Beer Tax Rumor Bubbles Up in Olympia

Politics, This Washington April 2, 2010 at 5:59 pm Camden Swita

Jeff Gombosky, a lobbyist for Anheuser-Busch in Olympia, tells PubliCola he has heard a rumor that a beer tax was floated in Olympia on Friday as a revenue source to break the stalemate in Olympia. He has not seen anything official yet, however.

Gombosky said generally Anheuser-Busch does not support singling out one item or industry for taxation (the House has already dropped its proposal for a $30 million gum and candy tax and a $96 million soda pop tax, which actually resurfaced today, has been MIA in both the House and Senate budgets all session). Gombosky says he especially doesn’t support the taxation of beer if revenue from the tax pays for something unrelated to alcohol programs.

For instance, if that revenue garnered from a tax on beer goes to pay for early childhood education, Anheuser-Busch would be more likely to fight it than if it went to pay for alcoholism treatment.

The Senate and House have been at odds over how to generate revenue all session, forcing a special session. The Senate wants to raise the general sales tax by two-tenths of one percent, or $200 million this biennium, and increase B&O taxes on service providers, like lawyers and doctors. The House wants a longer list of B&O tax targets, more closures of tax exemptions (like on banks) and a lower ending fund balance than the Senate. Both chambers have agreed on $800 million in new revenue starting this biennium.

A tax on beer would likely not amount to more than a sliver of $800 million, but it could be used to fund state alcoholism treatment and free up money to be used somewhere else in Washington’s social safety net.

beer tax Taxes Washington state Legislature

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rebeloly

Ooooooh boy! This will definitely hit the middle class! Why not tax champagne instead? Us middle class folks don't drink champagne.
Sarajane46th

How interesting that the biggest lobbyist against the beer tax is the one floating the beer tax rumor. As a former lobbyist for chemical dependency treatment, I'm fervently in favor of raising the beer tax, which hasn't been raised in decades.

According to the website http://www.beersoaksamerica.org: “The federal beer tax has been increased only once in the last five decades, 1991. Even at today's rate, $18.00 per barrel, the tax would have to increase to $1.15 per six-pack (from its current level of approximately $0.33) just to offset the effects of inflation since 1951.” According to the Bureau of Labor Statistics, “…if the rate had merely kept up with inflation since 1951, the amount of [federal] revenue collected would have exceeded $13 billion.”

According to a Tax Foundation 1999 study, “Washington state, which levies a statewide 6.5 percent sales tax, additional local sales taxes and a $7.172 per barrel beer excise tax, shares a border with Oregon, which levies no state or local sales taxes and has a state beer excise of just $2.60 per barrel.” This results in substantial packaged beer sales being lost to Oregon. However, almost as many cases are exported from WA to Canada.

“Beer is the alcohol of choice for under-age drinkers,’’ CA Assemblyman Jim Beall said. “Research tells us that kids who begin drinking before they are 15 are more prone to become alcoholics. They are also more susceptible to alcohol-related problems such as vehicle accidents and assaults later in life than people who wait until they are 21 or older to take their first drink.”

From OP's blog: “Because the beer industry – especially the beer distributors lobby – have had an effective hold on legislators, contributing millions of dollars in campaign contributions. Legislators have had a long-standing, cozy relationship with industry lobbyists…
“Oregon’s brewers say a tax increase would devastate them, causing job losses and financial ruin. True? Patently false. “There is absolutely no evidence anywhere that a beer tax increase would mean fewer sales and lower profits for Oregon’s brewers. Prior studies from other states say the only customers who may be drinking less because of higher taxes are problem drinkers and underage drinkers.”

“The latest survey conducted in February, 2009 found that 61 percent of Oregonians favor increasing the beer tax while 65 percent oppose making significant cuts to substance abuse and treatment programs, even in light of the state’s recent budget woes.”

Perhaps Washington's progressive legislators who sincerely want to raise the beer tax on out-of-state brewers and use the revenue to fund substance abuse prevention and treatment, Basic Health and the Disability LIfeline should take a field trip to Oregon and lobby their legislators to raise their beer tax, the lowest in the nation.
Bunny

How interesting that the group most in need of raising more taxes is the group that can't stop spending other peoples money.

Viva La Cola!

Beer Tax Rumor Bubbles Up in Olympia