Ohio trying to raise alcohol tax

[Ben]

[url="http://www.lancasteronline.com/pages/news/ap/4/beer_tax"]http://www.lancasteronline.com/pages/news/ap/4/beer_tax[/url]

Bar Tabs Going Up As States Tax Alcohol
By M.r. Kropko
Associated Press Writer

Published: May 24, 2005 8:29 AM EST

CLEVELAND (AP) - If Doug Petkovic has to charge more for a cold one, running his upscale restaurant in this blue-collar city is going to get even tougher. But that's what Petkovic will have to do if the Legislature decides to double the beer tax to help ease the state's money crunch.

"Any type of price increase makes it more difficult for people to come here and dine," said Petkovic, who owns Theory in the up-and-coming Tremont neighborhood. "In my eyes, that sort of taxation amounts to almost persecution."

Not surprisingly, drinkers, brewers and distributors feel like Petkovic does. The plan, however, does have supporters: Gov. Bob Taft, who proposed it to help balance the $51 billion two-year budget, and those who point to the social and economic costs of alcohol abuse.

More and more states are considering higher alcohol taxes after years of raising cigarette rates.

This year, Kentucky and Washington state hiked their liquor tariffs. Montana, Indiana and North Dakota rejected higher beer taxes.

Texas is still considering an increase, which would go to help pay for public schools. And Ohio lawmakers must decide what they're going to do before the new fiscal year starts July 1.

Taft is calling for the excise tax to go from 18 cents to 36 cents a gallon on alcoholic beverages other than liquor, notably beer and wine. The cost of a beer would go up depending on how each manufacturer and retailer passes along the tax. It most cases it would be pennies.

Overall, the increase would add an additional $50 million for the state's general fund. Ohio received $58.8 million in tax revenue from alcoholic beverages in the 2004 fiscal year.

Kentucky's General Assembly in March OK'd increasing the wholesale liquor tax from 9 percent to 11 percent, which is expected to raise $8.8 million this fiscal year. Washington state's budget is expected to get $50 million from its $1.33-per-liter tax on hard liquor.

Kentucky's increase — the first in 50 years — allowed lawmakers to lower income taxes for the state's poorest families, said Sen. Charlie Borders, the Republican chairman of the budget-writing committee.

"Our tax increase on liquor was minuscule compared to what some people thought it should be," Borders said. "Believe you me, we've had no grief from the liquor industry because they've been treated very well in my opinion."

Ohio's proposed beer tax increase is part of a broader plan that would eliminate taxes on business equipment and inventory and lower business income taxes, among other things.

Excise taxes, sometimes called sin taxes, are a more palatable way to raise revenue for states than a broader tax, said Bert Waisanen, fiscal analyst for the Denver-based National Conference of State Legislatures.

Part of the reason is the moral message. The Center for Science in the Public Interest, a Washington-based nonprofit, contends that hiking alcohol taxes is a good way to fight alcohol abuse.

"Tens of millions of dollars a year already are spent marketing alcoholic beverages to underage consumers," George Hacker, director of the center's Alcohol Policies Project, said in a statement posted on the center's Web site. "Lower taxes and lower prices will only further entice young people to drink."

Businesses, however, are warning about the consequences.

Columbus Distributing Co., which handles Anheuser-Busch, may have to cut its work force if a tax increase translated into a drop in demand, said Paul Jenkins, the company's president.

"It is paid ultimately by the consumer," Jenkins said of a higher tax. "It's just the way the system works."

Sellers are worried, too, especially those near Ohio's borders. With the increase, Ohio's beer tax would be well above that in neighboring states.

"It's going to fall hard on the small guys," said George Thompson, owner of D&J Carryout, an independent seller of beer and wine in Toledo. He estimated 80 percent of his sales comes from beer.

Fred Lisy, downing a draft with lunch at Becky's, a popular tavern near Cleveland State University, said a few more cents probably won't deter him from buying brew — but that doesn't mean he likes the idea.

"It's just the whole principle of being taxed like that," he said. "It's distasteful."

[Guest steggyD]

[quote name='Ben' date='May 24 2005, 01:12 PM'][url="http://www.lancasteronline.com/pages/news/ap/4/beer_tax"]http://www.lancasteronline.com/pages/news/ap/4/beer_tax[/url]
...Kentucky's increase — the first in 50 years — allowed lawmakers to lower income taxes for the state's poorest families, said Sen. Charlie Borders, the Republican chairman of the budget-writing committee...
[right][post="95707"][/post][/right][/quote]

I find this part funny. Now the poor drunk has to pay more for his alcohol. He gains nothing.

[Guest bengaljet]

can't be true cause taxes are going down. 50 State Governors and Ohio has the worst governor of all 50 states(actually did a survey and Taft is #50). I don't drink so doesn't bother me,but don't like hearing beer companies laying off.

[Jamie_B]

[quote name='bengaljet' date='May 24 2005, 03:49 PM']can't be true cause taxes are going down. 50 State Governors and Ohio has the worst governor of all 50 states(actually did a survey and Taft is #50). I don't drink so doesn't bother me,but don't like hearing beer companies laying off.
[right][post="95737"]<{POST_SNAPBACK}>[/post][/right][/quote]


Do you got a link for the survey? I'm curious how my states governor did.

[Guest #22]

[quote name='steggyD' date='May 24 2005, 01:42 PM']I find this part funny. Now the poor drunk has to pay more for his alcohol. He gains nothing. 
[right][post="95714"][/post][/right][/quote]
what?


I support an alcohol tax hike (because it will cut down on domestic abuse cases, DUIs, etc.), but am strictly opposed to Tobacco increases.

I neither smoke nor drink, so I am not biased in that manner. I do like the occasional sip of bourbon, but that doesn't count.

[Guest bengaljet]

[quote name='Jamie_B' date='May 24 2005, 02:52 PM']Do you got a link for the survey? I'm curious how my states governor did.
[right][post="95740"]<{POST_SNAPBACK}>[/post][/right][/quote]
Don't have a link,just heard it on the news probably 2-3 wks ago.I don't even know who's the best(#1) but #50 was impressive. Probably off local TV in Columbus.Little tidbit that was interesting.
I've heard many complain about Taft,sounds like they had good reason.

[Guest steggyD]

[quote name='#22' date='May 24 2005, 04:01 PM']what?
I support an alcohol tax hike (because it will cut down on domestic abuse cases, DUIs, etc.), but am strictly opposed to Tobacco increases.

I neither smoke nor drink, so I am not biased in that manner. I do like the occasional sip of bourbon, but that doesn't count.
[right][post="95745"]<{POST_SNAPBACK}>[/post][/right][/quote]
You really think raising taxes will cut down on the amount of alcohol consumed. That's along the same lines as the war on drugs working. People will only consume cheaper alcohol. Even a ban on alcohol did not stop alcohol consumption. Also, those who are more likely to commit domestic abuse from alcohol are more than likely alcoholics. Higher taxes will not stop him from drinking.

BTW, I was only somewhat kidding. The quote said that the poor will pay less income tax due to the increased alcohol tax. I was jokingly saying that the money he saves in income tax will just go to the increased tax in alcohol. I was sort of stereotyping all poor people as alcoholics... bad me, bad me.

[Guest bengalrick]

[quote name='bengaljet' date='May 24 2005, 03:19 PM']Don't have a link,just heard it on the news probably 2-3 wks ago.I don't even know who's the best(#1) but #50 was impressive. Probably off local TV in Columbus.Little tidbit that was interesting.
I've heard many complain about Taft,sounds like they had good reason.
[right][post="95758"][/post][/right][/quote]

i did a quick google search and this is what i came up with:

[url="http://www.cato.org/pubs/pas/pa537/governorsreportcardtable.html"]click here[/url]

is this what you were talking about?

[Jamie_B]

[quote name='bengaljet' date='May 24 2005, 04:19 PM']Don't have a link,just heard it on the news probably 2-3 wks ago.I don't even know who's the best(#1) but #50 was impressive. Probably off local TV in Columbus.Little tidbit that was interesting.
I've heard many complain about Taft,sounds like they had good reason.
[right][post="95758"]<{POST_SNAPBACK}>[/post][/right][/quote]


Found it...

[url="http://ksdk.com/news/governor_ranking.aspx#alpha"]http://ksdk.com/news/governor_ranking.aspx#alpha[/url]

I'd fall somewhere in the middle on Warner, he's better than Gilmore (bolted when offered leadership in the GOP, and wasn't able to keep his no car tax promise) but no where near as good as George Allen was. Had the Republicans put up a caniadate that wasn't inept I don't think Warner would have won, he lost to John Warner in the senate race before he ran for Governor...bascily he's a rich guy that bought the Governorship, he's done ok but done some stupid things (closing the DMV on wednesdays to save money...until the complaints got out of hand) and hasn't done enough for the highway system in Notheren VA (pretty much because the rest of VA doesn't want to pay for it, so rather than make it better, because it would help the economy, (not that va has a bad one...but thats more because of Allen than him) hed bow to the rest of the state.)

Only say this because I've heard Rumors of him being a possible canidate in '08...he'd be a mediocre one in my opinion.

[Guest bengaljet]

[quote name='bengalrick' date='May 24 2005, 03:29 PM']i did a quick google search and this is what i came up with:

[url="http://www.cato.org/pubs/pas/pa537/governorsreportcardtable.html"]click here[/url]

is this what you were talking about?
[right][post="95767"][/post][/right][/quote]
I'd say so .That 30 looks to be lowest on the board for "F's". Announcer wasn't real enthusiastic-kinda like when Michigan beats OSU in football.Pretty low key-no bragging in the capital city.

[Guest BlackJesus]

[i]They have to make up for losing Huggins business [/i]

[Jamie_B]

[quote name='BlackJesus' date='May 24 2005, 04:39 PM'][i]They have to make up for losing Huggins business  [/i]
[right][post="95777"][/post][/right][/quote]


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