A 20% hike in liquor taxes is being considered in Chicago, which already has the highest such tax in the US.

The Distilled Spirits Council (DSC) denounced the proposed increase as "another blow to Chicago's hospitality industry, exacerbating cross-border sales and pushing more convention and tourism business out of the city."

At the current tax rate of US$8 per gallon, ($1.76 per litre) Chicago's liquor taxes are more than twice the rate of neighbouring states Wisconsin and Indiana. DSC's analysis shows excessive tax rates have cost the city 1200 hospitality jobs, as restaurants, bars, nightclubs, hotels and consumers already face seven different taxes each time they buy a single spirits product.