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Chicago Mayor Proposes Massive Spirit Tax Increase
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Chicago Mayor Proposes Massive Spirit Tax Increase

Illinoisans know all too well that enjoying a cocktail in Chicago is often an expensive undertaking, but if the mayor has his way, things could get worse.

In addition to backtracking on a campaign promise not to raise property taxes, Chicago Mayor Brandon Johnson is also proposing a significant increase in alcohol taxes.

Johnson wants to increase wholesale transaction prices per gallon for beer by 34% and about 35% for other spirits.

“Our budget reflects a commitment to investing in our people and neighborhoods, ensuring every Chicagoan has the opportunity to thrive,” Johnson said.

The Distilled Spirits Council of the United States criticized the proposal, saying it would hurt an already decimated hospitality industry still reeling from the pandemic and followed by supply chain disruptions, staff shortages and record inflation.

“Adding a significant tax increase won’t help anything,” said Andy Deloney, DISCUS senior vice president and head of State Public Policy.

Deloney points out that alcohol taxes in Chicago are already drastically higher than in any of the surrounding areas and raising them by another 34% will scare away consumers, thus defeating the mayor’s goal.

Currently, the tax on a gallon of distilled spirits in Illinois is more than $8, but in Chicago it is $13.73. By comparison, the tax in Wisconsin is $3.25 and less than $3 in Indiana.

The Chicago City Council will hold budget hearings over the next two weeks. By law, the budget must be finalized by December 31.