Chicago’s mayor proposes massive tax increase on spirits

Illinoisans are well aware that enjoying a cocktail in Chicago is usually a pricey venture, but if the mayor has his way, it could get worse.

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.