I don’t think I’ve ever really raised a political issue here, but here is one that hits close to home: The Associated Press reports that the Senate Finance Committee as part of the “Soda Tax Bill” we’ve been hearing about is also considering increasing taxes on beer, wine and hard liquor. Things are still preliminary but the AP is saying that the documents committee members were given call for the Federal tax on beer to go from 33 cents to 48 cents a six-pack, a 145 percent increase. Wine will go from 21 cents a bottle to 49 cents a bottle, a 233 percent increase and hard liquor, from $2.14 per fifth to $2.54 per fifth, a 19 percent increase.
Things are still early in the legislative process, but now its my ox getting gored. Let’s hope the liquor industry lobbyists can do their thing.
2 Comments
June 12, 2009 at 2:47 pm
Ok, not to be nit-picky or to raise my nerd glasses here, but…
The beer tax represents a 15 cent raise in taxes which is only a 45.46% raise over the previous 33 cent tax.
The wine tax represents a 28 cent raise in taxes which is only a 133% increase over the previous 21 cent tax.
Finally, the liquor tax represents a 40 cent raise which is about a 19% increase as you stated.
However, not to raise my nerd glasses even more, what really should matter economically is the volume of change not the ratio. Therefore the hard liquor tax increase is really the worst. The basic premise behind that thought is that say there was a sale across town for $50 off some expensive clothing item or $50 off a brand new car. While you would say, “eh, its only $50 off a whole car” and perhaps not drive across town you might actually do the same thing for $50 off the new clothing item. However, you’re getting the same $50 benefit to your wallet either way.
Ok nerd hat put away.
June 16, 2009 at 1:20 pm
Right on Josh! I will accept your corrections as I am mathematically challenged. Those numbers were from the AP. I see what you are saying with respect to the volume of change, though.