Liquor sellers protest proposed Chicago tax
Tavern owners, restaurateurs, liquor store owners and supporters protested at Chicago City Hall on Wednesday against proposed added taxes on wine, beer and spirits.
About 100 people showed up to oppose a tax hike they say would amount to more than an 85 percent tax increase on alcohol in the past three years, according to the Chicago Hospitality Association, a nonprofit association for bars, restaurants and liquor establishments.
Among the tavern owners to testify before the City Council was Beth Murphy, owner of Murphy's Bleachers.
Should the added tax proposed by Mayor Richard Daley and city councilmen pass, Chicago will tax wine, beer and spirits more than any other major city in the nation, according to the hospitality association.
Carrying signs saying, "Don't scare away Chicago small business," the small businesses opposed to the raised taxes said a concoction of seven different taxes already means more than 40 percent of the price of beer, wine and spirits is attributable to taxes.
"The way smaller businesses are going to deal with it is to make no new hires and cutback on the part-timers," said Pat Doerr, managing director of the association. "All the border establishments expect a mass exodus if this passes … People already cross borders for cheaper gas."
Several aldermen on Wednesday proposed higher taxes than Mayor Daley proposed in early October, increasing city revenue from $13 million to $16.5 million in 2008.
The city tax on non-beer alcohol would increase 75 percent and on beer by 23 percent, according to Daley's office.
That amounts to 10 cents a six pack of beer, 4 to 11 cents on a bottle of wine and 37 cents on a liter of liquor, supporters said.
However, annual liquor licenses, restaurant licenses, city taxes, state taxes, county taxes and federal taxes add up to a burden for the mom-and-pop bar or restaurant, Doerr said.
On top of the raised taxes from Chicago, Doerr said he fears Cook County may raise its sales tax by 2 percent, too.
The full Chicago City Council held hearings on the issue much of Wednesday. The matter will go to the budget committee on Monday and is expected to be voted upon in two weeks, according to Daley's office.