While human service professionals gear up to protect their jobs in the realm of the tentative Illinois budget, businesses aren't taking plans to increase taxes lying down. Take the American Beverage Institute which is lobbying to stop the increase in liquor taxes in order to stem the tide of red ink overtaking state government.
The Legislature has decided to add nearly three cents in additional taxes to the price of a six-pack of beer, 13 cents on a of bottle wine and 80 cents on a fifth of the hard stuff. The liquor tax hike, lobbyists say, would put a strain on distillers and sellers, while putting an additional 4,500 people on the state's unemployment rolls. That's on top of the nearly 20,000 jobs the hospitality industry says it's lost because of the recession.
Let's see, tax booze or tax constituents. If you were a lawmaker, how would you vote? Duh! Especially since the tax hike is estimated to generate nearly $115 million annually.
But here's the argument the liquor industry is really hammering as the still tax awaits Gov. Pat Quinn's signature: Raising the price of a drink hurts low-income taxpayers the hardest. They say one-third of the booze in the state is consumed by Illinoisans with incomes under $50,000 a year. Guess the rich are different than you and The Hound, after all.
There's only one answer to creeping alcohol taxes: The advent of backyard stills and the proliferation of moonshine sales across Illinois. Pass the corn licker, Snuffy!
The interesting thing about revenue projections is that politicians and bureaucrats prove that they were asleep throughout their basic economics classes in school. They always think that demand will be the same no matter if the tax is one cent or one hundred dollars. They also believe that there will be no blackmarket or alternative means of supply. People are kinda funny...They think that if they are being ripped off they won't bother buying, or will go somewhere else to get what they need. With ever decreasing numbers of smokers, the State realizes that it needs more tobacco revenue. With fewer drivers violating traffic laws, the politicians suddenly find out that they need to expand their red light cameras. Maybe if they really, really look hard...they might find some things to spend less on, rather than find 'easy' ways to soak different groups of taxpayers....NAH!!
THE HOUND SAYS: Hermie is a man after The Hound's own paws. Spend less? Surely, you jest, sir. That's the problem with Illinois pols. They don't know how to say "no" to all the special-interest groups, whether they be sectors of industry seeking protection or consumer groups or social service professionals. With the jockeying already beginning for next year's elections, watch what is happening now.