News / Health & Wellness
Alcohol Taxes On the Rise
A New York Times article titled “Drink up, America. The government needs the money” outlines the way cash-strapped states are using alcohol sales to boost their bottom lines.
“Since the recession started in earnest in 2008, dozens of states and cities have tinkered with laws that regulate alcohol sales as a way to build up their budgets,” The New York Times reports. “Twelve states have raised taxes on alcohol or changed alcohol laws to increase revenue, including Maryland, which in July pushed the sales tax on alcohol to 9 percent, from 6 percent — the first such increase in 38 years and one that is expected to bring in $85 million a year.
If your state hasn't seen an increase, don't breathe a sigh of relief just yet. In November, voters in cities across Georgia will decide whether to repeal colonial-era laws that ban alcohol sales on Sunday. Nearby Tennessee has already loosened their grip on liquor, allowing those touring the popular Jack Daniel’s Distillery in Lynchburg, Tenn., to sample the product. It’s a big step for this famously dry country.
Others aren’t relying on legislation to bring in cash. Louisiana State University is allowing a local brewery to mix up batches of a special brew called Bandit Blonde under a special licensing agreement that earns money for the school with each beer bought.
While many are seeing only green, the changes have some people seeing red. They feel that mixing alcohol with government or education is bad business.
It’s not proven that raising taxes will make anyone drink less and there is always concern that any new program that enables drinking may help make alcohol seem “okay” to teens. The nation’s states and local governments take in $17 billion year from alcohol taxes, according to the New York Times. If imbibing helps fund new roads or better schools, does that make it easier to say “yes” to having another or will stiffer taxes keep drinking in check? Only time will tell.
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