House OKs cigarette tax hike

by Jenny Novac on May 25, 2012

On Friday the Illinois House declared about cigarette tax increase in order to evade even deeper cuts to health care for low-income people. Thus, smoking people would pay $1 more per cigarette pack.

The House has great while been the hindrance to higher cigarette duties, so the 60-52 vote is equated at the Capitol with passage. Now the bill goes to the Senate, where Democrats supported tobacco tax increase.

Cigarette Tax

Cigarette tax increase

Now, with the $1 increase, the state cigarette tax will reach $1.98. Accordingly, the price of a pack of cigarettes will be about $11 in Chicago.

Gov. Pat Quinn stated that this decision will ameliorate the people’s health and reduce the burden of smoking-related situation on Medicaid system, filling the $2.7 billion Medicaid lack and regulate the system for those people who need it.

The tobacco debate unfolded as House members doubted to make a move on Saturday on plans to remake government worker pensions.

Michael Madigan, House Speaker, expects to lower automatic compounded subsistence rate growth to save billions. In the course of an interview with the Illinois Channel website, Madigan presented a concept, which suggests a choice to public employees. They could choose a pension plan that would pay less to pensioners but assure state medical insurance access, or waste state medical insurance access and get yearly subsistence rate increases though next increases would not be involved in calculating their pension.

There are plans in question that would permit present pensioners to save their subsistence rate insurance by taking a lower subsistence rate increase. Those who persist accepting the 3 % amendments would have to find their own health insurance.

A regulation intended to increase the retiring age for state workers from 65 in the majority cases to 67 was excluded from negotiations. Also, Madigan is trying to pass a plan intended to demand local school districts universities to pay into state pension plans, something that could raise local estate taxes and tuitions fees.

Additionally, senators directed the House a regulation that would prompt local governments to cover expenses if it employs a former lawmaker for a short-run job with a high salary that at once lifts a state pension.

The cigarette tax increase had long been considered as a solution but at the same time disputable component of Illinois’ Medicaid program. According to the plan, the state would also charge little cigars in the same way as regular cigarettes. Taxes would affect roll-your-own cigarettes, and duties on other smoking products would increase by half.

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