Cigarette tax hike approved by Ill. Senate panel
May 29, 2012
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SPRINGFIELD, Ill.—An Illinois Senate committee has agreed to raise cigarette taxes by $1 a pack, setting the stage for a final vote on the proposal.
The tax increase passed 9-4 along party lines. If the full Senate approves the idea, it goes to the governor.
Democrats argue the increase will help close a hole in the state Medicaid budget and also help prevent smoking. Republicans object to any tax increase.
Officials face a $2.7 million budget problem for Medicaid. They've already approved spending cuts of roughly $1.6 billion.
The tax is supposed to generate about $350 million. That would then be matched by the federal government to yield about $700 million.
Other tobacco products would also see state taxes increase.
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