Lawmakers, others say increase could help budget crisis

April 5, 2002

By ADRIANA COLINDRES
of Copley News Service

SPRINGFIELD - A 75-cents-a-pack increase in the state's cigarette tax would help relieve the state's budget problems and cut down on the number of Illinoisans who smoke, a handful of lawmakers and about 300 organizations said Thursday.

The Illinois Children's Initiative, a coalition of public health, labor, educational and religious groups, called on the legislature and the governor to approve such a tax hike. Members of the Children's Initiative include the Illinois Coalition Against Tobacco, the Illinois Hospital Association and the American Federation of State, County and Municipal Employees.

Raising the tax on tobacco would be sound public health policy and sound fiscal policy, said Diana Hackbarth, chairwoman of the Illinois Coalition Against Tobacco. A 75-cents increase eventually would result in 96,000 fewer "youth smokers" and 83,000 fewer adult smokers, Hackbarth said.

"Youth are among the most price-sensitive consumers," so fewer of them will buy cigarettes when the price goes up, she said at a Statehouse news conference.

At present, the cigarette tax is 58 cents a pack. Most brands now cost smokers $3 to $5 a pack.

Imposing the higher tax would mean "we get a two-fer" because fewer teens would smoke, and the state would get an extra $500 million to help plug holes in the budget, said state Sen. Barack Obama, D-Chicago.

"It's going to be hard for us to find a better solution than this one," he said.

The governor's Bureau of the Budget estimates the potential revenue from such a tax increase at $380 million to $400 million.

Rep. Donald Moffitt, R-Gilson, called the idea a "reasonable, bipartisan plan of action."

"We have a serious budget issue," Moffitt said. "To do nothing is not an option. To do nothing would be irresponsible."

Rep. Sara Feigenholtz, D-Chicago, said the extra revenues generated by a higher cigarette tax should be spent on human services.

While no Senate Republicans attended the news conference, a spokeswoman for Senate President James "Pate" Philip said later that he has "certainly left the door open" for a possible increase in the cigarette tax.