Major alcohol tax hike may be on tap in Illinois
UPDATE, 2:55 p.m. : William Olson, lobbyist for the Associated Beer Distributors of Illinois, counters that the tax won’t raise as much money as proponents claim, because some people will drink less as a result, and others will cross state borders into Missouri and other neighboring states to buy their booze. “It won’t be a real solution” to the state’s budget problems, he maintains.
SPRINGFIELD, Ill. - Bellying up to the bar in Illinois could soon mean ponying up more money.
A group of state lawmakers today is proposing a significant tax hike in the price of all forms of alcohol, raising some $254 million, with a big chunk of it earmarked to restore state cuts in substance abuse funding and the rest helping prop up the deficit-plagued state budget.
The plan is being touted as a “nickel-a-drink” proposal. What that means in real figures, according to the bill language, is more than doubling the current alcohol tax rates, bumping up beer by about 53 cents a gallon (it’s currently taxed at about 18 cents); wine up from the current 73 cents a gallon to $2.01; and spirits up from $4.50 a gallon to $8.77.
Of course, every legislative session sees some lawmakers pushing pet tax proposals that are doomed from the outset, but there’s been talk around the Capitol lately that this one (or something like it) might have a shot this year, with the state facing a budget deficit estimated at as much as $11 billion. In response, Gov. Pat Quinn is pushing for a major income tax hike, the state is likely to implement higher cigarette taxes, and there is serious talk of expanded gaming and targeted sales tax hikes. There’s also a rumored “doomsday budget” circulating among lawmakers to show what draconian cuts they will have to make in order to balance the budget without tax increases.
“This is on the table,” insisted the alcohol tax sponsor, state Rep. Sara Feigenholtz, D-Chicago, who touts it as both a money-raising tool and a way to thwart teen drinking. She said she has talked to legislative leaders about it, and found them “open minded” on the topic. “We believe this is going to be part of the final budget deal” expected by the end of May.
I’ve got a call in to the alcohol lobby to get their take. More soon.
Thanks IL, just keep sending all that business over to this side of the river. We’ll take as much as you got.
ILL has go to be one of the stupidest states I have ever seen, as well as corrupt. I cannot believe the residents there take this bs and don’t put their foot down.
Keep the taxes coming Dem’s. Sooner or later the public will have to rise up and vote you out. When they start taxing the air that you breath may, maybe, just maybe folks will wake up in Illinois. (If there is a state left)
I’ll be purchasing over in MO too if this crap gets passed.
How about cutting the amount of government and pet projects and close Mid America Airport? Make the gambling limits be unlimited. Legalize marijuana. Make laws be that if you use, you pay. If you don’t use, you don’t pay.
Our country is becoming more socialist by the day all in the name of the “greater good” according to someone else. We must help the poor, pay for education for those who can’t afford it, provide welfare for those who can’t or won’t work, and give free Medicaid to those who can’t or won’t pay for their medical care. There was no major difference between Obama and McCain as they are both from the ruling Democrat and Republican duopoly.
Yep, just keep upping those taxes guys and I’ll just keep going to Missouri for my alcohol, like I do for gasoline. You’re going to lose a lot more than you expect to gain. For those cities more inland, you will be paying these taxes, not those of us in border cities.
Way to thwart teen drinking? That sentence is nothing but a throw-in by Sara Feigenholtz to help justify the real reason this is being considered, which is “a money-raising tool”.
I could care less that they increase the alcohol tax, but don’t try to mask it in some fairy tale shroud like fighting teen drinking. What a crock…
this tax stuff just doesn’t stop. When is it too much? they just keep looking for new taxes for everything. i agree with the earlier post…how about cutting spending and let us have our money to spend.
‘a wat to thwart teen drinking’….riiiiiight.
Heard a tease on the news the other day but didn’t have time to watch, but the tease said lawmakers somewhere were wanting to place a tax on soft drinks. Doesn’t surprise me in the least. They will soon go after fast food restaurants, prepackaged and preparded food in supermarkets and so on.
I say stop rewarding unwed mothers from having children they can’t support. That could save millions each year. Have more than one and instead of increased welfare, food stamps etc they decrease the amount by each additional child. I bet you would be amazed how quickly this uncontrolled breeding would stop.