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Bipartisan cooperation on the tobacco tax

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Illinois

* Check out the roll call for the House vote on the cigarette tax hike yesterday by clicking here.

This was an old-fashioned “structured” roll call, where the two parties work together to each put just enough votes on a bill to pass it. The bill received the bare minimum of 60 votes, with 18 House Republicans voting for it.

We haven’t seen one of these structured roll calls in years, mainly because the two parties just haven’t worked together all that well.

Like I said yesterday, more like this, please.

* Sun-Times coverage…

Another major reform to the state’s Medicaid program fell into place for Springfield lawmakers Friday with House passage of a $1-per-pack cigarette tax increase to help plug a $2.7 billion hole in the state’s health-care program for the poor.

The bill needed 60 votes to advance through the chamber and just reached that number, passing by a tally of 60-52. It now moves to the Senate, which passed a $1-a-pack cigarette tax hike in 2009.

After both chambers voted to send Gov. Pat Quinn a bill on Thursday that cut $1.6 billion in the program, legislators agreed to a tax on cigarettes and other tobacco products that supporters say will generate $800 million.

“This is an important revenue-generating measure so that we do not have to make further cuts in Medicaid,” said House Majority Leader Barbara Flynn-Currie (D-Chicago), the chief sponsor of the tax legislation.

* The Tribune has the details…

Under the proposal, the state’s current 98-cent per pack state tax on cigarettes would increase to $1.98. In addition, the state would tax small cigars at the same rate as cigarettes. Taxes also would hit so-called roll-your-own cigarettes, and taxes on other tobacco products would double.

The tobacco taxes would generate $350 million, which the state could use to leverage another $350 million from the federal government.

Another provision would put in place a new tax on the state’s hospitals with the hopes of generating $50 million in new state revenues that also could leverage another $50 million from Washington.

* Opposition…

William J. Fleischli, executive vice president of the Illinois Association of Convenience Stores, warned that stores in border areas like the Metro East would buy their cigarettes in the neighboring state. “This is an unfair tax,” he told lawmakers before the vote. “Smokers already pay more than their fair share.”

* But…

Rep. Jim Sacia, R-Pecatonica, whose district includes vast amount of border areas along Iowa and Wisconsin, acknowledged he didn’t have “a lot of constituents that support this legislation.” But, he said, his position has evolved.

“We are in the midst of the worst crisis financially this state has ever seen,” Sacia said, urging support for the measure. “It’s a tough vote but the right vote.”

* And…

Rep. Jim Watson, R-Jacksonville, voted in favor of the bill, saying it was the best option available based on the state’s financial needs. More cuts to Medicaid programs wouldn’t have passed the legislature, he said.

“I’m willing to step up and take what some people argue is a bad vote to be part of that solution,” Watson said.

posted by Rich Miller
Saturday, May 26, 12 @ 7:47 am

Comments

Hats off to Cross and those GOPers for taking a tough vote. Even if it is, perhaps, low-hanging fruit in a cigarette tax, in the neighborhood they operate in, I’m sure it wasn’t easy.

Comment by wordslinger Saturday, May 26, 12 @ 8:40 am
I’m surprised the Repubs haven’t adopted the Reagan-era terminology and started calling it a cigarette “user fee” instead of a tax. After all, you only pay the fee if you use tobacco. This would then have been a much easier vote.

Comment by DuPage Dave Saturday, May 26, 12 @ 11:31 am
William J. Fleischli, executive vice president of the Illinois Association of Convenience Stores was actually quoted as saying that if the new cigarette tax is passed, there will be a 20% reduction in cigarette consumption. That is exactly the purpose of having raising the cost of tobacco products. The higher the cost, the more smokers will have the incentive to finally quit. And, the higher price will be above the threshold that young teens will be able to afford to start smoking and become the next tobacco industry “replacement smokers” and the next addicted generation.

As for the concern of smokers driving to border states where the price of tobacco products are cheaper, well, how long do you think it will be before these neighboring states raise their cigarette tax. Missouri should be going up in November.

Comment by smokefree Tuesday, May 29, 12 @ 3:33 pm
The government is going to tax tobacco and tax tobacco and tax tobacco until it is impossible for people to afford. And, I’m not sure that is such a bad thing.

Comment by Jen Wednesday, Jun 6, 12 @ 6:01 am