Chicago Tobacco Tax: Impact on Black Market Sales and Violence

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## Introduction

Chicago is no stranger to the debate surrounding the tobacco tax and its potential consequences. The recent proposal by Mayor Rahm Emanuel to increase the tobacco tax has sparked controversy, particularly among aldermen from the South and West Sides who argue that it will lead to an increase in black-market sales and violence. In this article, we will delve into the arguments presented by both sides and explore the potential ramifications of such a tax hike.

The Proposed Tobacco Tax Hike

The mayor’s plan aims to set a minimum price on a pack of cigarettes at $11.50, add taxes on little and larger cigars, impose taxes on smokeless tobacco and roll-your-own tobacco. The revenue generated from this tax increase would be allocated towards various programs, including a new summer orientation program for Chicago Public Schools freshmen, smoking cessation programs, and a remedial program for at-risk eighth graders. However, opponents raise concerns about the effectiveness of tobacco taxes as a reliable revenue source, given the decline in tobacco use since the 1960s.

Opposition from South and West Side Aldermen

Aldermen from the South and West Sides express reservations about the potential consequences of the tobacco tax hike. They argue that it will exacerbate the problem of black-market sales, particularly the sale of loose cigarettes, commonly known as “loosies.” This underground market has been a long-standing issue in these neighborhoods, leading to turf wars and violence. Alderman Roderick Sawyer of the 6th Ward highlights the real-life consequences of such activities, urging city officials to witness the impact firsthand.

The Black Market and Violence

The concerns raised by Alderman Sawyer are not unfounded. Nationally, increases in tobacco taxes have been linked to both direct and indirect violence. In some cases, individuals involved in the black-market sale of cigarettes have engaged in criminal activities, resulting in tragic incidents. For instance, in 2008, an elderly couple was killed in a car crash involving a suspected cigarette smuggler, and in 2010, a murder-for-hire plot related to smuggled cigarettes came to light.

The Impact on Communities

It is crucial to consider the potential consequences of the tobacco tax hike on already disadvantaged communities. Higher taxes on tobacco products can create an environment conducive to the growth of black-market sales, further increasing crime rates and putting vulnerable individuals at risk. South and West Side aldermen argue that prioritizing programs for at-risk youth should not come at the expense of exacerbating neighborhood black markets and violence.

Alternative Solutions

Instead of relying solely on higher taxes, exploring alternative solutions to address tobacco use and its associated issues should be considered. Education and prevention programs, alongside targeted enforcement efforts, could help combat the sale of illegal cigarettes and reduce tobacco use. Additionally, providing economic opportunities and resources to disadvantaged communities may alleviate the need for individuals to resort to black-market activities.

The Role of Fines and Enforcement

While fines for selling illegal cigarettes have been proposed as a solution, their effectiveness in curbing violence and black-market sales remains questionable. Past experiences suggest that fines alone may not be sufficient. Therefore, a comprehensive approach that includes robust enforcement measures, community engagement, and support for alternative economic activities is essential. price of cigarettes in chicago

Balancing Revenue and Public Health

Finding a balance between generating revenue and promoting public health is a delicate task. While tobacco taxes can serve as a source of funding for valuable programs, it is crucial to assess their potential unintended consequences. The revenue generated may not be sustainable, and the negative impact on communities, particularly those already grappling with crime and socioeconomic challenges, must be taken into account. price of cigarettes in chicago

Conclusion

The proposed tobacco tax hike in Chicago has raised concerns about its impact on black-market sales and violence, particularly in the South and West Side neighborhoods. While the intention to fund programs for at-risk youth is commendable, it is essential to consider alternative solutions that address the root causes of tobacco use and illicit sales. Balancing revenue generation and public health should be a priority, ensuring that any tax policies do not inadvertently harm already marginalized communities. By adopting a comprehensive approach that combines education, prevention, enforcement, and economic development, Chicago can strive for a healthier future while minimizing the risks associated with the black market and violence. price of cigarettes in chicago