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In addition to walking back on a campaign promise not to raise
property taxes, Chicago Mayor Brandon Johnson is also proposing
a sizable tax hike on alcohol.
Johnson wants to increase the wholesale transaction prices per
gallon of beer by 34%, and by about 35% for other spirits.
"Our budget reflects the commitment to invest in our people and
neighborhoods, ensuring that every Chicagoan has the opportunity
to thrive," Johnson said.
The Distilled Spirits Council of the United States slammed the
proposal, saying it would harm an already decimated hospitality
industry still reeling from the pandemic and followed by supply
chain disruptions, staffing shortages and record inflation.
“Adding a significant tax increase is not going to do anything
to help,” said DISCUS Senior Vice President and head of State
Public Policy Andy Deloney.
Deloney notes that Chicago alcohol taxes are already drastically
higher than any of the surrounding areas and increasing them by
another 34% will drive consumers away, thus negating the mayor’s
goal.
Currently, the tax on a gallon of distilled spirits in Illinois
is over $8, but in Chicago it is $13.73. In comparison, the tax
in Wisconsin is $3.25 and less than $3 in Indiana.
The Chicago City Council will conduct budget hearings for the
next two weeks. By law, the budget must be finalized by Dec. 31. |
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