Monday, November 14, 2011

New Chicago smoking tax might go on top of new Cook County smoking tax

Lower taxes here!
As I wrote earlier this month, because Cook County's last cigarette tax hike is bringing in less money than anticipated, my board of commissioners is considering raising it again.

People are smoking less, yes, the economy is poor, but many smokers are purchasing their cigarettes in other jurisdictions or buying them on the interent.

A higher county levy will of course accelerate those behaviors. As will an increase in Chicago's cigarette tax. Former Mayor Richard Daley left an enormous fiscal mess for his successor, Rahm Emanuel--and one of the fixes being proposed by the City Council is higher cigarette taxes. Springfield will have to approve that, but the ruling Democrats there have proven themselves to be aggressive tax hikers.

I don't smoke. But politicians always assume the best case scenario in regards to revenue estimates for new taxes. So the pols will spend based upon those projections. Later always comes sooner than anyone expects--which means revenue shortfalls will have to be made up elsewhere. This issue is not just about smokers.

If the Chicago tax is approved--especially on top of a new county tax, this will be fabulous news for Northwest Indiana retailers. The city's Southeast Side abuts the Indiana border.

Who will be hurt the most by the new taxes? Poor people, particularly those who don't have cars and are unable to drive out of Chicago or Cook County.

Related post:

Cook County considering cigarette tax hikes despite falling revenue from current tobacco taxes

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Smokers Oasis Receptacle, Round, Steel, 4.5 gal, Charcoal

1 comment:

Levois said...

Insanity!!! And Rahm Emanuel is supposed to fix things not make things worse. I would think he's intelligent enough to know this might not be such a good idea!