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Quinn Proposes $500 Million in New Taxes

Illinois Governor Pat Quinn is proposing $500 million in new state taxes. And they could affect everyone from smokers to people who download music.

Head to Daley Plaza if you want to gauge the potential impact of Quinn's latest budget proposals. Quinn's office says it's cut all it can from the state budget. So how about a 40 percent bump in tobacco taxes?

WARD: I mean it's just more money out of my pocket.

That was enough to stop Patrick Ward in the middle of his cigarette break.

WARD: I'm already taxed enough with everything else - you know, gas prices and all that other stuff.

Across the street, Damon Young wasn't smoking.

YOUNG: I don't smoke cigarettes, so I come out here to listen to music.

But Quinn's office says taxing the music downloaded to Young's MP3 could mean up to $10 million a year.

YOUNG: If it's only going on here, then what's that to say about someone else who's in Michigan somewhere who doesn't have to pay an iTunes tax?

To help close the $13 billion budget gap, Quinn's also proposing to borrow $5.7 billion, and push back the due date for state bills by four months.

State Republican leaders have opposed the new taxes, saying the state should cut its spending further.

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