Research

A Significant Cigarette Tax Rate Increase In Illinois Would Produce A Large, Sustained Increase In State Tobacco Tax Revenues

State cigarette and other tobacco tax revenues are among the most predictable, steady, and reliable revenues that states receive. While these revenues do decline gradually over time as smoking and other tobacco use declines, the reductions in revenue are modest, predictable, and more than offset by the related reductions in public and private sector health care costs and other economic costs caused by smoking.

This paper explores how Illinois could use increases in cigarette tax rates to reduce smoking, improve population health, and save money.