Chicago City Wire

Chicago Mayor Brandon Johnson has proposed a 34% tax hike on distilled spirits as part of a new budget proposal aimed at boosting city revenues. The Distilled Spirits Council of the United States (DISCUS) swiftly criticized the proposal, warning that it would harm the city’s struggling hospitality industry.

According to a press release, Andy Deloney, Senior Vice President and Head of State Government Relations at DISCUS, stated that the proposal would drive consumers away, especially given that Chicago's alcohol taxes are already higher than those in neighboring areas.

“The hospitality industry has been relentlessly hit with economic challenges over the last four years, starting with the pandemic and followed by supply chain disruptions, staffing shortages, and record inflation,” Deloney said. “Chicago alcohol taxes are already drastically higher than any of the surrounding areas, and increasing them by another 34% will drive consumers away. This proposal is misguided because the loss in alcohol sales also means a loss in sales tax revenue completely negating the mayor’s goal.”

The hospitality sector in Chicago has faced substantial economic challenges since the pandemic, including inflation and staffing issues, which industry leaders argue have left them especially vulnerable to new taxes. 

The Distilled Spirits Council of the United States (DISCUS) is a national trade association that represents leading producers and marketers of distilled spirits in the U.S. Formed in 1973 through the merger of the Bourbon Institute, the Distilled Spirits Institute, and Licensed Beverage Industries, Inc., DISCUS serves as the industry’s voice on policy and legislative issues at federal, state, and international levels.

The organization advocates for industry interests, addressing regulatory challenges, taxation, and public policies affecting distilled spirits. DISCUS also promotes industry heritage and tourism through initiatives like the American Whiskey Trail and Destination Distillery, which connects visitors with over 2,000 distilleries across the country.