This is in response to “Quinn’s gift to underworld” (Perspective, April 29), by Patrick Fleenor, chief economist of Fiscal Economics Inc. and author of “Cigarette Taxes, Black Markets and Crime,” which shifts the narrative of the proposed $1-per-pack increase in the state cigarette tax. While the tax is being proposed as one tool to help save and reform Illinois’ Medicaid program, Fleenor argues that taxing cigarettes leads to crime and corruption associated with cigarette smuggling. Instead, he calls for a broad-based tax such as an income, property or sales tax increase.
His argument misses a few key points.
Here is the real context for this proposal: Tobacco-related diseases cost the state Medicaid program more than $1.5 billion every year, which is more than half of the state’s current $2.7 billion Medicaid shortfall. A variety of serious and costly health problems associated with smoking account for a significant portion of Medicaid dollars. All Illinois taxpayers pay for a cost generated by the “relatively small, low-income subset of the population” that Fleenor references.
Asking every Illinois resident to pay more taxes on income, property and everyday necessities in this fragile economy is not the answer. Cigarettes are not a necessity; they increase the risk for heart disease, stroke, cancer and many other illnesses for those who smoke and the people around them, who are exposed to secondhand smoke.
Increasing the cigarette tax will bring in $337 million in sustainable revenue annually. If passed this year, the revenue would be doubled by a federal match to almost $700 million. At the same time, decreases in smoking-related Medicaid costs will be generated by those who quit or never start the habit because of the rising cost.
As for bootlegging and tax evasion? Harsher penalties and very visible crackdowns are exactly the types of measures to make illegal cigarette sales much more difficult. When the state is facing such dire financial straits, tougher enforcement of laws that bring in revenue should be a top priority.
Certainly no one wants to see an increase in cigarette tax-related crime. However, the biggest crime of all would be to allow this deadly product to be sold cheap while health care is out of reach for so many.
— Kathleen L. Grady, chair, American Heart Association Illinois Advocacy Committee , Chicago
