Chicago Retail, Beverage, and Hospitality Leaders Call on City Council to Oppose Alcohol Sales Tax Hike

Lawndale News Chicago's Bilingual Newspaper - Business

Retail, hospitality, beverage, union, and business leaders across the city are calling on the Chicago City Council to reject a new proposal that would increase sales taxes on retail alcohol sales by 29%. Chicagoans already pay some of the highest alcohol taxes in the nation, and this additional tax would further drive-up prices for consumers at a time when working families can least afford it. Taxes on beverages are regressive, disproportionately affecting low-income Chicagoans and small businesses. This new tax would hit every Chicagoan who buys beer, wine, or distilled spirits at their neighborhood store. It would come on top of existing federal excise taxes, state liquor taxes, and Cook County and Chicago alcohol taxes, while bringing the city’s existing 10.25% sales tax to 13.25%. The Chicago alcohol tax coalition includes restaurants, bars, retail establishments, beer, wine, and spirits suppliers and distributors, and labor and business leaders in all 50 wards. From small brewers and distillers to major employers – the broad coalition is warning the city council that this hike will increase prices for working families, cost local jobs, and threaten an industry still struggling to recover from the COVID-19 pandemic.

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