Industry leaders argue that the burden is unfair. “We’ve done our part for the city’s coffers,” Pat Doerr, director of the Hospitality Business Association of Chicago, said during a news conference at Haymarket Brewery, as quoted by the Chicago Tribune. “This increase is unjustified and will hurt businesses already stressed by past tax hikes, the Covid-19 recovery and inflation.”
Under the plan, the tax on liquor with more than 20% alcohol by volume (ABV) would increase from $2.68 to $3.62 per gallon, while the beer tax would increase from 29 cents to 39 cents per gallon. As the Chicago Tribune reports, critics argue that the higher costs will not only hurt businesses but also force consumers from border areas to shop in the suburbs for cheaper alcohol.
Hospitality leaders claim the tax is especially harmful to local businesses with thin margins, such as breweries. “Beer is a volume game, and a Increase taxes It will definitely hinder progress,” Damon Patton, co-founder Moore’s Brewing CompanyCited by the Chicago Tribune.
The opposition comes amid broader budget challenges for Johnson. The City Council recently rejected its $300 million property tax increase, and critics have targeted its proposed cuts to police positions tied to the consent decree amendment. Johnson maintains that collaboration is essential to navigating the city’s fiscal crunch.
Johnson emphasized that all city government stakeholders must contribute to solving the challenging budget process. “My responsibility is to present a balanced budget. I need to be the associate-in-chief to work with the City Council to actually pass that budget,” he said Tuesday.
Still, industry advocates are lobbying aldermen to oppose the alcohol tax, warning that it could hurt small businesses without effectively closing the budget gap. Mark Robertson, co-owner of 2 Bears Taverns, described the plan as “death by a thousand cuts in a post-Covid world,” adding, “City council doesn’t understand the real world.”
As budget debate continues, Chicago’s hospitality sector is determined to fight the proposed tax hike, urging City Hall to find alternative sources of revenue.