A Steep Sin Tax?

2007_10_beertax.jpgGone largely unnoticed among the other notable tax increases proposed by His Elective Majesty to plug the gaping hole in his 2K8 budget is the whopping $13.1 million increase to the liquor tax. The proposed increase will add 8¢ to a six-pack of beer, 7¢ to a bottle of wine, and 24¢ to a liter of hard liquor.

Fittingly, this isn't sitting well with the beer wholesaler lobby. The Associated Beer Distributors of Illinois are calling for help in opposing an 87.5 percent increase in the beer excise tax. From their web alert:

Currently the highest costing ingredient in beer is taxes! The Chicago beer excise tax is 16 cents per gallon. The proposed increase would hike the tax to 30 cents per gallon, making Chicago beer one of the most heavily taxed beverages in the nation. If Mayor Daley's proposed beer tax were to pass, each case of beer would increase for (sic) 91 cents to $1.22 per case. The total tax on a barrel of beer would be $16.90, a full 114 percent higher that the average beer tax.

Given the choice of losing our home to an outrageous property tax increase or having to pay an extra thirty-one cents for a case of beer, the choice is simple. We'll just carry an extra dime or two in our pockets to make sure we can afford to buy beer. Considering ABDI's involvement in getting HB 429 signed into law, it's also simple to say that this is a case of the chickens coming home to roost. It's usually the haves who protest the loudest whenever taxes are increased. Maybe the ABDI can turn their considerable lobbying skills to convincing Mayor Daley to stop diverting our tax dollars to TIFs.

Cartoon via Friends of Americans for Tax Reform.

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Comments (8) [rss]

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How about not spending as much money buying parkland from your buddies.

I just wonder if some more indictments will come down around Daley.

It seems they have pretty much connected him to the mob.

I wonder if Daley will be indicted. And now Zell has control of the Tribune will they work harder on Daley and the Alderman. Maybe it's Zell's pay back.

Gone largely unnoticed among the other notable tax increases proposed by His Elective Majesty

Largely unnoticed by whom? Certainly not by the liquor distributor, liquor store, bar and restaurant owners. As for your flip remark about carrying an extra dime with you, have you heard the old saying about being nickeled and dimed to death? No matter the small amount, it's inappropriate to raise any tax by almost 100%. I owned a restaurant during the big liquor tax increase in the late 90s and trust me, those dimes add up fast.

These taxes are NOT victimless. The extra 8 cents here, 11 cents there, and 14 cents over there all add up.

Daley and Stroger are hurting the citizens of Chicago. These many, many small tax hikes add up to businesses, tourists, and patrons from the suburbs going SOMEWHERE ELSE. Consumers spend their money SOMEWHERE ELSE. Businesses create their jobs SOMEWHERE ELSE. That hurts job retention and job growth in Chicago and in Cook County. Businesses that are drained by these taxes either move elsewhere or downsize their growth plans in Chicago and in Cook County.

Every bit of media coverage helps. Kudos to Chicagoist for keeping us on our toes about these taxes.

Ever hear the one that if you put a frog in a pot of water and slowly turn up the heat it will die but when you put a frog in boiling water it jumps right out.

It's called getting nickeled and dimed to death. The pols just hope that these 5 and 10 cent raises go unnoticed and next thing you know you're spend hundreds more a year in taxes.

Get these crooks out of office. Quit voting for these people.

Dollar Bill Wirtz croaks & Daley wants to raise liquor taxes.
Co-incidence?
Only Dollar Bill was allowed to raise liquor prices, it took a federal judge to eliminate that.

I drink to forget I'm poor, now I will be poorer for drinking.

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