Faced with a $315 million budget shortfall, Cook County Board President Toni Preckwinkle has proposed serious changes to how county officials spend taxpayers’ money. She’s challenging the public employee union bosses to come to the negotiating table. She aims to utilize private sector contractors to keep costs low. These all are necessary and commendable steps. Less so are the tax increases she has proposed: hiking the vehicle tax, raising county taxes on beer, wine and liquor, and redefining certain tobacco products (like cigars and smokeless) so taxes could be levied on them.

Last Monday, the four Republican members of the county board signed off on increases and provided the necessary margin for passage in the finance committee. The package of fee and tax hikes will cost residents an astounding $51 million, even as taxpayers are still reeling from January’s state income tax hike.

Targeting politically incorrect products may seem easy, but that doesn’t make it right. When you buy a bottle of liquor in Chicago, you already pay eight taxes: a county sales tax of 1.25 percent, county excise tax of $2/gallon, city sales tax of 1.25 percent, city excise tax of $2.68/gallon, state excise tax of $8.55/gallon, state sales tax of 6.25 percent, federal excise tax of $13.50/proof gallon, and a transport tax of 1 percent. Add these all together and it turns out a whopping 58 percent of the average bottle cost goes to taxes and fees. One sip for Uncle Sam, one sip for you.

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Last week, Capitol Confidential reported that Cook County Board President Toni Preckwinkle is considering hiking taxes on non-cigarette tobacco products in an effort to bring in more revenue from tobacco users who have apparently rejected heavily-taxed cigarettes in favor of cheaper options such as rolling their own or using products such as snuff.

On Monday, it emerged the Cook County Board endorsed Preckwinkle’s tobacco tax proposal by a 10-7 vote.  The Cook County Board is set to take a final vote on the proposed budget on Friday.

Now, it is being reported that separate to this proposed tax hike, Chicago aldermen are looking at their own tobacco tax hike. From the Chicago Trubune:

Two aldermen looking for last-minute ways to head off painful budget cuts proposed by Mayor Rahm Emanuel floated the idea Wednesday of extending the city’s cigarette tax to other tobacco products.

Ald. Matthew O’Shea, 19th, and Leslie Hairston, 5th, brought up that option at a City Council meeting in an effort to soften spending cuts at city libraries, mental health clinics and the 911 center.

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Aldermen and administration officials weren’t sure how much new money could be raised by broadening the tobacco tax — as Cook County Board President Toni Preckwinkle plans to do so she can raise $12 million for the county next year.

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Five years after Cook County, Illinois, last hiked cigarette taxes, it has emerged that revenues from cigarette taxes have substantially declined, contributing to the county’s budget challenges.

In 2006, the county collected about $200 million in cigarette tax revenue, but that dropped to about $126 million last year.

The County reportedly faces about a $300 million budget gap heading into next year. Locals say the decline in cigarette tax revenue is not the result of smokers quitting using tobacco products.  According to Sheriff Tom Dart, “There’s probably some people who have given up smoking, but I don’t think that accounts for $74 million [less].”  Rather, it seems to be the result of smokers looking to save money on tobacco however they can — including buying from sellers who offer cigarettes without relevant tax stamps, buying cigarettes in neighboring Indiana, and even rolling their own or switching to non-cigarette types of tobacco.

Cook County Board President Toni Preckwinkle is now looking to raise taxes on tobacco users who take the latter routes in an effort to keep their costs down, as well as purchasers of alcohol:

Like it or not, Cook County Board President Toni Preckwinkle says her cash-strapped county needs higher taxes on alcohol and tobacco to solve a deep deficit.

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Preckwinkle also wants to close the loophole on the current cigarette tax to include loose tobacco, rolling papers and snuff.

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I first met up with Tom Tresser when I went to my first Olympics townhall event in the summer. Tresser lead the citizen activist group, No Games Chicago. They opposed the bid, as most have probably figured out. Tresser represented No Games, and their position, in the forum. Here’s how I described Tresser’s best argument that night:

Tresser, on at least five occasions, referred to Daley by the moniker corrupt. No one supporting the bid ever challenged this characterization. Instead, their defense was that the bid was a private non profit effort that is separate from the mayor’s office

The corruption in Chicago’s City Hall was the number one reason to oppose the Olympics coming to this city. While the Olympics aren’t going to be here, the corruption is a major reason, the corruption hasn’t gone away with it. In fact, it’s a part of daily political life in the city of Chicago, the County of Cook, and the state of Illinois in its entirety. (more…)