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Tax hike on booze, candy and soft drinks

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Chicago Tribune

In case you missed it, a tax hike on booze is just around the corner.

As part of the financing package for the state's $31 billion public works program, Illinois residents will be paying more for items including soft drinks and candy. A tax on booze could affect consumers indirectly because the fees liquor wholesalers pay for distilled spirits, wine and beer all are rising under the tax plan scheduled to go into effect Tuesday.



The tax on a fifth of vodka, whiskey and other distilled spirits distributed to retailers would jump 90 percent, from 90 cents to $1.71. The levy on a bottle of wine would leap about 87 percent from, 15 cents to 28 cents. The tax on a six-pack of beer would rise 25 percent, from 10.4 cents to 13 cents.

Officials say the money will pay for delayed repairs to roads, schools and bridges. A recently filed lawsuit challenging the legality of the funding package is unlikely to prevent the higher levies from going into effect. While the tax doesn't mean shoppers will pay more at the register, it could still have an effect on their wallets.

"There is nothing subtle or easy about this tax; it is simply a massive punch in the face," David Azizinamini, owner of Blue Line in Wicker Park, told Metromix in August. He figures the additional tax will add up to thousands over the next year. "The bottom line is that we will be forced to pass the costs on to our guests, which we do not want to do."

Greg Mohr, co-owner of The Fifty/50, is taking the wait-and-see-approach, intending to hold onto the bar's daily specials as long as possible. "We're going to ... just weather it and hope we can do more business to make up for the extra cost."

Other spots might dock their offerings in an attempt to recoup. "One option we are seriously considering is scaling back our options in alcohol and beer," says Steven Milford, co-owner of Wild Pug and Crew in Uptown, the latter of which stocks 68 kinds of beer. "With fewer options, we would go through more products quickly, earning us money back sooner."

REDEYE, METROMIX CONTRIBUTED.

Did you know ...

The 10.25 percent sales tax applied to general merchandise purchases in Chicago is one of the highest in the state, but it's not the highest.

That distinction belongs to the sales-tax levies in west suburban Bellwood, where 11.5 percent is added to sales in two specially designated business development districts and 10.5 percent is added in the rest of the town.

The sales-tax rate in northwest suburban East Dundee also tops out at 10.5 percent, but only in the part of the town that lies in Cook County. A portion of East Dundee is within Kane County, which unlike Cook does not levy a county sales tax, so the total rate there ranges from 8.5 percent to 9 percent depending on location.

To find out the total sales-tax rate in your community, see https://www.revenue.state.il.us/app/trii/

Bar tabs

Booze is just one of the items subject to the tax hike scheduled for Tuesday. RedEye hit the bars this weekend to ask drinkers what they think about it. Alexia Elejalde-Ruiz, REDEYE

Jordan Wilkow, 32, of Lincoln Park
"I think that there are things like booze that society can consider indulgences and it's OK to tax those a little more. Insofar as I think a sin tax is acceptable, it becomes doubly incumbent on government to use that money well. It's got to be used efficiently."
Drinking: Miller Lite

Mary Graves, 23, of the Gold Coast
"It's not even a surprise to me; I feel like our city has the highest tax in the country. I don't think I'll notice, because most college bars are all wristband specials anyway. But it's going to affect candy? Now that I'll be upset about."
Drinking: Blue Moon

James Jeffries,
30, of South Shore
"This is just the worst time to be adding another tax on top of all the other taxes, with the economy being how it is. I don't think it's that significant of an increase where it will affect how much I drink, but it's a situation where people are getting tired of it."
Drinking: Nothing ... yet

Anthony Sacco, 31, of the Loop
"I wouldn't make a conscious decision to drink less. I think most people who are liquor drinkers will cut back on something else, like groceries."
Drinking: Guiness

Amanda Ulloa, 27, of the South Loop
"I don't buy a lot of alcohol so I don't think it's going to affect me that much. I just hate when they raise anything, like the CTA fare last year. It's an annoyance."
Drinking: Jack Daniel's and Coke

Sarah Cole, 26, of the Gold Coast
"I suppose if they're going to tax something, it's better that they're taxing things like liquor and candy and snacks, because those are indulgences. It's probably not going to affect me. There are enough specials and enough promotions that you can always find a cheap drink."
Drinking: Hacker-Pschorr

Jury still out on national junk-food tax
Los Angeles Times

Sin taxes on cigarettes have turned out to be the most effective weapon in the campaign to reduce smoking.

Why not try it on Flamin' Hot Cheetos, vanilla Coke and Twinkies?

With increasing vigor, public health experts and think tanks are calling for extra taxes on foods and drinks that are heavy in calories and light on nutrition. New York Gov. David Paterson proposed an 18 percent soda tax last year as a budget-balancing measure, only to abandon it three months later in the face of stiff public opposition.

Tax and fee hikes on items including candy and soft drinks are scheduled to go into effect Tuesday in Illinois. The taxes are part of the financing for the state's $31 billion public works program.

A Kaiser Family Foundation poll last month found that 55 percent of respondents favored a tax on unhealthful snack foods, up from 52 percent in April. Support for a soda tax rose to
53 percent from 46 percent.

And 63 percent of those who opposed the idea said they would change their minds if the revenue were used to fund healthcare reform and combat health problems related to obesity.
A report this summer from the Urban Institute said such taxes are needed to ensure that rising obesity rates don't cause the average American life expectancy to fall for the first time in history.

"We are killing 100,000 people per year, so something needs to get done," said University of Virginia pediatric cardiologist Arthur Garson, one of the study's authors.

Many citizens object to such "nanny state" attempts at social engineering.

"This is the most ridiculous idea I've heard," said Kellie Glass, a registered dietitian in Ashland, Ky., who doesn't care to be penalized for indulging in ice cream now and then.

"Folks are just not going to give up all the foods they love, even if they are more expensive."

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4 Comments

Lisa V. said:

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On Saturday, we went to the Elston Target and were charged 13.25% sales tax on LaCroix (carbonated) water (in cans). Apparently, it is a soft drink. I think it is water and Target could neither explain why water is taxed at the higher amount or why they were collecting this tax before the 1st.

Lisa V. said:

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Ah, my mistake. The 13.25% on soft drinks has been around a while. But, I still don't understand why sparkling water, which is just water, is taxed at this rate.

Logan McCombs said:

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There could be something good out of this for me....a cure to my sweet tooth. Wait! I don't want a cure. How can they do this?

vaughnchicago said:

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The said irony of all of this is that Booze & Candy were probably helping a lot of folks deal with the burdens of this economy. How long before our Air is taxed I wonder?

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