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  • From: "Lynn Wigglesworth" <lynnw1366 AT hotmail.com>
  • To: <homestead AT lists.ibiblio.org>
  • Subject: Re: [Homestead] Pay up, or Brew or distill your own
  • Date: Sat, 17 Jan 2009 13:20:07 -0500

Pennsylvania already has draconian laws on wine and liquor. Established in 1933, the Liquor Control Board completely controls the sale of wine and liquor in PA. Every drop, for restaurants, bars, personal use, must be bought though the LCB...only the brands they sell, from their stores, and at their outrageous prices and 18% tax. Beer can be purchased at a beer distributor, but still has a high state sales tax.

Lynn Wigglesworth
Tioga Co. PA
----- Original Message ----- From: "bobf" <bobford79 AT yahoo.com>
To: <homestead AT lists.ibiblio.org>
Sent: Saturday, January 17, 2009 12:25 PM
Subject: [Homestead] Pay up, or Brew or distill your own


This article from today's WSJ says that states are about to start increasing taxes on beer and spirits. I know that a few list members make their own drinkables. Georgia, Arkansas, & Kentucky are among the states mentioned in the article, but I would expect more states to follow. If you are inclined to imbibe, now might be a good time to learn to brew or distill................

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JANUARY 17, 2009 Officials Tempted By Alcohol Taxes Article

By DAVID KESMODEL

State lawmakers are hoping alcohol will ease the pain of recession and budget deficits.

Politicians in Kentucky and Arkansas in the past week announced proposals to increase taxes on alcoholic beverages, echoing similar efforts in New York and California.

Higher taxes on beer, wine and liquor face stiff opposition from alcohol distributors, retailers and other industry groups. Lobbies have helped kill most efforts to increase alcohol taxes in recent years. Still, deep economic woes might make such measures easier to pass in 2009.

"This will be an extremely tough year" to stop state tax increases, said Peter H. Cressy, chief executive of the Distilled Spirits Council of the United States, a trade group.

Mr. Cressy said his group is aware of tax-increase proposals in about 10 states, and he expects the idea to spread to as many as 30 more by year's end. The group has begun coordinating battle plans with local restaurant and hotel trade associations.

Politicians often look to so-called sin taxes during tough times. During the economic downturn early in this decade, politicians were more successful passing alcohol-tax increases than they have been in healthy economies, said Bert Waisanen, fiscal analyst for the National Conference of State Legislatures in Denver. A handful of states raised alcohol taxes in 2003.

Tobacco-tax increases are more common. In 2007, states approved a combined $1 billion in tobacco-tax increases, compared with $3 million in alcohol-tax increases, Mr. Waisanen said.

In Kentucky, Democratic Rep. Rick Nelson last week introduced a bill to raise the wholesale tax on alcoholic beverages. His idea is to raise an additional $68 million of revenue for the state, which faces a $450 million budget shortfall. He said his proposal would add about 25 cents to the price of a six-pack of beer.

"We need the money, and I think among the electorate it will be a good bill," Mr. Nelson said. "The only thing that worries me is that the liquor industry has a lot of money" to fight it.

The Kentucky Beer Wholesalers Association and the Kentucky Distillers' Association have launched a campaign to thwart the bill, arguing it could result in job losses. The state's alcohol industry employs about 17,000 workers at distilleries, bars and liquor stores. Purveyors also appealed on behalf of their customers.

"When the national economy is a disaster, it doesn't appear to me that the way to remedy the problem is to increase the tax on the average guy," said Gene McLean, executive director of Kentucky's beer-wholesalers group.

Instead of raising taxes, he said, lawmakers should consider allowing alcohol sales statewide. About three-quarters of Kentucky counties remain dry or partly dry.

New York Gov. David Paterson last month proposed raising beer and wine taxes -- part of a long list of higher taxes and fees to raise $4 billion to help offset the state's $15.4 billion shortfall.

The tax increases would add a projected $63 million to New York coffers. "Beer and wine tax rates are two areas where we are far below the national average," said Matt Anderson, a spokesman for the state budget division. The state's wine tax of 18.9 cents a gallon is the nation's second-lowest, he said.

Among a number of groups opposing the proposal is the New York Association of Convenience Stores, which represents many upstate stores. "The cumulative effect of sharp increases in those taxes is going to leave our customer with less money in his or her pocket to buy stuff," said Jim Calvin, the group's president.

Industry groups are also resisting a proposal by California Gov. Arnold Schwarzenegger to raise alcohol taxes by a nickel a drink, which would generate an estimated $829 million through mid-2010. So far, lawmakers have given the proposal a cool reception.

In Wisconsin, a group representing district attorneys has proposed increasing the state's beer and liquor taxes to raise prosecutors' pay and address a shortage of assistant district attorneys. The Tavern League of Wisconsin, representing many bar owners, will fight any such proposal, said Scott Stenger, a lobbyist for the group.

Other states are considering alternatives that could bring more revenue from alcohol sales, which tend to be resilient through downturns. In Georgia, recently introduced legislation would allow local governments to let voters decide whether to permit Sunday sales of alcohol in grocery, convenience and liquor stores. About a dozen states in recent years have ended bans against Sunday sales.

Federal excise taxes on alcohol, meanwhile, have not been increased since 1991, and Mr. Cressy said he is optimistic that Congress won't explore an increase this year.

Write to David Kesmodel at david.kesmodel AT wsj.com




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