CHICAGO — A group of restaurant and tavern owners on Wednesday came together to urge City Council to reject a proposal that would hike the city’s tax on liquor for the first time in nearly two decades, arguing it would be detrimental to small businesses.
Under Mayor Brandon Johnson’s proposal, the tax on sale of liquor that is 20 percent or more alcohol by the volume would increase to $3.62 cents a gallon, up from $2.68. The tax on beer sales would climb ten cents to 39 cents. The proposed hike comes as Johnson and alders work to balance a staggering deficit in the 2025 budget. Refusing to order layoffs and furloughs, the mayor has proposed a series of tax increases and fee hikes.
But bar and restaurant groups say they’re barely getting by post-COVID.
“I feel like City Council doesn’t understand the real world,” said Mark Robertson with 2 Bears Tavern Group. “Every time prices go up, fewer consumers go through the door. … Customers who do come in are spending less. They’re trading down from the local craft beer that by nature costs more for Miller Lite.”
Pat Doerr with the Hospitality Business Association of Chicago said his industry is already disproportionately taxed when compared to the rest of the country and state.
“We’ve done our part and our lift,” he said. “We don’t need any more on us.”
Finding City Council members to support the increase has been difficult. Ald. Scott Waguespack (32nd Ward) attended a budget briefing with Johnson’s team last week and said he needs the administration to find more savings before he votes for a budget.
“We need better management. We need better leadership in this city,” he said. “It’s got to start with you, and it’s got to come with cuts and efficiencies that the ratings agencies and every taxpayer is looking for.”
The alderman brushed off Johnson’s Tuesday comments that some alders were “having tantrums” and only want to obstruct.
“Hogwash,” Waguespack said. “Look, a lot of us, we’re producing ideas and we’re saying this is what you need to do to run better government. Those of us with experience are saying this is how it should be done based on good government practices. That’s not something he can ignore.
As city leaders battle over the budget, S&P Global Ratings warned that it’s watching and may downgrade the city’s credit rating.
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