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Breaking down the proposed beer tax

Saturday, April 10 2010 - The Hopper | Permalink

According to a series of sources, the three-year beer tax increase proposed by House and Senate conferees would make beer taxes the third highest in the nation but also decrease beer consumption and enhance public safety.

Currently, the state's 28 cents per gallon tax on macro-brews is 18th highest in the country. The addition of an extra 50 cents per gallon would, for now, leave the state's beer tax surpassed only by Alaska ($1.07 per gallon) and Hawaii (93 cents per gallon). That's according to the state's Liquor Control Board.

That could help reduce consumption. The Center for Disease Control estimates that beer consumption decreases by 5 percent for every 10 percent of increase in price.

The state's Economic and Revenue Forecast Council also has projected that, despite the decrease in consumption, higher beer taxes still increase revenue. The proposal being considered by the Legislature is expected to bring in an additional $59 million during the remainder of the 2009-11 budget cycle.

So who is most likely to curb consumption? The National Institute on Alcohol Abuse and Alcoholism has reported that youths are more sensitive to higher prices and taxes and a key factor in curbing youth alcohol abuse.

Finally, a February study by the American Journal of Preventative Medicine found higher alcohol prices and taxes have consistently related to reduced rates of driving while impaired, underage drinking, vehicle accidents and violent crime.

 

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The Senate Democratic Caucus is comprised of 27 Democratic Senators from Washington State. For more information visit SenateDemocrats.wa.gov.

 

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