Thursday, April 30, 2009

Lawmakers want another tax increase?!

Just two weeks after the largest ever cigarette tax increase went into effect, Illinois authorities consider another increase, this time in the state tax that would jump by $1 over two years in case it is approved.

William Sheridan has been the executive manager of 7 gas stations with convenience stores for almost 10 years. He said he remembers the times when sales of cigarettes exceeded 100,000 packs per month in one of his convenience stores. It was two years ago until Cook County administration imposed $2 sales tax kicked in three years ago. After the sales tax went into effect the store sells an average of 20.000 packs of cigarettes each month.

That was before the latest increase in the federal cigarette tax came into force making each pack 62 cents more expensive. Sheridan complained the sales went 15 percent down during last month in comparison to the same period last year.

However, it seems that Illinois lawmakers are still not satisfied. They are debating over another $1 state tax increase, despite the price of a pack of cigarette nears $9 in several Illinois cities.