Eggnog tax: Illinois to make $2.5B from alcohol, other sin taxes
You might celebrate the holiday season by indulging in not-so-healthy habits. State lawmakers are encouragingly discouraging you for the sake of their budget.
There’s nothing wrong with indulging during the holidays if you don’t mind paying a little extra, and Illinois accommodates by adding extra taxes for “sinful” habits such as alcohol, cannabis, tobacco and gambling.
Sin tax revenue from alcohol, cigarettes, the lottery, cannabis, gaming and sports betting is projected to bring in $2.5 billion to state coffers, according to projections for fiscal year 2025.
Lawmakers are banking on Illinoisans partaking in some unhealthy habits, even though sin taxes are publicly touted as discouraging the behaviors.
New spending is lawmakers’ worst addiction, with close to an extra $2.3 billion in spending for the current, record state budget of $53.1 billion. But if sin taxes bring in more money, it means more bad habits. If everybody quit the not-so-good behavior, the state would lose money. The two goals conflict, so lawmakers can’t brag about both.
Lawmakers are hoping to get more out people’s unhealthy habits. Gov. J.B. Pritzker’s current budget raised the sports wagering tax. The tax increase is on gaming companies, not the winnings people take home. But if sports betting revenue for the state goes up, it means Illinoisans are losing more bets.
Illinois has also had legislation in Springfield to legalize online casino games, meaning someone could gamble without leaving their house or having to wait for a game or lottery drawing. They would have 24/7 access.