Stop a Tax Hike in Illinois

In an effort to reduce the state budget deficit, Governor Rod Blagojevich has proposed raising state excise taxes on cigarettes by 75 cents per pack, an increase of more than 75 percent.  This is on top of the 70 percent increase that was imposed only two-and-a-half years ago! 

The Congressional Budget Office has stated that excise taxes are the most regressive type of tax and tobacco excise taxes are “the most regressive of all.”  Simply put, if enacted, this tax increase will disproportionately impact the poor and those living on fixed incomes.   

What’s more, history shows that higher taxes do not produce projected revenue.  In the 1990s, after Canada learned that its excessive excise taxes resulted in both lost revenue and increased crime, the government scaled back the taxes.  A recent tax increase in Colorado is generating 24 percent less revenue than projected. 

Even worse, in state after state, cigarette tax hikes have resulted in increased illegal smuggling, which has even been exploited by terrorist groups, like al Qaeda and Hezbollah, to fund their operations!             

The real solution to Illinois’ budget deficit is clear:  Reduce spending; do not raise taxes.   

Please click here to tell your state representative and senator to forgo new taxes and instead reduce wasteful spending!

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