Taxwinkle's soda tax now under attack from Illinois Liquor Commission

Toni "Taxwinkle" Preckwinkle's hated soda tax is under attack from a surprising source, the Illinois Liquor Commission. Last week news broke that the federal government may withhold $87 in funds because of the way Crook County handles refunds on the tax when food stamps are used to purchase sugary drinks.

Let's review: The people of Cook County detest the tax and the state and federal governments have problems with it. You know, it's pretty clear that Taxwinkle's pop tax is a wretched idea, although it's the predictable result of nearly five decades of Democratic control in the county.

From Crain's Chicago Business (paid subscription required):

Cook County is in hot water with yet another government agency over its pop tax, this time the Illinois Liquor Control Commission.

In a letter to Cook County Board President Toni Preckwinkle, the commission wrote that even though the tax on sweetened beverages excludes alcohol, many of the wholesalers to which it applies distribute both kinds of products and therefore have to deal with the tax complications of the county's new levy. As a result, it "may lead to practices that violate the Illinois Liquor Control Act."

"ILCC is concerned that the unintended consequences of the refund and credit procedure for the sweetened beverage tax would result in ongoing, continuous violations of existing law," commission Executive Director Donovan Borvan wrote. Other difficulties he cited include "extreme costs of enforcement and audit, and the potential for mandatory denial of deliveries to retailers."

There is a group that loves the sweetened beverage tax-retailers in located just outside of Cook County.