According to an economic analysis by the Distilled Spirits Council of the United States (DISCUS), Chicago Mayor Brandon Johnson’s proposal to increase alcohol taxes by more than 34% would cost 300 Chicagoans their jobs as a result of more than $25 million in lost alcohol retail sales.
A hearing was held on the mayor’s budget proposal today.
“As a Chicago-based distillery, we know firsthand how detrimental excessive taxation can be for our customers and our business,” said Sonat Birnecker Hart, president of Koval Distillery. “With more than half of our bottle sales already going towards a tax or fee of some kind, we simply can’t afford a 34% increase in taxes. Businesses like ours help make up the unique and exciting hospitality experiences so many come to Chicago to enjoy. We urge alderpersons to reject this harmful proposal.”
For a typical bottle of distilled spirits purchased in Chicago, nearly 56% of the retail cost already goes to pay a tax or fee of some kind.
“Chicago has the highest alcohol tax rate out of any of the surrounding areas,” said Andy Deloney, senior vice president and head of state government relations at DISCUS. “If this tax passes, Chicago’s alcohol tax would be more than double the average tax rate for similar cities. Consumers will undoubtedly feel this increase when checking out at their favorite restaurant, local bar or distillery. Many will stop dining out and shopping in Chicago altogether in favor of lower prices right outside the city limits.”
Raising the spirits excise tax would make the combined state, county and city spirits excise tax rate in Chicago 2.6 times as high as the average for similar cities.
