When taxes go up on tobacco products, revenue forecasts always fall short. Some people quit smoking, but those that continue the habit drive across state lines to buy cigarettes or purchase them from smugglers.
And my fellow Illinoisans are adept at gaming any system. It's in our blood.
From Gatehouse News:
Illinois' one-dollar-per-pack cigarette tax increase that took effect a year ago this month is expected to fall $130 million short of initial estimates, meaning it won't raise quite as much as projected for school capital projects because of the way the funding formula is set up.Technorati tags: politics Democrats Illinois Politics chicago chicago politics cigarettes smoking taxes business economy news
The increase, which hiked the state’s 98-cents-per-pack tax to $1.98 last June, is expected to bring in about $212 million in additional revenue for the current fiscal year, which ends June 30.
That’s well short of the $350 million in additional revenue originally projected, according to a monthly report released at the end of May by the Commission on Government Forecasting and Accountability.
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