House Eschews Cigarette Tax Increase

Illinois House Strikes Down Cigarette Tax Hike
"SPRINGFIELD, Ill. -- The Illinois House failed to pass a proposal to hike the state’s cigarette tax by $1. The levy was included in a larger tax proposal that would have raised approximately $7 billion a year for the state.

In a state that is facing a large budget, the increased cigarette tax would have raised the levy from 98 cents a pack to $1.98, bringing in approximately $375 million. However, the measure failed to garner the 60 votes it needed to pass, with only 51 legislators voting yes, according to WQAD in Illinois.

It still remains to be seen if the tax increase will receive new life in the Illinois Senate. As CSNews Online reported last week, State Sen. President John Cullerton (D-Chicago) pledged to reintroduce the measure of the House failed to move on it before the 96th General Assembly wrapped things up Jan. 12.

Illinois last raised the cigarette tax in 2002."

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COMMENT:
Two twists: Bondbuyers are high on Illinois Bonds. (1)That means the State's big spenders can increase State indebtedness via the bond-issuance route. This just shifts the taxpayers' burden from the current creditors to the bond holders. Taxpayers get the tax bite no matter which snake strikes. (2) The Governor of Wisconsin is inviting Illinois businesses to relocate to his state.

Is this a zero-sum game, or what?