soda tax

flickr/b0r0da

A potential framework for a balanced state budget relies on both cuts, and bringing in more money to state coffers. That does include an income tax hike. But there are other revenue ideas too.

Legislators who've been unable to reach a budget deal since last July have about two weeks left to agree on a new plan, or risk taking the state into a new phase of uncertainty and political gamesmanship.

Income tax space on a Monopoly game board
StockMonkeys.com

Commentary — Let’s be blunt: Illinois needs higher taxes.

That statement might come as a shock to citizens under the illusion that all would be well, if state leaders would just cut all the wasteful spending out of the state budget. 

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A Chicago alderman has proposed a penny per ounce tax on sugary drinks in that city.  There is also an effort to make that happen statewide.

flickr/ Jannes Pockele

Americans' love affair with sweets is well known.  It also contributes to health problems like obesity, diabetes and even heart disease.  And where do most people get sugar in their diet?  From sweetened beverages, such as soda.  

That's led some health advocates to push for ways to reduce consumption.  In Illinois, a plan for a penny per ounce tax on the drinks came up last year.  However, it got a cool reception from lawmakers.  

 

flickr/DCJohn

An Illinois House committee has rejected a proposed tax on sweetened drinks that supporters say would help fight obesity.  

The House Revenue and Finance Committee defeated the so-called ``soda tax'' Tuesday. It would have added a tax of 1 cent per ounce to any sweetened beverage.  

Rep. Robyn Gabel is an Evanston Democrat. The Chicago Sun-Times reports Gabel told legislators the tax would give people an incentive to choose a healthier drink. It also would generate an estimated $600 million in annual revenue.  

Courtesy of ILGA.gov

  Illinois already has so-called 'sin taxes' on alcohol, tobacco and gambling. Now lawmakers are trying to add sugary drinks to that list. The proposal faces an uphill battle in Springfield.

Sin taxes have a dual purpose: deterring people from what's regarded as undesirable behavior, and generating extra tax money.

In this case, lawmakers want to charge a penny per ounce of sugar-sweetened drinks like soda.

They say it would generate 600 million dollars in revenue. Half the money would go to the state's healthcare program for the poor.