Users of bars and restaurants in the US city of Chicago have warned that the proposed 35 % increase in wine taxes could ruin their companies. The tax increase, part of Johnson’s$ 17.3 billion 2025 budget plan, aims to raise$ 10.6 million annually, bringing total alcohol tax revenue to$ 40.6 million.
The problem is harsh, claim industry leaders. ” We’ve done our part for the state’s coffers”, said Pat Doerr, chairman of the Hospitality Business Association of Chicago, during a news conference at Haymarket Brewery, as quoted by Chicago Tribune. ” This increase is ridiculous and will harm businesses already strained by previous revenue hikes, COVID-19 healing, and inflation”.
Under the plan, taxes on liquor with more than 20 % alcohol by volume ( ABV ) would rise from$ 2.68 to$ 3.62 per gallon, while beer taxes would increase from 29 cents to 39 cents per gallon. According to a report from the Chicago Tribune, critics claim that the higher prices will not only affect businesses but also cause people in border neighborhoods to buy in affluent areas for less alcohol.
The taxes, according to industry leaders, is especially harmful for small-scale local businesses like breweries, which are particularly affected by it. ” Beer is a level game, and a tax climb would definitely prevent that improvement”, said Damon Patton, co-founder of Moor’s Brewing Company, as quoted by the Chicago Tribune.
Johnson is facing more substantial budget obstacles as a result. His proposed$ 300 million property taxes increase was recently rejected by the City Council, and his proposed cuts to police posts tied to notice order reforms have received criticism. Johnson contends that working together is crucial to addressing the city’s economic crisis.
Johnson has emphasized that everyone involved in the city government’s budget process may help. ” My duty is to provide a expenditure that’s balanced. Working with the City Council to actually move that resources requires me to be as collaborator-in-chief”, he said on Tuesday.
However, business opponents are urging aldermen to resist the wine tax, warning that it could hurt small businesses without addressing 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 does n’t understand the real world”.
As the funds conversation continues, Chicago’s hospitality industry remains determined to fight the proposed tax climb, urging City Hall to investigate alternative revenue sources.
