Alcohol

C. Jarrett Dieterle | 11.16.2024 7:00 AM

With Chicago facing an expected budget shortfall of nearly $1 billion next year, Mayor Brandon Johnson has unveiled his proposed 2025 budget. The plan not only reneges on the progressive's campaign pledge to not raise property taxes but also includes a steep hike on alcohol taxes.

Independent liquor stores will bear the brunt of Johnson's liquor tax. These small businesses are primarily immigrant-owned and are located in predominantly minority-populated neighborhoods of the Windy City. At the same time, Chicago continues to indulge in a decades-long spending spree that prioritizes everything from teacher pensions and art classes to fancy government office renovations.

Chicago's financial woes are no secret at this point, and the mayor's $17.3 billion proposed budget still includes a $982 million deficit. Johnson sought to fill the gap with a now-failed $300 million property tax hike alongside other "revenue enhancements" (a government euphemism for "we are raising your taxes"). Included in the dizzying array of budgetary numbers is a proposed ordinance to raise certain alcohol taxes by 34 percent.

Taxing alcohol has proven to be a popular idea among politicians as it often draws less scrutiny than income or property tax hikes. Therefore, it can act as a sort of backdoor revenue generator—but also one that is........

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