Beer Institute Opposes Proposed 34% Beer Tax Hike in Chicago
WASHINGTON — Earlier this week, Chicago Mayor Brandon Johnson released his proposed budget, which includes a massive 34% excise tax hike on the sale of beer for Chicagoans. The Beer Institute, on behalf of brewers, beer importers and industry suppliers across the country, strongly opposes this proposal.
The beer industry is an important economic contributor throughout the state of Illinois, employing more than 94,000 residents and contributing more than $17 billion to the economy. Chicago’s retail and hospitality industries are important drivers of local jobs and economic growth. The Beer Institute estimates that approximately 45.765 million gallons of beer were sold by all retailers (on- and off-premise) in 2023 in the City of Chicago, generating approximately $13.271 million in tax revenue.
In response to the proposed tax hike, Beer Institute President and CEO Brian Crawford released the following statement:
If this proposal passes, Chicagoans, local retailers and hospitality businesses city-wide will bear the brunt of this regressive tax proposal. Prices will, as a result, increase for Chicagoans – leading to a decrease of retail sales and ultimately a decrease in expected revenue for the City. Chicago will see consumers travel to neighboring localities to make their purchases or may choose to forgo local purchases altogether. A 34% tax increase on the sale of beer will ultimately saddle beverage manufacturers with an unexpected loss of sales that could result in brewers cutting jobs, reducing production, or halting expansion efforts.
“The beer industry is essential to Chicago’s economy and identity. We are proud to serve our brewers’ products to residents and visitors across the city. The Beer Institute vehemently opposes a 34% tax increase on the sale of beer which will only increase inflationary pressures on consumers, retailers and manufacturers. We urge Mayor Johnson and Members of the City Council to take these points into consideration before instituting a tax hike of this nature.
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