Republicans who sit on the Public Health Committee. Possibly harming the business interests of “immoral establishments” might be a plus. But voting to tax those establishment still meant voting for a tax.
So two Republicans in hotly contested GOP primaries, Sen. Shane Cultra (R-Onarga) and Sen. Christine Johnson (R-Shabbona), discreetly left the hearing room just before the committee began voting on what some wisecrackers have called the “pole tax.” The bill passed unanimously, but without those two votes.
Johnson’s primary opponent Sen. Dave Syverson (R-Rockford) also sits on the Public Health Committee, but he voted for the bill. Johnson has been running television ads blasting Syverson for favoring tax hikes and touting herself as the true social and fiscal conservative in the race.
The other walkout, Sen. Cultra, is also the more socially conservative candidate in his Republican primary race against state Rep. Jason Barickman (R-Champaign).
As I mentioned earlier, things are expected to calm down a bit after the March 20 primary. The Republicans still will oppose most taxes, but the mere mention of the word probably won’t spook them so badly once they get past their elections. Maybe then everybody can grow up and start acting like adults.
Discuss.
posted by Rich Miller
Monday, Mar 12, 12 @ 7:52 am
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Rich, I think you’re missing the “r” in “your” in your hed. Long weekend with the Alabama Shakes?
Comment by Coach Monday, Mar 12, 12 @ 8:05 am
Great column. Interesting stuff.
Too bad the GOP has no lawmakers with a spine in this state. They’ll run away from a vote, but can’t make a winning case if their life depended on it.
Comment by just sayin' Monday, Mar 12, 12 @ 8:06 am
Thanks, Coach. And, yes, it was a long weekend. Very long. Campaigns and music, music and campaigns. And the South Side Irish Parade. Rode hard and put away wet.
Comment by Rich Miller Monday, Mar 12, 12 @ 8:20 am
Hilarious to think that an upcoming primary could make you too scared to vote up or down on a cover charge at a shake-em shack. Not exactly candidates for any tough votes down the road.
Comment by wordslinger Monday, Mar 12, 12 @ 8:39 am
=The money generated would be sent to the state’s Sexual Assault Prevention Fund.=
Some skepticism is warranted, since the state has a long history of raiding funds and using them for other purposes.
Comment by Louie Monday, Mar 12, 12 @ 8:46 am
“Shake em shack” is my new favorite term ever. Can’t wait for the opportunity to deploy that one…
Comment by Colossus Monday, Mar 12, 12 @ 9:01 am
I thought at least part of the idea of taxing tobacco products was to get people to stop using them. Or is that too much social engineering for Republicans?
Comment by Cheryl44 Monday, Mar 12, 12 @ 9:07 am
It’s wishful thinking that “acting like adults” will return for these folks, as we near the general.
Comment by mark walker Monday, Mar 12, 12 @ 9:25 am
I really miss the annual post on hair braiding legislation. Common Springfield, we’re counting on you!
Comment by Shore Monday, Mar 12, 12 @ 9:38 am
I thought at least part of the idea of taxing tobacco products was to get people to stop using them.
Actually, the idea is to tax them to the asymptotic point just before diminishing returns are realized. The state, as well as its smokers, can also be addicted to tobacco.
Comment by Six Degrees of Separation Monday, Mar 12, 12 @ 9:43 am
@ SDoS
What you’re referencing is the most efficient way to tax them (maximizing your returns), but I don’t think this the goal.
However, you’re right…..the state desperately needs tobacco revenues.
Comment by Anonymous Monday, Mar 12, 12 @ 10:16 am
To me the art of taxation means how many feathers can be plucked from the goose before it begins to squack. I think on the tobacco front, the goose is beginning to open its mouth
Comment by Informer Monday, Mar 12, 12 @ 10:20 am
It shouild not surprise any of us that legislators are not acting as adults. The behaviors are not confined to any oneparty however. That is how we got in this mess in the first place.
Comment by johhnypizza Monday, Mar 12, 12 @ 10:50 am
It’s a shame votes are determined by the election cycle.
Comment by Wensicia Monday, Mar 12, 12 @ 11:16 am
Its worth noting that Democrats have had no problem supporting greater transparency and accountability, while Republicans have struggled with adequate revenue.
Comment by Yellow Dog Democrat Monday, Mar 12, 12 @ 11:38 am