Sin Taxes and Their History of Missing Revenue Projections

Will more taxes and rosy revenue projections solve our fiscal mess?

David Godow has a fascinating piece over at the Reason Foundation reminding us of how sin taxes have a miserable track record of bringing in projected revenues. He even uses Chicago’s bottled water tax as an example. The city projected that the tax would bring in over $10.5 million but the tax did what it was supposed to do,Ai?? it discouraged people from buying bottled water, resulting in only $7.5 million in revenue for the state.

Ignoring this, and other examples, the Governor’s three year budget outline counts on revenue from bills not even passed, including a cigarette tax, which a study from the Mackinac Center shows would not bring in nearly the revenue the Governor’s office is projecting. The governor counts on $330 million in tax revenue from this yet to be passed cigarette tax, but the aforementioned Assignment Mackinac Center shows that the tax will only bring in $251 million due to smuggling. This should not be a surprise as only 16 of 57 cigarette tax increases across the country brought in their projected revenue. A cigarette tax hike would hurt businesses across the state, and increase the tax burden on hard working families, especially the poor and disadvantaged.Ai?? The Institute has done significant research Ios spy, Whatsapp spy. showing why cigarette tax increases are a bad choice for Illinois. Order lady era review

Despite the fact that passing the largest tax hike in history has failed to even come close to balancing the budget, elected officials still refuse to accept that out of control spending is the problem. Rather then making cuts to unsustainable government spending, the Governor is looking to increase taxes again, a mere five weeks after punishing families with a 67% tax increase. More taxes and rosy revenue projections will not solve our budget crisis.Ai?? In the coming weeks, the Illinois Policy Institute will be rolling out a comprehensive fiscal agenda, including a line by line balanced budget, that will turn Illinois away from the destructive tax and spend policies of the past and towards a brighter future. 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