Tobacco Taxes
Illinois's excise tax per pack of cigarettes: $0.980
Illinois's excise tax collection for the
fiscal year ending June 2002: $471,551,000
Sales tax on tobacco products: 6.25%
Local tax on tobacco products: $60,605,152
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
Comparing Excise Taxes on Cigarettes, Beer and Wine
Number of six-packs of beer that must be sold in Illinois to produce the same state excise tax revenue generated by one carton of cigarettes: 94.2
Number of bottles of wine that must be sold in Illinois to produce the same state excise tax revenue generated by one carton of cigarettes: 67.8
Illinois Smokers' Contributions to the State Economy - FY2003
In 2003, Illinois smokers comprised only 23.4% of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes $ 744,402,000
Smokers Pay Sales Taxes $ 94,252,000
Smokers Pay Local Excise Taxes $ 189,078,000
Smokers Pay Tobacco Settlement Payments $ 288,800,000
$1,316,532,000
Smokers' Economic/Tax Profile 2003
Income
Illinois smokers' median household income $37,156
Illinois nonsmokers' median household income $45,737
Working families pay more
32% of Illinois smokers had household incomes LESS THAN $25,000
17% of Illinois smokers had household incomes EQUAL TO or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
Smoker excise tax/sales tax/tobacco settlement payments liability in FY2004
Total average paid per Illinois smoker in excise and sales taxes $479
Cost per Illinois smoker for settlement payments to Illinois $134
Total annual payments to Illinois per smoker $613
Total annual payments to Illinois per nonsmoker $0
But But But But Blagojevich said that Tax increases on cigs were going to curb the smoking...that that that raising the taxes would be a deterrant to smokers........He never intended those revenues to be there at all because his real goal was to stem the tide of increasing numbers of smokers.....
< /Sarcasm >
But this money does not go to the village. How would this be part of their consideration?
When National Prohibition kicked in, the City of Chicago lost 25% of its yearly revenue of $32 mil when they lost the $1,000 saloon license fees (8,000 saloons). They petitioned Congress at least twice to allow "light beers and wines."
History repeats.