* For some reason or another, I forgot to post my weekly syndicated newspaper column yesterday. Not sure why. Here it is…
A big question on a lot of Statehouse minds right now is: Why would Senate President John Cullerton all of a sudden decide to string out his members yet again on a dollar-a-pack cigarette tax hike when he surely knows that the House will kill it for the umpteenth time?
Cullerton wants to raise money from the cigarette tax so he can kill off the controversial law legalizing video gaming in taverns, clubs and truck stops. Video gaming proceeds are supposed to subsidize part of the state’s massive capital construction plan, but the video gaming program hasn’t got off the ground after two years of preparations because the Illinois Gaming Board is taking its time to develop strict standards.
Part of the answer is that Cullerton loves the cigarette tax hike idea in and of itself. The man just downright loathes cigarettes and believes raising the tax would cause people to stop smoking and prevent kids from starting.
But when the four legislative leaders sit down to cut a deal, they’re supposed to stick to that deal unless the other leaders go along. The capital plan was just such an agreement. Breaking a pact like that is just not done. Ever.
You rarely see stories about the tax and fee hikes that fund the state’s construction program, and you don’t see many articles about some of the more questionable projects in the package. That’s because all the leaders vowed to each other that they wouldn’t stir up any trouble. Those vows are usually as solemn as any priest’s, so they’re never violated, but Cullerton is now doing it. Why?
Cullerton is said to be tired of Democrats being blamed for the video poker law, which has been blasted by most editorial pages in the state. “Maybe now they’ll understand that it was the Republicans who wanted this, not us,” explained a Cullerton aide last week.
The Republicans actually came up with the idea of legalizing video gaming in taverns, clubs and truck stops. But the Democrats have worn the jacket for the much-maligned program because they’re in the majority and the hugely controversial Cook County Democratic Party Chairman Joe Berrios was one of the top lobbyists for the video gaming industry.
It didn’t help matters much when former mobster turned government informant Frank Calabrese, Jr. told Fox Chicago the other day that he believed infiltrating the video poker industry would be a piece of cake.
“I mean, I laughed when I seen that,” Calabrese told Fox’s Dane Placko about the video poker legalization measure. “I mean, really. Why? I could go back there and show you how fast I could get in the middle of it,” he said from his Arizona house.
“It’s Math 101, OK? I’m not gonna go in there and put my name on a license and buy a bar and ask for three machines. I’m coming to you who’s totally legit and say you’re gonna buy the machines from this guy, and this is what you’re gonna pay him and that guy’s gonna help me in some way,” Calabrese said.
In the same story, former FBI organized crime director Tom Bourgeois told the channel that the General Assembly had opened the doors to the Outfit.
“You’re just providing an avenue for organized crime to re-root itself and find ways to become more powerful. It’s just too easy to do that and of course, the legislation provides opportunity for very little oversight,” Bourgeois claimed.
In reality, neither Calabrese nor Bourgeois are likely correct. For one thing, the current “amusement purposes only” video poker machines (most of which actually pay out in the real world) are already connected to the mob in one way or another. Legalization is seen by proponents as a way to get the mob out, not let them in.
To that end, the Illinois Gaming Board has spent almost two years attempting to devise a fail-safe plan to prevent organized crime from sticking its nose into the new business. A mobster just couldn’t strong-arm a tavern owner into using a particular machine, as Calabrese claimed, because machine distributors will have to undergo vigorous background checks and deal with strict government oversight — neither of which happens today.
So, publicly disassociating himself from video poker and letting Republicans take the lead in keeping the law on the books has real public relations and partisan advantages for the Senate president. And that’s why he’s doing it.
- wordslinger - Tuesday, Mar 22, 11 @ 8:29 am:
I buy the column’s explanations of Cullerton’s motivations, but I find Cullerton’s logic surprisingly off.
He seems to be stirring the pot and honking off his leadership colleagues for little benefit. Video poker was probably forgotten by most folks by now. Tax increases, even on cigarettes, aren’t terribly popular right now.
I wonder how much weight was attached to Calabrese’s general remarks about chumming up to politicians and ingratiating himself through their “weaknesses.”
I don’t buy Calabrese’s logic at all that legal video poker would be a boon to the mob (they own it already). But maybe it stung and Cullerton figures the more distance, the better.
- Old Milwaukee - Tuesday, Mar 22, 11 @ 8:50 am:
Cullerton may get some self satisfaction from pushing away from video poker and making the Republicans stand up for it, but the long term impact of that action outside the Capitol building will be limited.
Inside the Capitol, the impact may be more relevant and will impact his ability to govern.
At a time when the legislature is trying rebuild trust after the Balgojevich era, welching on a major deal like the capital program will not serve the Senate President well as he tries to deal with the legislative leaders and other legislators on other issues.
On the cusp of other deals, the question will often come up, can we trust him? Legislators who answer no to that question will point to this high profile example and many will nod their heads in agreement.
It’s a net loss for him.
- Cincinnatus - Tuesday, Mar 22, 11 @ 9:05 am:
How does Cullerton’s renege affect the opinion of those on this blog who feel the Republicans should lead or partner on issues concerning the state?
- GMatts - Tuesday, Mar 22, 11 @ 9:13 am:
Good Lord….anybody who pays attention to the “Soprano’s” learns how things are done to rip off the weak citizen and government. You don’t need “Tree Fingers Louie” to break the story. I tell you, everything you need to know about life is in Da Soprano’s.
- downstate hack - Tuesday, Mar 22, 11 @ 9:16 am:
Cullerton’s actions are puzzling. Asking for another tax increase while backing away from legislation he and his members voted for seems to be a two sword negative for him and his party. JMHO.
- Capra Corn - Tuesday, Mar 22, 11 @ 9:17 am:
If his intent was to be portrayed as the guy who doomed video gaming (on the heels of the Calabrese interview) it seems to me the strategy worked.
Ah, perception.
- Cincinnatus - Tuesday, Mar 22, 11 @ 9:18 am:
- GMatts - Tuesday, Mar 22, 11 @ 9:13 am:
“I tell you, everything you need to know about life is in Da Soprano’s.”
As any Italian (like me) will tell you, it’s not the Soprano’s, it’s the Godfather (but not Part III).
- Tom Joad - Tuesday, Mar 22, 11 @ 9:27 am:
The capital bill needs to be downsized anyway. There is too much “ward type fiefdom” projects in the bill, projects which other members won’t criticize or reveal because they are within the other member’s district.
Member projects used to make sense when they were for job creating projects around the state. Each year the projects got farther afoot from the original intent. Now the grants to churches, friends, hiring relatives, branches of colleges, training projects and other whims of constituents broought to members has to stop. Now that the Feds are finally investigating training projects some member used as employment programs for their staff or friends, maybe other projects can be reviewed. Some of these have been known and whispered about for years by members and staff in the capitol. It is time to clean up this misuse of member projects before more legislators have to answer to the Feds and the voters.
- OneMan - Tuesday, Mar 22, 11 @ 9:44 am:
Or they could have had the state lottery or the gaming commission own the machines and taken the whole idea of ‘machine owner’ out of the picture. Then divided the machine owner cut between the sate, the city and the location. Everyone wins.
- Rich Miller - Tuesday, Mar 22, 11 @ 10:04 am:
===Or they could have had the state lottery ===
That was my idea. Nobody listened. The Lottery already has a statewide network set up. A wasted opportunity.
- OneMan - Tuesday, Mar 22, 11 @ 10:17 am:
But who was going to lobby for the lottery to run it. The machine operator part of the package is in many ways the sweetest deal.
- CircularFiringSquad - Tuesday, Mar 22, 11 @ 10:18 am:
It is always amazing how lazy some can be.
How hard would it have been to ask that meathead Calabrese how the mob cozied up to all the vendors to the casinos?
We guess his answer would be “duh, we failed”
How about your Rosemont deal?
“Duh, that went in the dumpster too”
So they put the gaming board in charge of video poker. so far their track record on a clean supply chain is unblemished. It might have been busy if video poker has been assigned to the board at the Doanld E. Stephens CONvention Center
It is a tough process. Look at history. Ask a question.
There is a reason his readers at the Tribune call him Kassamoron isn’t there?
- too obvious - Tuesday, Mar 22, 11 @ 10:44 am:
Cullerton is brilliant on this one. Exposing the Illinois Republicans as the tax and spenders they truly are.
- Earl - Tuesday, Mar 22, 11 @ 10:51 am:
Whether the background checks are done by state police or revenue,or whoever these attempts to control corruption in this business will be performed by people who work for a corrupted system.OC will maintain it’s presence because it’s an accepted influence in our state.To expect anything else may be a bit naive.Until there is some way of changing the political and citizen mindset it’s going to remain “pay to play” in Illinois.Wish there was an easy solution,but there doesn’t seem to be.
- Bill - Tuesday, Mar 22, 11 @ 12:01 pm:
Could this be a ploy on Cullerton’s part to get Jimmy DeLeo appointed video gambling czar?
- GMatts - Tuesday, Mar 22, 11 @ 12:11 pm:
To Cincinnatus: Lets agree that between the two, all underside is availabe to learn.
- OneMan - Tuesday, Mar 22, 11 @ 12:31 pm:
Ummm, I guess I am missing this. Video poker would be new. Today outside of a casino in Illinois you can’t legally win money at one of those machines outside a casino.
The state requiring someone to pay the state more when a purchase of tobacco occurs, is by it’s very nature a tax. A fee placed upon a currently legal transaction.
Video gaming is many things, but it isn’t a tax.
- just sayin' - Tuesday, Mar 22, 11 @ 12:52 pm:
“Video gaming is many things, but it isn’t a tax.”
OneMan, that’s absurd. How do you think the state collects its share of the revenue from video gambling? You think the quarters just go through a slot and directly to the state’s account? Of course not, it’s via a tax, just like all gambling.
Also, the same GOP bill in 2009 that gave us video gambling also raised taxes on many grocery items, liquor, beer, and driver’s licenses, etc.
Republicans in this state say they are against taxes, except when they raise them, which historically has been often. Quinn in fact is the first Democrat governor to ever raise the state income tax. Until now had always been Republicans. A Republican governor also first instituted the income tax in IL.
- OneMan - Tuesday, Mar 22, 11 @ 1:18 pm:
Ummm, you don’t have to play and you don’t pay the state anything. Using your logic any revenue the state collects is in fact a tax. Speeding ticket, tax. If the state allows concealed carry and charges more for the license, tax.
Yes it is taxed, no it is not a tax because it’s new and it’s optional. When the state opened casinos did you consider it a tax? Using your logic anytime the state allowed a business to open it was a tax because the business would have to pay taxes.
Also
GOP Bill, really, that’s how you guys are going to spin all this now? GOP Bill?
Last time I checked the GOP doesn’t have the votes to do jack in this state. Last time I checked nothing comes to the floor unless the Democratic leaders want it there. But it’s a GOP tax increase? Sell that to your neighbors but it isn’t reality and you know it.
Was there some brief period where we had Republican Governor and Republican majorities in each house this summer that I missed?
So was the income tax increase a GOP tax increase because they were in the building when it passed?
Sen. Culbertson, of course you are going to wear the jacket, last time I checked the Democrats ran the state not the GOP.
Again using your logic anytime the state allows an economic activity it’s a tax increase because at some point someone is going to pay taxes?
Finally in many ways a cigarette tax is about as regressive of a tax as you can get. But if you want to tax a product where virtually everyone who uses it is addicted to it and think it’s not a tax increase but video poker is. Knock your self out.
Heck I don’t smoke nor do I play video poker so they both fall under my brilliant ‘tax other people plan’ why not tax lite beer while you are at it.
- just sayin' - Tuesday, Mar 22, 11 @ 1:25 pm:
So the sales tax isn’t a tax either because no one is forced to buy anything in Illinois.
And people are free to be homeless so there’s no property tax either.
It’s this kind of stupidity that keeps the GOP in the minority in IL.
- Cincinnatus - Tuesday, Mar 22, 11 @ 1:48 pm:
I will disagree with OneMan and definitely call the video gaming revenue a tax. Specifically, it is a consumption tax, and in the case of gaming, can be further defined as a tax on stupid.
If you are going to generate revenue, I can think of only a few better ways than consumption taxes. The biggest problem I see with the video gaming revenue (if they don’t re-outlaw video gaming - I am sure we all look forward to Quinn’s leadership on the issue), is that those communities opting out of the program still derive benefit from the revenue. They should be excluded.
- OneMan - Tuesday, Mar 22, 11 @ 2:10 pm:
You really equating video poker to sales taxes?
If they are the same as you say, why doesn’t Culbertson just push for an increase in the sales tax? If all taxes are the same?
Whatever, fine video poker is a tax….
That being said, isn’t it a bit illogical to tax something with a stated goal of reducing the use of said product to pay for something else?
If the goal is to reduce smoking (a noble goal, don’t get me wrong) isn’t it foolish to use that to fund capital projects.
What if it works, and smoking goes down significantly and the tax revenue goes down? You still have the same revenue problem. Yeah I know a reduction in smoking will reduce the state’s health care costs, but that is savings that will be more seen over time not immediately.
Wouldn’t it make more sense to tax something that is not being taxed in a way to discourage the activity?
The big advantage of video poker is it is totally optional (your town can vote to not allow it), it isn’t nearly as addictive as smoking (don’t see anyone standing outside in the winter playing it downtown) and provides some sort of economic benefit. Yes it is a tax on people who are bad at math but it’s a better bet that the state lottery, you don’t need a statistics degree to know that.
- Cincinnatus - Tuesday, Mar 22, 11 @ 2:55 pm:
OneMan,
I’d have no problem with increased sales taxes if they excluded tax on food and low-cost clothing.
The problem with taxing something to modify behavior is that there are no plans to reduce associated spending as revenues decrease because the tax is successful.
Using a consumption tax to fund capital projects at least make some sense since a capital project is supposed to have a timeframe. God forbid when they dump such revenue into the general operation fund.
- Demoralized - Tuesday, Mar 22, 11 @ 3:10 pm:
==God forbid when they dump such revenue into the general operation fund.==
To late.
- Rotten Cotton - Tuesday, Mar 22, 11 @ 3:53 pm:
I hear that Video Poker would already be up and running if it wasn’t for the Gaming Commission contracting with the State Police to ‘investigate and enforce’. I hear the State Police have no idea what they are doing so they just don’t do anything…
- railrat - Tuesday, Mar 22, 11 @ 9:31 pm:
Rich is right the lottery, which he did bring to light early-on, has the network and is a massive missed op.also maybe Cullerton bought property in Indiana !!!!!!LOL
- Ruby - Wednesday, Mar 23, 11 @ 5:42 pm:
Thirty states currently have higher per pack cigarette taxes than Illinois, including New Jersey ($2.70), Wisconsin ($3.50), Iowa, and Indiana. If Illinois increases the cigarette tax by one dollar it will still be lower than fifteen states. Cigarette smoking causes multiple health problems and adds to the cost of health care and health care insurance foe everyone. This is another reason cigarette smokers should pay higher taxes.
- Martino - Wednesday, Mar 30, 11 @ 12:18 am:
Smokers already pay about $25.00 per carton of cigarettes in Illinois(when you include state,federal,local,sales tax etc..)Tobacco is a legal product that has been consumed for 3000 years in one form or another.Law makers should make it illegal if they are so concerned about the health risks. But, then they would be killing the golden goose. It is only about revenue, when they say otherwise it is a bold faced lie. Alcohol kills everyday if they decided to add $25 to a bottle you may have a different attitude about this.Or what if they decide to raise coffee by $5.00 per cup?This is principle not public health.The real issue is the state is broke after collecting a record amount in taxes from the people over the last ten years.Where is the money?They won’t look at themselves and say it is waste it’s too easy to change a couple numbers and raise a tax.