DISTILLED SPIRITS COUNCIL URGES COOK COUNTY BOARD OF COMMISSIONERS TO REJECT ALCOHOL TAX HIKE IN BUDGET PROPOSAL

DISTILLED SPIRITS COUNCIL URGES COOK COUNTY BOARD OF COMMISSIONERS

TO REJECT ALCOHOL TAX HIKE IN BUDGET PROPOSAL

Chicago, IL – The Distilled Spirits Council today urged the Cook County Board of Commissioners to protect Chicago’s struggling hospitality industry by rejecting a job-killing alcohol tax increase in Board President Toni Preckwinkle’s proposed budget. 

“During these troubling times, policymakers need to protect hospitality workers and consumers, not punish them with higher taxes,” wrote Council Vice President Dale Szyndrowski, noting that the hard-hit Chicago hospitality industry is still down 13,000 jobs since the recession.  “The proposed tax increase will make spirits taxes in Chicago 85 percent higher than in New York City, and likely drive more business and tourists into surrounding counties and neighboring Indiana.” 

Szyndrowski also pointed out that a restaurant patron already pays a staggering eight different direct taxes each time he or she purchases a drink:  Federal Excise Tax ($13.50/proof gallon), State Excise Tax ($8.55/gallon), County Excise Tax ($2.00/gallon), City Excise Tax ($2.68/gallon), State Sales Tax (6.25%), County Sales Tax (1.25%), City Sales Tax (1.25%) and Transport Tax (1.00%).  In total, he said, nearly 60% of the price of a bottle of spirits at the local liquor store already goes to taxes.

“By any measure, Cook County consumers are already paying more than their fair share in alcohol taxes,” Szyndrowski said.  He further noted that Cook County’s proposed alcohol tax would mark the fourth alcohol tax hike on Chicagoans since 2005, including a state excise tax increase in 2009 that nearly doubled taxes on distilled spirits.

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To receive a copy of the full letter, please contact Ben Jenkins: bjenkins@discus.org.  Economic analysis on tax increase proposal attached.

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