Booze tax a buzz kill
Happy Wednesday, Illinois. It looks like we’re finally getting something close to winter today.
TOP TALKER
FIRST IN PLAYBOOK: A group of restaurant, bar and hospitality leaders are pushing back at Mayor Brandon Johnson’s proposal to raise the alcohol tax in Chicago — pleading with City Council members to oppose it.
The group says raising the tax on beer, wine and spirits upwards of 34 percent would make Chicago’s alcohol tax rate one of the highest in the nation.
“Instead of helping families make ends meet, supporting workers and growing our small businesses, City Hall is trying to make it even harder to do business in the city of Chicago,” the Chicago Alcohol Tax Coalition said in a statement.
The big issue: Members of the group — from business and labor — worry that a tax hike in Chicago would push consumers to the suburbs to eat and drink. “The liquor tax will disproportionately affect neighborhood and community restaurants,” Sam Toia, CEO of the Illinois Restaurant Association, said in the same statement. He said costs of the proposed increase will be “passed directly to the consumer.”
Labor perspective: Pasquale Gianni, director of government affairs for Teamsters Joint Council 25 Counsel, said the proposed tax hike puts bar and restaurant jobs at risk because business would see a slowdown.
Putting it in starker terms: “The proposed Chicago liquor tax increase threatens to further burden an already strained hospitality industry, driving customers away and reducing revenue for local bars and restaurants,” said Keith Wetherell, executive director of the Illinois Licensed Beverage Association.
Others joining the opposition to a booze tax include the Illinois Retail Merchants Association, the Hospitality Business Association of Chicago, the Illinois National Independent Venue Association, the Illinois Craft Brewers Guild and the Distilled Spirits Council of the United States and the American Distilled Spirits Alliance.
In presenting the budget, the mayor’s office said the city hasn’t seen an increase in the alcohol tax in 16 years.
The proposed booze tax is just one piece of a proposal that Johnson hopes will help shore up a budget shortfall of nearly $1 billion.
They’re collaborating: The mayor and City Council members are deep in budget meetings this week after the council rejected the mayor’s proposed $300 million property tax hike.
From the mayor’s Q&A with reporters:
Johnson accuses critics of ‘tantrums,’ says it’s time they ‘grow up': “The mayor said last week’s unanimous vote against his $300 million property tax increase just delayed the budget process, dragging it well into December. ‘It’s time to grow up,’ Johnson said. ‘The people of Chicago don’t have time for that,’” by the Sun-Times’ Fran Spielman.
Johnson is now proposing a $150M property tax hike, down from his original $300M, by the Tribune’s Jake Sheridan
Mayor is also looking to find ‘more progressive revenue sources and more efficiencies’ to balance the budget, by ABC 7’s Craig Wall
THE BUZZ
THE CHICAGO MAYOR’s RACE is still more than two years out, but there’s already talk about who might jump in to challenge Mayor Brandon Johnson.
There’s buzz around Illinois Secretary of State Alexi Giannoulias after NBC 5 Mary Ann Ahern posted his name last night.
He can get in line: Others who might make a run for mayor include Congressman Mike Quigley, state Comptroller Susana Mendoza, state Rep. Kam Buckner, City Clerk Anna Valencia, City Council members Brian Hopkins (2nd), Silvana Tabares (23rd), Bill Conway (34th), Gil Villegas (36th) and Brendan Reilly (42nd), former Inspector General Joe Ferguson and former Chicago Public Schools CEO Janice Jackson.
One political observer even wondered aloud whether former Mayor Rahm Emanuel might join the race, given he won’t be helping out the White House.
Point being: It’s going to be a wild political ride.
If you are Janice Jackson, Playbook would like to hear from you! Email: skapos@politico.com