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Op-Ed: Why Illinois politicians are goofy
to put tax signs on gas pumps
By Brad Weisenstein | Illinois Policy Institute
“As of July 1, 2022, the State of Illinois has
graciously allowed you to keep the price of a fast-food meal. But on
Jan. 1, 2023, forget it. You’re welcome.”
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 A new crop of political signs is sprouting across Illinois, but
rather than decorating the roadsides, these are on gas pumps. They contain a lot
of legally-prescribed words, but here’s the gist: “Save 2.2 cents a gallon for
six months. Vote for J.B.”
Still, the content of the signs isn’t quite as important as the message being
delivered to Illinois’ gas station owners: “Push our campaign agenda, or we’ll
treat you like a criminal and fine you $500 per day.”
Some explanation is in order.
State lawmakers passed their record $46.5 billion budget April 9 – an
achievement for both size and the fact that even propped up with billions in
federal pandemic cash, Illinois is still projected to spend more than it takes
in for the 21st consecutive year. As state leaders touted their fiscal
responsibility, they also spread a little campaign cheer by including tax
rebates and delays that amount to $556 for the average Illinois family.
One of those “breaks” was a six-month delay in the next,
automatic gas tax hike worth 2.2 cents per gallon. Note: It is a delay, meaning
the tax hike scheduled for July 1, 2022, won’t hit until six months later and
will give drivers two tax hikes in 2023 as the delayed one is followed by the
regular one. The second bump in 2023 likely will be a whopper: 3.8 cents a
gallon, taking the tax up to 45.2 cents based on economists’ inflation
predictions.
So, the big election-year gift is not even a cut but a delay of
the upcoming hike of 2.2 cents for six months – until shortly after the
election.
This grand legislative achievement is worth trumpeting across Illinois, so
lawmakers decreed each gas pump should carry a sign, 4 inches by 8 inches, with
bold lettering reading as follows: “As of July 1, 2022, the State of Illinois
has suspended the inflation adjustment to the motor fuel tax through December
31, 2022. The price on this pump should reflect the suspension of the tax
increase.”
In fact, that message is so important that lawmakers threatened
$500-a-day fines to station owners who fail to herald state politicians’
largess. It would cost $65,000 to defy Gov. J.B. Pritzker between the start date
and the election.
Station owners were not amused.
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“This industry won’t be forced into offering free
election year advertising for the governor,” Josh Sharp, of the
Illinois Fuel and Retail Association, said. “Ordering businesses to
take part in speech that is compelled by the government under the
threat of fines and criminal penalties is unwise and
unconstitutional.”
Lawsuits are being discussed.
People are already upset over gas prices driven up by Russia’s
invasion of Ukraine, then Illinois makes matters worse with high gas
taxes averaging 78 cents a gallon and over $1 a gallon in Chicago.
You especially see the difference when Illinoisans cross the
Mississippi River to low-tax Missouri, where a gallon is nearly 70
cents cheaper.
“Politicians in Springfield, perhaps a few of them running
statewide, fear that they’re going to be the ones to wear the jacket
for high gas prices during the fall, and now they’re doing
everything they can to get their message out and let people know
about this so-called relief,” Sharp said.
Illinois was once No. 10 in the nation for gas taxes. Now it’s No.
2, because in 2019 legislators and Pritzker decided they wanted to
spend $45 billion on infrastructure (oink), and to do so needed to
double the state gas tax to 38 cents from 19 cents per gallon.
Lawmakers insulated themselves from responsibility for future gas
tax votes by automatically linking annual increases to inflation.
The current rate is 39.2 cents, which costs each driver $132 more
per year than before the tax was doubled. Which begs the question:
How much will the six-month delay save a driver?
$7.22.
A little honesty at the gas pump would dictate this sign: “As of
July 1, 2022, the State of Illinois has graciously allowed you to
keep the price of a fast-food meal. But on Jan. 1, 2023, forget it.
You’re welcome.”
Brad Weisenstein is the managing editor of the
Illinois Policy Institute.
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