Beer Tax Update…
Federal government addicted to alcohol, tobacco, and firearms
July 15, 2010
Federal government tax revenue on alcohol, tobacco and firearms were up 41% to $20.6 billion in 2009. Good thing the Supreme court ruled once and for all in favor of the 2nd Amendment which gives all Americans the right to own firearms. Accordingly, smoking bans are being relaxed around the globe…..and as government tries to close budget gaps look for more smoking bans to be retooled and / or completely repealed. Afterall, smokers don’t cost society money…..they contribute hefty taxes into society. And a recent study found that it’s individuals who live a long life who are more of a cost burden to our healthcare system than smokers.
The U.S. federal government collected $20.6 billion in taxes on alcohol, tobacco, firearms and ammunition in fiscal year 2009, up 41 percent from the previous fiscal year, according to the annual report of the Alcohol and Tobacco Tax and Trade Bureau.
Part of the U.S. Treasury Department, the TTB credited most of the $6 billion rise in revenues collected to the increased taxes on the tobacco industry
State Budgets Get Boost from Alcohol Tax Increases
7/9/09
June 30 marked the end of the fiscal year for a number of states, and with many suffering from dramatic budget shortfalls, the question looms large, how many states will raise alcohol taxes to prevent cuts in much-needed programs and services. While California’s budget still remains uncertain, several states have taken action, including New York, New Jersey, and Massachusetts.
New Jersey passed a budget (effective July 1) that increases taxes on wine and spirits by 25%, but unfortunately, its beer tax remains the same. Despite protestations by the “hospitality industry” (a.k.a., Big Alcohol), this increase will raise the cost of an average bottle of wine by only around 3.5 cents.
Meanwhile, the new Massachusetts budget increases the state sales tax to 6.25% (from 5%) and removes the previous exemption for beer, wine, and spirits, effective August 1. While we would prefer to also see an excise tax increase, removing the sales tax exemption makes good policy sense.
Also, effective May 1, New York increased its beer excise tax, though just a measly 3 cents, from 11 to 14 cents per gallon, while wine increased from just under 19 cents per gallon to 30 cents per gallon. That pathetic increase moved California from having the third lowest wine tax rate (at 20 cents per gallon) to the second lowest, while Louisiana retains the prize for the bottom of the wine barrel at 11 cents per gallon.
It’s unclear if any of these new funds will be used to pay for alcohol-related programs, or at least would prevent the painful cuts that so many states are experiencing to their much-needed alcohol treatment and prevention programs. Interestingly, New York and Massachusetts also had separate bills that proposed higher increases in alcohol taxes than what passed in each state’s final budget.
For example, New York’s Assemblymember Felix Ortiz’s bill would have raised the beer tax to $1.08 per gallon, wine to $2.63 per gallon, and liquor from 1.70 per liter to $2.26 per liter, with 70% of the funds raised slated to go to an “Alcoholism and Substance Abuse Prevention and Treatment Fund.”
At least 12 states have already lost an opportunity to pass an alcohol tax increase this legislative session, mostly thanks to industry lobbying, while another dozen or so still have tax bills pending. Oregon lost a particularly painful battle, one that has been raging for many years. In Delaware, lawmakers rejected an excise tax increase in favor of doubling its licensing fees. With so many states still in dire need of funds (especially California), will lawmakers be willing to stand up to the powerful lobbying of Big Alcohol? Marin Institute is currently analyzing the 2009 legislative session to answer that very question.
Beer tax on tap for health care?
May 20, 2009
WASHINGTON (AP) — Consumers in the United States may have to hand over nearly $2 more for a case of beer to help provide health insurance for all.
Details of the proposed beer tax are described in a Senate Finance Committee document that will be used to brief lawmakers Wednesday at a closed-door meeting.
Taxes on wine and hard liquor would also go up. And there might be a new tax on soda and other sugary drinks blamed for contributing to obesity. No taxes on diet drinks, however.
Beer taxes would go up by 48 cents a six-pack, wine taxes would rise by 49 cents per bottle, and the tax on hard liquor would increase by 40 cents per fifth. Proceeds from the new taxes would help cover an estimated 50 million uninsured Americans.
