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Illinois House approves higher cigarette tax
Updated: Friday, 25 May 2012, 6:17 PM EDT
Published : Friday, 25 May 2012, 6:17 PM EDT
SPRINGFIELD, Ill. (AP) - The Illinois House has agreed to raise tobacco taxes as part of a plan to strengthen the state Medicaid program.
The tax increase passed 60-52 Friday. It now goes to the Senate, which has backed similar increases in the past.
It more than doubles the tax on cigarettes, to $1.98 a pack. Other tobacco products would see a similar tax increase.
It also would create a special tax on hospitals that would then be matched by the federal government and returned to the state.
In all, it's supposed to raise $800 million a year for the Medicaid program.
Officials yesterday approved deep Medicaid cuts. The taxes and cuts are supposed to close a $2.7 billion hole in the Medicaid budget.
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