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  • 15.11.2017 Buy Cigarettes for BitCoin

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    A California official presented enactment on Thursday that expects to raise the lawful smoking age to 21 from 18, his office said in an announcement, just over a week after a comparative move by Washington state's top legal advisor. The bill additionally comes a day after California's top wellbeing authority said electronic cigarettes are undermining to disentangle the state's decades-long push to diminish tobacco utilization. Fair State Senator Ed Hernandez of West Covina, who seats the chamber's wellbeing board of trustees, brought the bill with expectations of keeping more high...

  • 19.12.2014 Texas Smoking Ban

    A conclusion by the Paris City Council in March to ban smoking in public areas, including restaurants, angered Brent McKee. Some sort of restaurant owner, Mr. McKee was taking into consideration the customers who enjoyed a cigarette or two while nursing their own morning coffee. “I built that with my blood and perspire, and then they come in and in addition they tell me what I may and cannot do? That angry me, ” he said with the ban. Now, Mr. McKee reluctantly acknowledges a big difference of heart. “I’m glad the idea happened, I guess, ” he said a week ago....

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Cigarettes Taxes Would Raise Again

Illinois Democrats spent Monday working on a tax package that would raise personal income tax, corporate income tax and the discount cigarette tax, sweetened with property tax relief and an escape hatch designed to make the Legislature curb spending or give up the tax increases altogether. On Tuesday, a vote will show whether the effort was successful. Democrats hope to pass the package before Wednesday, when a new General Assembly is sworn in. The loss of some seats to Republicans will weaken Democrats’ majority in the Legislature.

The package includes a 2 percent income tax increase — raised from 3 percent to 5 percent — as well as a 2.2 percent corporate income tax increase and a $1-a-pack cigarette tax increase. Part of the tax increase will end in four years, part will end in 14 years, and part will be permanent.

Supporters of the tax increase for discount cigarette argue it must be part of the solution to a budget deficit that could hit $15 billion this year. The deficit is so large that the government is borrowing money to make its annual contribution to retirement systems and is months behind in paying bills.
State Rep. Frank Mautino (D-Spring Valley) explained the complex package. The tax increase can be broken down into three parts. First, the state’s $8.2 billion backlog of bills will be financed with bonds, to be paid off in 14 years.

To make the regular payments of $1.5 billion per year on those bonds, lawmakers are seeking a .5 percent increase, only until that debt is paid. An additional 1.25 percent will address state’s structural deficit of $6.2 billion – that’s the amount of unfunded expenses remaining, even after the state cut about $2 billion this year. The corporate income tax increase also will fund that deficit. Legislators still will need to cut about $800 million to make the books balance.

"Each year, since the pension obligations will eat up most of that… we will have to make additional cuts, and they will be program cuts," Mautino said. Finally, property owners throughout the state will trade a tad deduction for a rebate check from the state. That’s a provision suburban legislators insisted on, Mautino said, and it will cost an anticipated $750 million per year. That’s a .25 percent income tax increase, and that will be permanent.

So in four years, the income tax would drop to 3.75 percent, and in 14 years, to 3.25 percent. "It goes away and it will take another vote of the General Assembly to institute another tax increase," Mautino said. The plan comes with restrictions on legislative action and a promise to the state’s taxpayers. There is a moratorium on new programs, and a spending cap that includes an escape hatch for taxpayers.

Details still were being ironed out late Monday. Mautino expected the cap would be set at 1 percent to 2 percent annual increases in spending, less than the expected 2.8 percent growth in the economy. The General Assembly can pass a budget that exceeds that cap, but it’s not going very far. If the budget exceeds that cap, the state’s Auditor General informs the General Assembly they have 45 days to bring it in line. Failing that, the governor then has 15 days to do so.

If, within 60 days of passage, the budget has not been corrected, all the tax increases will end immediately and it’s back to 3 percent. But local residents aren’t convinced the plan is good for Illinois — or their pocketbooks. Gary Gearhart, a La Salle Republican, vehemently denounced the corporate and personal income tax increases as misguided moves that will do more harm than good.

"We’re just going backwards," Gearhart said, calling for budget cuts instead of revenue increases. "Somebody better understand what the word ‘cut’ means. Their response is just to dip into the taxpayers’ pockets for more money. I just think this is taking the state in the wrong direction." If an income tax increase was greeted with disdain, the tax hike on cheap cigarettes was met with outrage. The measure is expected to raise $375 million, which would be funneled into education.

Marcus William of La Salle said it was "my choice to kill myself slowly" and that he’d start rolling his own cheap smokes before he plunked down an additional $1 a pack. "It’s a bunch of malarkey," he said. "We’re taxed enough as it is." Bob Harmon of La Salle said he planned to quit smoking rather than pay an elevated price per pack. This latest tax hike, he said, was the last straw.

"Right now it’s over $5 a pack and I can remember when they were 50 cents a pack out of the machine," Harmon said. "I’m going to have to quit. I can’t afford it." Doug Lenski, a convenience store employee in La Salle, also was unhappy but more resigned to the budget maneuvering. "It’s definitely going to be a hit in the wallet," he said, "but I’ll probably keep smoking."

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