Politicians at it Again - $1.80 Per Six-Pack Tax in California?
California Assembley Member Jim Beall, Jr., D-San Jose has introduced legislation that would increase the excise tax on beer by $1.80 per six-pack of $0.30 per 12 oz bottle. This tax would be levied against the manufacturer, but obviously passed on to the consumer.
This article details the legislation more.
You can contact Assembly Member Jim Beall, Jr. here, or use this contact info:
E-Mail Assembly Member Jim Beall, Jr.
Capitol Office: District Office:
State Capitol 100 Paseo De San Antonio, Suite 300
P.O. Box 942849 San Jose, CA 95113
Sacramento, CA 94249-0024
Tel: (916) 319-2024 Tel: (408) 282-8920
Fax: (916) 319-2124 Fax: (408) 282-8927
Californians should be especially worried, but all beer lovers should take notice. This would be a bad trend to start. The above linked article states:
Beer corporations continue to rake in profits. American’s biggest brewer, Anheuser-Busch, reported a net income of $2.1 billion in 2007, nearly 8 percent above the previous year; Molson Coors reported $507 million in revenue after taxes.
What they don't tell you is that the enormous number of craft beer producers in California, small local businesses, do not make nearly this kind of revenue or profit. Many are teetering on the brink of bankruptcy and, with the rising prices of raw materials, this additional cost could send many over the edge. Beyond this, raising prices to stem consumption of alcohol is ludicrous and doesn't treat the actual societal problems. All it will do is cause people to spend more money on booze and less elsewhere.
Beall states, "As responsible corporate citizens, breweries should be willing to pay their fair share of the damage that alcohol wreaks on society." You know, it's funny, I was pretty sure alcohol is pretty taxed already. Not to mention alcohol abuse is usually a symptom of a bigger problem, not the cause of all the problems. He goes on to say, "Researchers have concluded that raising beer taxes not only minimizes drinking but reduces alcohol-associated problems such as broken families, venereal diseases, property damage, and birth defects caused by fetal alcohol syndrome," and his office cites a study that "recommended a raise in taxes on beer to curb consumption by teenagers who, as a group, are highly price conscious." I didn't realize that raising taxes on the least intoxicating alcohol beverage you can buy would help the world so much [please note heavy sarcasm]. Teenagers are price conscious, but they're still going to drink. They'll just drink cheap vodka, and get even drunker. They won't stop drinking, they'll just switch product. You want to help prevent those broken homes, venereal diseases, property damage and birth defects? Education is the answer. And counseling. Tax beer and people will just get their buzz elsewhere.
It's fortuitous that the time for brewers to "start paying their fair share" comes when this state is already in a huge budget deficit. Maybe, as a responsible government, you should figure out a way to fix this deficit without devastating small local businesses. There are around 275 craft breweries and brewpubs in California. After they get hit with a $1.80 per six-pack tax, I wonder what that number will be?
