Jul 26, 2007 7:16 am US/Central
State Senators Fight For New Cigarette Tax Hike
Senate Democrats Hope 75 Percent Increase Will Help Resolve Budget Battle
CBS 2's Mai Martinez contributed to this report.
SPRINGFIELD, Ill. (CBS) ―
Just after a statewide indoor smoking ban was signed into law, state lawmakers are hoping a hike in the cigarette tax will help bring an end to the budget deadlock, which has reached a record 56 days.
As CBS 2's Mai Martinez reports, the Democratic majority in the state Revenue Committee approved a state tax hike on cigarettes in a 6-3 vote. If the bill becomes law, the state tax on a pack of cigarettes would jump by 75 cents, making the total state tax on a pack of cigarettes $1.73.
Many cities and counties – including Chicago and Cook County – also levy taxes on tobacco products.
Supporters say the state cigarette tax increase would generate about $328 million a year, which could be spent on roads, schools and other construction needs. They also say a tax increase might also discourage people from smoking.
"We can use that money to fix our roads and bridges in Illinois," said Sen. John Cullerton (D-Chicago). "We can also find another benefit, because there's health care savings."
But opponents say another tax increase on cigarettes ultimately could reduce state revenues.
"There's already a diminishing return, and at some point it's going to go negative," said Sen. Chris Lauzen (R-Aurora). "People will stop buying cigarettes."
Senate Democrats hope by tying the money raised to funding for construction of schools and other capital projects Republicans are seeking, they will be able to draw Republican support for the tax hike.
As it stands Thursday morning, the bill goes before the full Senate on a party line vote.
Also Wednesday, the Senate public health committee voted 7-4 to send to the Senate floor a scaled-back version of the Blagojevich health care plan, despite some strong Republican objections. No fan of the governor's health care plan, House Speaker Mike Madigan predicted trouble for it in the Senate.
The state's temporary spending authority expires July 31. Then come the payless paydays for some state workers and likely layoffs for other public employees, including teachers and transit workers.
Earlier this week, Blagojevich signed into law a ban on smoking in all public buildings, including restaurants and bars. The law goes into effect on Jan. 1, 2008, replacing a patchwork of local ordinances.
Smoking will be allowed in private homes and cars, but that's about it for those looking to light up indoors. Smoking will be allowed outside, with some restrictions. There are two exceptions for businesses: retail tobacco shops and a limited number of hotel rooms.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Prosecutors Say Chicago Man Had Al-Qaida Video 29 mins ago
Stumble It!
