View as PDF Chicago—On Monday Chicago Mayor Rahm Emanuel’s (D) latest package of tobacco tax hike proposals were stalled after more than three hours of testimony by supporters and opponents before the City Council Finance Committee. Challenges to the tax increases were heard from small business owners, tobacco and cigar associations, and Taxpayers United of America (TUA).
“TUA opposes any and all new taxes on cigarettes, cigars, e-vapors, and other tobacco and related products,” says Jared Labell, TUA’s director of operations. “Higher taxes on tobacco and similar products will simply grow the black market for illicit production and smuggling outside of the scope of the government, just as we have witnessed with the history of prohibition and government intervention in the market. These proposed tax increases are bad for businesses, consumers, and taxpayers who are tired of Nanny State bureaucrats and their incessant proclamations.”
The proposals up for debate before the Chicago City Council included raising the legal age to buy tobacco products in the city to 21, a 15-cent tax per unit in small cigar packs, increasing the cost of a 20-pack of “little cigars” of various brands by $3, and a 90-cent tax on larger individual cigars. Mayor Emanuel also wanted an additional $1.80 tax per ounce of smokeless tobacco and a $6.60 per-ounce tax on roll-your-own tobacco. This is all in addition to Mayor Emanuel’s budget for 2016, which already includes tax increases on electronic cigarettes, plus the 50-cent per pack tax on cigarettes enacted in the 2014 budget.
“An increase in taxes on these products also presupposes that projected revenue will surge to help subsidize whatever pet project politicians claim they want to fund with these tax dollars ‘for the children.’ But in reality, between alternative products, changes in consumer demand, options outside Chicago’s city limits, and black market activity, governments tend to see a drop in revenue when using tax policy to shape public behavior.”
“Chicago’s combined federal, state, and local per pack tax on cigarettes is currently $7.17 – the highest in the United States. Proponents of higher tobacco taxes claim this is a health issue, arguing that raising taxes will reduce consumption, yet these same advocates make the case that higher taxes on tobacco and related products are necessary to generate revenue from taxpayers to fund programs – which is logic that can only come from the minds of government officials,” said Labell.
“Both government intervention in trade and the manipulation of tax policy to alter the behavior of the public always have a multitude of unintended consequences, and we will see them in droves if the City Council attempts to pass these measures again.”
“These politically motivated tax hikes will impact businesses, consumers, and average folks trying to make a living – and in only negative ways. Public health is indeed an important issue, but draining taxpayers of more of their hard-earned money, hurting businesses financially, and dragging down Chicago’s already sluggish economy is no way to assist the public in the long-term,” concluded Labell.
TUA president and founder, Jim Tobin, was quoted by Premier Broadcasting about Tax Accountability, Taxpayers United of America’s political action arm, endorsing State Senator Kyle McCarter for Congress.
State Senator and candidate for Congress Kyle McCarter secured another endorsement of his 2016 campaign to restore America’s promise through reform and a return to the nation’ founding principles.
In its endorsement of Senator McCarter, Taxpayers United of America’s political action arm – Tax Accountability – drew attention to McCarter’s record defending taxpayers.
“Kyle’s record in office has proven that he is a true champion of Illinois taxpayers, having recently received the highest pro-taxpayer rating in the thirty-two years we’ve conducted our biennial tax survey of the Illinois General Assembly.”
“The tax burden for Americans is on the rise as establishment politicians of both parties grow government beyond our ability to pay for it,” said McCarter. “Higher taxes take money away from families to care for themselves, to pay for college and save for the future. Our employers are dealing with the highest corporate tax rate among the industrialized nations in the world. That makes it harder to compete in the global economy and it means fewer opportunities to expand businesses in America and employ Americans.”
Tax Accountability said McCarter is committed to holding the line on taxes and has signed the Tax Accountability Taxpayer Protection Pledge to support economic freedom by working to decrease the overall tax burden of taxpayers.
In his endorsement of Kyle McCarter, Taxpayers United Founder and President Jim Tobin wrote: “I urge voters to support Kyle’s candidacy and help send a tax fighter to the United States House of Representatives.”
Illinois’ 15th Congressional District is comprised of all or parts of 32 counties: Bond, Clark, Clay, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards, Effingham, Fayette, Ford, Gallatin, Hamilton, Hardin, Jasper, Johnson, Lawrence, Madison, Marion, Moultrie, Pope, Richland, Saline, Shelby, Vermillion, Wabash, Washington, Wayne and White.
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CHICAGO—The financially troubled Chicago Public Schools (CPS) should lay-off scores of teachers and significantly increase class size to save money, according to the presi
dent of one of the nation’s largest taxpayer organizations.
“Study after study has established that there is no appreciable correlation between class size and academic achievement,” said Jim Tobin, President of Taxpayers United of America (TUA). CPS is on the brink of financial collapse, and its administrators need to bite the bullet and start laying-off teachers. The resulting larger class sizes will not affect academic performance and will save taxpayers millions of dollars. It is obscene to advocate raising property taxes once more on overburdened Chicago homeowners.”
Stanford economist Eric Hanushek’s study on class size is the gold standard on this topic. He looked at the best studies and found that 89% of the studies show either no statistically significant advantage or a significant negative effect to smaller classes.
A Cato Institute study reports that the average American classroom has gotten substantially smaller over the past 40 years (by about 7 students) but achievement at the end of high school is essentially flat . A Harvard study by researchers Antonio Wendland and Matthew Chingos reported in 2010 that Florida’s statewide class size reduction had “no discernible impact upon student achievement,” but has so far cost the state roughly $28 billion.
The Chicago Teacher’s Union (CTU) has been pushing for smaller class sizes, claiming that smaller class sizes will improve student achievement. According to the Illinois Policy Institute, the CTU even authored a report on the topic, asking the Chicago City Council to divert $170 million of the $351 million set aside for charter school expansion in 2012 toward reducing average class sizes from 28 to 20 students.
“This class-size myth is perpetuated by the union bosses and their legislative cronies to increase the number of union jobs for both teachers and laborers. It is a scam to extract even more taxpayer wealth from the pockets of the middle class,” added Tobin.
“Chicago homeowners can’t afford another property tax increase in order to swell teacher-union membership. It’s time to lay-off teachers and increase class size. This would be a significant step toward stabilizing CPS finances.”
