Capitol Fax.com - Your Illinois News Radar » A look at the governor’s cigarette tax hike plan
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
A look at the governor’s cigarette tax hike plan

Monday, Apr 23, 2012

* The Sun-Times editorialized on behalf of the cigarette tax hike to help patch the state’s huge Medicaid funding hole

First, a tax on cigarettes will deter smoking. The American Cancer Society estimates the tax increase would stop 72,700 children in Illinois from becoming smokers and encourage 53,400 adults to quit. That’s no small accomplishment, given how terrible smoking is for our health.

Second, smoking-related health-care costs drive up Medi­caid spending, a fact Gov. Quinn emphasized when he met with the Sun-Times editorial board Friday. Smoking is estimated to cost the state $4.10 billion a year in health-care costs — and $1.5 billion of that tab is picked up by Medicaid.

“This is a very big public health measure,” Quinn said, “and anyone who is involved in public health is all for this.”

Third, trying to balance the state’s Medicaid budget with cuts alone means walking away from federal dollars. No other tax offers that huge federal match.

Fourth, Quinn already is proposing 58 stunningly deep Medicaid cuts. Further cuts would be devastating.

Fifth, the last three Republican governors of Illinois backed cigarette tax increases five times.

One significant quibble: Any tax hike or revenue increase or budget cut elsewhere could be used to leverage federal Medicaid dollars.

* The Tribune also backs it

All of this is necessary, but doesn’t reach $2.7 billion. Enter the $1-a-pack cigarette tax, which would generate an estimated $337.5 million. Because Washington matches each state dollar spent on Medicaid, the state’s gain would double, to $675 million. We support this hike for two reasons: Medicaid, which provides care for smoking-induced illnesses, needs the money; the American Cancer Society estimates that tobacco cost Illinois $1.5 billion in Medicaid spending last year. And making cigarettes costlier means many people will quit or never start.

And

We hope Democrats, including those beholden to unions, will build on Quinn’s plan. Just as we hope Republicans will do the same — and drop their opposition to including a cigarette tax hike in any Medicaid rescue.

For Illinois to escape its downward spiral, its politicians of both parties will need to abandon some of their customary talking points (”No benefit reduction,” “No tax hike”).

We take it as a real measure of leadership that Gov. Quinn — accepting his “rendezvous with reality” — is pressing the case for major Medicaid and pension reforms. Friday afternoon, meeting with our editorial board, he said that legislative agreement to rescue Medicaid and pensions “will make Illinois a whole lot better state.”

He’s right.

* A Paul Simon Public Policy Institute’s 2011 poll of southern Illinoisans showed a large majority supported the cigarette tax hike

While Southern Illinois voters remain adamantly opposed to raising major taxes to plug the state’s $15 billion budget deficit, they show some support for increasing the cigarette tax, according to the latest Southern Illinois Poll conducted by the Paul Simon Public Policy Institute at Southern Illinois University Carbondale.

The poll, taken Feb. 14-22, showed 60.3 percent of registered voters in the state’s southernmost 18 counties favor a $1 per pack increase in the cigarette tax. There were 36 percent opposed. The rest were undecided.

* And a statewide poll taken in 2010, at the height of Tea Party intensity, found that almost three quarters of Illinoisans backed the tax increase

A poll released Thursday by the Illinois Coalition Against Tobacco found that voters statewide supported raising the cigarette tax by $1 – from 98 cents per pack to $1.98.

Of the 502 people who were surveyed, 74 percent supported the increase. That total included 71 percent of Republicans, 81 percent of Democrats and 68 percent of independents.

Even 42 percent of smokers said they support a cigarette tax increase, the survey found.

Supporters said the tax increase was the best way to fix the state’s $13 billion budget deficit. Other options, including higher income taxes, higher sales taxes and higher vehicle registration fees, were largely opposed.

Interestingly enough, the Campaign for Tobacco-Free Kids estimated back in 2010 that the buck a pack tax hike would bring in “nearly $300 million each year.” Gov. Quinn estimates that his buck a pack tax hike would bring in well over $300 million a year.

* But the two GOP legislative leaders are opposed

“We stand with our members on the Medicaid working group against any tax increases to solve our Medicaid crisis,” noted Senate Minority Leader Christine Radogno and House Minority Leader Tom Cross. “We are encouraging the working group to continue working in a bipartisan way to come up with $2.7 billion in Medicaid reforms and cuts, not revenue enhancements.”

* Former Senate President Pate Philip, a conservative, anti-tax Republican, usually supported cigarette tax hikes, believing the impact was felt mainly by Democratic voters, which may be why some Democratic legislators are opposed.

“I’ve always been again against cigarette taxes,” said state Sen. Gary Forby, D-Benton. “My district likes to smoke. When you do a tax on this, they go over in Kentucky, they go over in Indiana and they buy them cheaper. They just quit spending money in the state of Illinois.”

Illinois has a very long border with a whole lot of states, which is probably the most logical reason to oppose a cigarette tax hike.

* Roundup…

* Components of Medicaid savings plan still open to change

* Finke: Quinn threatens no break until Medicaid deal

* Our View: Illinois’ health care, pension quandary

* Smokers Upset About Proposed Cigarette Tax Hike

* Illinois Medicaid cuts worry healthcare providers

* Local reps not excited by Quinn’s Medicaid plans - Republicans Moffitt, LaHood say targeting fraud, abuse more important

* McCaleb: Positive steps on Medicaid, pensions?

* Cancer Society supports higher Ill. tax on cigarettes

* Despite questions, Quinn’s Medicaid proposal winning some praise

- Posted by Rich Miller        

14 Comments
  1. - wordslinger - Monday, Apr 23, 12 @ 9:53 am:

    –First, a tax on cigarettes will deter smoking. The American Cancer Society estimates the tax increase would stop 72,700 children in Illinois from becoming smokers and encourage 53,400 adults to quit. –

    If that’s the case, I think Quinn has an opportunity to get Illinois employers that offer health insurance behind this tax increase.

    A lot of employers are starting to offer incentives/disincentives to get their employees to stop smoking to keep their health insurance premiums down. This would seem to be a no-cost initiative they could get behind.

    Full disclosure, I’m a long-time smoker and have never tried quitting.

    But I’m also someone who thinks marijuana should be legalized and taxed heavily. Can’t be a hypocrite about cigarettes.

    It would force smokers to pay more of their fair share for the true costs of their health care. Gee, where have I heard a similar idea, before?


  2. - Oberver - Monday, Apr 23, 12 @ 9:57 am:

    I have read now that some studies are showing that since smokers live less longer they incurr less costs than non smokers overall on medicaid. I wish I knew how to verify this independantly. However I have a different suggestion. I have seen some pretty obese individuals using the link card to buy food. Perhaps by somehow cutting back on the types or quantities of foods the obeity rate could be cut similarly cutting medicaid health care costs.


  3. - Colossus - Monday, Apr 23, 12 @ 9:57 am:

    100% agree with Wordslinger, as per usual.

    While it does seem that employers could get behind this idea, it would also make sense that employers could get behind a plan that would allow them to stop paying for their employee’s health insurance while still supplying them with a healthy workforce. Hmm…if only there were a plan like that, or maybe even a law…

    Businesses commenting on, supporting, writing and opposing laws rarely make sense to me these days.


  4. - Shore - Monday, Apr 23, 12 @ 10:10 am:

    I am in strong support even as a republican for tax increases on booze and cigarettes so this is fine with me.


  5. - John Bambenek - Monday, Apr 23, 12 @ 10:11 am:

    Wordslinger-

    You assume cig taxes will actually go to pay for the person’s increase Medicaid costs… which was also the assumption with the Railsplitter settlement money.

    It would be one thing to match health care premiums to actuarial risk… that might be economically defensible.

    That said, there are fewer and fewer smokers every year, which means tying a long-term non-discretionary program (Medicaid) to a consistently declining revenue source means we’ve overtly adopted unsustainable funding and will have to just go back and either introduce more cutes or add more revenue to make up the difference.


  6. - langhorne - Monday, Apr 23, 12 @ 10:51 am:

    doesnt anyone see the folly of increasing a consumption tax with the intent to reduce consumption, in order to fund programs whose costs we cant cover because they are rising so fast?

    the tax was increased from 58 cents per pack to 98 cents july 1,2002, about a 69% increase. but revenue increased only 33% in fy 03. revenue went up another 19% in fy 04, and has declined each year since.

    state cig revenue was $561 mil in fy 11 and quinn says a 100% increase in the tax will increase revenue $337 mil–60%!! the example of the last increase shows the estimate should be half that amount, or less.

    cigs are the only bootlegged product where the quality stays exactly the same. your rolex knockoff is crap, but the marlboros from another state are exactly the same.


  7. - Cheryl44 - Monday, Apr 23, 12 @ 11:06 am:

    As a former long time smoker, I think raising the tax is a good idea. I don’t think it will pay for what it’s supposed to, but anything that will help other people quit is a good idea.


  8. - haverford - Monday, Apr 23, 12 @ 12:01 pm:

    “cigs are the only bootlegged product where
    the quality stays exactly the same. your rolex
    knockoff is crap, but the marlboros from
    another state are exactly the same.”

    And thus the first Indiana jewelers’ libel lawsuit was born.


  9. - Robert - Monday, Apr 23, 12 @ 12:23 pm:

    ==doesnt anyone see the folly of increasing a consumption tax with the intent to reduce consumption, in order to fund programs whose costs we cant cover because they are rising so fast?==
    I see the folly and agree with your point. However, the alternative is even deeper cuts to Medicaid children and families, and the total amount of proposed cuts to Medicaid is already the largest part of the solution proposed.


  10. - wishbone - Monday, Apr 23, 12 @ 2:17 pm:

    Smoking is now mostly a class issue. Sorry, but it is a major indicator of your social class. Increasing a regressive tax on addicted members of that class to help pay for medical care to that same class seems unfair, but screw them. Unlike a lot of their problems this one is purely self inflicted.


  11. - wordslinger - Monday, Apr 23, 12 @ 4:59 pm:

    –Smoking is now mostly a class issue. Sorry, but it is a major indicator of your social class.–

    What class is that? And what are the classes here in the SOI and USA?

    I’m a smoker and a pretty classy guy, myself.


  12. - wishbone - Monday, Apr 23, 12 @ 6:28 pm:

    Wordslinger: You may not believe there are social classes in this country but, of course, they exist. Check out the percent of smokers by education level which is a primary indicator of social class. See
    http://www.cdc.gov/vitalsigns/AdultSmoking/index.html


  13. - BillA518 - Tuesday, Apr 24, 12 @ 8:46 am:

    This is such a bad idea for two reasons -
    1. The huge influx of cash will be spent on new projects that will become ‘essential’ in a couple of years…just about the time the revenue dries up due to decreased sales. (but isn’t that what they want?)
    2. Just like the multi-billion dollar tobacco settlement of years back, the claims are based on junk science and cherry-picked statistics. “the American Cancer Society estimates that tobacco cost Illinois $1.5 billion in Medicaid spending last year.” That’s true. What they don’t want you to know is that tobacco SAVED Medicare over $2 billion because people who have been paying into Medicare (and Social Security) for decades, died from tobacco-related illness before they were old enough to draw ANY benefits.


  14. - Rich Miller - Tuesday, Apr 24, 12 @ 9:02 am:

    ===The huge influx of cash will be spent on new projects ===

    Sez who?


Sorry, comments for this post are now closed.


* Reader comments closed for Thanksgiving
* Campaign miscellaneous
* Question of the day
* Rauner's appointees kept Illinois in Crosscheck
* Illinois Policy Institute's lobbying arm got $2.5 million last year from group that bankrolled Merrick Garland fight
* There's more to Springfield than horseshoes
* Pritzker unveils opioid plan
* *** UPDATED x1 - Mendoza responds *** Rauner admin: "There can be no assurance that a budget will be enacted in future fiscal years"
* New Proft TV ad claims Durkin and Madigan "like Illinois state government just as it is"
* Rauner: "Illinois is at the edge of disaster"
* Shimkus won't endorse in gubernatorial primary
* Pritzker is taking a page from Rauner's 2014 campaign (in a good way)
* Biss wants more tax return details
* *** UPDATED x5 - Pritzker, ILGOP, Pritzker, Rauner, ILGOP respond *** Pritzker clarifies tax stance after Crain's interview
* Sen. Murphy endorses Silverstein challenger
* State GOP again demands that Durbin and Duckworth give away their Franken money
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Loading


* Illinois governor's race: 'Are we going to have.....
* McCaleb: Reasons to be thankful in tax-and-spen.....
* Gubernatorial race coming to a polling place ne.....
* GUEST COLUMN: Legislating responsibly in regard.....
* Ex-Buffalo Grove Mayor Ends 59th District State.....
* GEORGE WILL: 2018's most important, expensive, .....


* Philanthropy earns Howard Buffett spot on Wall of Fame
* Police to target shoppers abusing handicapped parking spots
* Man stabbed to death in Carbondale, girlfriend charged
* TransCanada: Over 24K gallons of oil recovered from spill
* Court: Stress no grounds for rescinding guilty pleas
* Fire at Metra station in Wheaton
* Report says multiple DCFS workers in Illinois attacked
* 3 charged in April slaying of Chicago area Lyft driver
* Operative in Mexican drug cartel appears in Chicago court
* Sexual harassment lawsuit against Rutherford dismissed

* Laura Campbell suspended from IDOT job for interviewing friend for job
* Sex-harassment lawsuit against Rutherford dismissed
* Hunters take 51,365 deer during first firearm weekend
* House task force to review sexual harassment
* Electric cars, better fuel efficiency spell doom for Illinois gas tax
* Springfield wants out of legislation limiting payments for 5G antennas
* Fact check: Are Gov. Rauner's grandparents immigrants?
* Londrigan accused of attacking Davis for 'opposite' of remarks
* Gov. Rauner signs sex harassment legislation
* Under the Dome Podcast: Governor's race, sexual harassment, Rodney Davis

* Judge swears in new U.S. attorney for northern Illinois
* Get ready to pay more to keep the lights on . . .
* Get ready to pay more to keep the lights on—by turning power plants off
* Chicago is buying into bitcoin in a big way
* Correction


* Woman, 24, shot in Old Irving Park
* Georgia Nicols horoscopes for Nov. 24, 2017
* Dear Abby: Tenant misbehaves, blames sleepwalking
* 2 charged after running from stolen vehicle in Loop
* High school friends play 50th Turkey Bowl
* Lombard home uninhabitable after fire, no injuries reported
* Flynn lawyers make a break with Trump team
* Barton to go mum over disclosed photo, citing probe
* Sound heard in Argentine sub search was likely ‘explosion’
* Woman, 24, shot in Bronzeville drive-by


* Sound heard in Argentine sub search was likely 'explosion'
* Zimbabwe's ruling party assured Mugabe he wouldn't face prosecution
* 3 wounded in Chicago shootings, including 1 shot by security guard
* Man charged with robbing students in Grant Park, 2 others still sought
* Homeless man accused of stealing $50 from man who said he had no cash
* Man killed is among 6 shot: 'You have to hope that no one comes down the street shooting.'
* Odd holiday gifts for the Chicago sports fan in your life
* Man says, 'You deserved it,' shoots at slain man's grave: Prosecutors
* Blackhawks' John Hayden fined for second high-sticking penalty in three games
* Friday's matchup: Bulls at Warriors


» Cinderella Chicago Football Team Heads to State, Aiming For Repeat
» Senior Republican Congressman Declines To Endorse Gov. Rauner
» AT&T Pushing 'Small Cells,' But Some Cities Object
» Third-Party Candidates Want Rules Eased To Get On Ballot
» Third Party Candidates Want Rules Eased To Get On Ballot
» How Chicago’s New Budget Could Affect You In 2018 — And Beyond
» How A Chicago Cop Sentenced To Prison Could Affect The Jason Van Dyke Trial
» Illinois Lawmaker's Plan To Combat Opioid Abuse With Cannabis
» Black Lives Matter Takes On Hunger With New Food Box
» State Week: Are Voters Thinking About 2018?


* Laura Campbell suspended from IDOT job for interviewing friend for job
* Counterpoint: Car buyers lose when government tells them what to buy
* Point: US automakers are swept up in a global electric-vehicle rush
* Eugene Robinson: Congress should investigate Trump's alleged sexual misconduct
* Thumbs Up: To local football teams going to state tournaments
* Bernard Schoenburg: Lineup for 2018 to get going with filing
* Our View: Forget the excess, give thanks for simple needs being met
* Sex-harassment lawsuit against Rutherford dismissed
* Hunters take 51,365 deer during first firearm weekend
* Byron York: Six scenarios for GOP disaster in Roy Moore Senate race


* Belleville Thanksgiving 5K
* Belleville seeks to demolish 'dangerous' home
* Belleville woman gives emotional appeal to save home from demolition
* Crash claims another life
* Hundreds of volunteers, families turn out for busiest 'Mr. Thanksgiving' meal yet
* Carbondale native walks in 'Project Runway' season finale
* Third person dies after I-55 crash that killed Staunton sisters
* Belleville apartment building evacuated after Thanksgiving Day fire
* Holiday shopping kicks off in Decatur
* Road construction will mean detours in Davenport this week


* AP source: Flynn lawyers make a break with Trump team
* China reports breaking up gang that moved $3 billion abroad
* Bucket Bowl: Indiana, Purdue put postseason hopes on line
* Giants get 1 1st down, 47 yards in half, lose 20-10 to Skins
* Mississippi stuns No. 16 Mississippi State 31-28 in Egg Bowl

* US lawmakers urge Trump to prod Rody on dr...
* Republican tax overhaul plan gets mixed re...
* Mary Kramer is named group publisher of Cr...
* Geneva Chamber honors Gaines for 40 years ...
* DOJ to ban US lawmakers should Duterte ord...
* Panel encourages women to consider careers...
* US lawmakers to Duterte: 'Sovereignty does...
* Letter: Why I support Lauren Underwood - N...
* Hultgren and Ruppersberger: Protect infras...
* This RSS feed URL is deprecated

* This RSS feed URL is deprecated...

* This RSS feed URL is deprecated...

* Can Chicago support more pro soccer? Does North Side want its own team?
* Refugee Families Celebrate First Thanksgiving At St Thomas Of Canterbury
* The Week In Chicago Rock
* What You Need To Know About The FCC's Plan To End Net Neutrality
* Happy Thanksgiving & Happy Holidays
* Thanksgiving – a holiday diminished?
* Watch Hanbun chef David Park turn a spicy, fermented condiment into dessert
* Restaurant Slated For Lawrence House Retail Space
* Thanksgiving in Chicago: best things to do
* Is it time to reimagine justice and accountability for sexual misconduct?


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Razer Phone’s camera deemed “a dealbreaker,” but it will get better
* The Pocketnow Black Friday 2017 deals watchlist
* The Moto Z’s Alexa Smart Speaker is mostly useless
* [TA Deals] The Treblab X11 headphones are discounted more than 80%
* [Deal] Pick up some cheap SD cards from Amazon’s Black Friday sales
* Verizon quietly launches $30 and up Ellipsis 10 HD, offers free ZenFone V with new lines
* Pixel phones get instant access to Google Lens through Google Assistant

* Terrerobytes: Hall of Fame letter obscures Hall of Fame ballot
* Sox team with Chicago comedian vs. cancer
* MLB clears two offseason obstacles
* Black Friday sale: Take 25 percent off in Shop
* Take 25 percent off Shop orders $25 or more
* Climb machine: Eloy working way up to MLB
* First year of White Sox rebuild closing with 40-man maneuvering


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller