Springfield -
The state's cigarette tax would leap by $1 over two years under a proposal a Senate committee approved today while hoping to come up with more money to pay down the state's big backlog of Medicaid bills.
The legislation would increase the state's 98-cent tax on a pack of cigarettes by 50 cents this year and another 50 cents next year. Lawmakers are looking at an Illlinois increase as the new federal 62-cent hike is set to take effect Wednesday.
The Illinois proposal, sponsored by Sen. Jeff Schoenberg (D-Evanston), is aimed at taking advantage of a temporary boost in the amount of matching funds the federal government will give states through the stimulus package. Schoenberg estimated the legislation could generate $1 billion over two years.
The Democrat-controlled Senate Executive Committee advanced the state tax increase on a party-line 7-5 vote and it now goes to the full Senate.
New Gov. Pat Quinn proposed a $1 state cigarette tax increase as part of his own budget proposal this month, but a spokesman had no immediate comment on the Senate version.
Written by: Ashley Rueff
The legislation would increase the state's 98-cent tax on a pack of cigarettes by 50 cents this year and another 50 cents next year. Lawmakers are looking at an Illlinois increase as the new federal 62-cent hike is set to take effect Wednesday.
The Illinois proposal, sponsored by Sen. Jeff Schoenberg (D-Evanston), is aimed at taking advantage of a temporary boost in the amount of matching funds the federal government will give states through the stimulus package. Schoenberg estimated the legislation could generate $1 billion over two years.
The Democrat-controlled Senate Executive Committee advanced the state tax increase on a party-line 7-5 vote and it now goes to the full Senate.
New Gov. Pat Quinn proposed a $1 state cigarette tax increase as part of his own budget proposal this month, but a spokesman had no immediate comment on the Senate version.
Written by: Ashley Rueff
Article provided in partnership with ChicagoBreakingNews.com.
