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Can you afford Maryland’s proposed alcohol tax?

March 10th, 2010
The following letter regarding the The Lorraine Sheehan Health and Community Services Act of 2010 was sent to the delegates who represent me.  I’m looking forward to hearing their responses.   I’ve posted before about this topic.   In case you missed those posts, look here.    Comments are welcome.

Delegates Malone & DeBoy,

I would like to understand your position on House Bill 832.   I am concerned that this is an easy target to raise taxes without looking at the source of Maryland’s budget woes.   While I am not opposed to raising taxes, I take great exception to the following passage of the bill:

  "Comptroller shall distribute the remaining alcoholic beverage tax revenue to the General Fund of the State".

If this bill was intended to raise funds for health concerns, why would any funds at all make it into the general fund? Beyond this, the rate of increases for the different beverage areas are astronomical.   My intelligence is being mocked when I’m told its $0.10/beer.  In actuality, the percentage increases are obnoxiously and ridiculously high:

MD proposed tax rates ($$/gal):

  beer 1.16  (1,288% increase)
  wine 2.96  (740% increase)
  spirits 10.03 (668% increase)

If the tax increase passes, our state alcohol beverage taxes will be four times the
national average for beer (highest in the nation; 2nd place Alaska at $1.07/gal), over three-and-half times the national average for wine (highest in the nation; 2nd place Alaska at $2.50/gal), and just shy of 50% higher than the national average for spirits (eleventh-highest in the nation; 1st place Washington state at $26.45/gal) [Source: the Jernigan paper referred to in the House bill preamble].  Please take into consideration the true impact of such a bill.  Any way you slice it, this bill is bad fiscal policy and doesn’t solve any aspect of the looming budget crisis.   The only true way to solve the budget crisis is to reduce spending.

Looking forward to your response,

Ben Brouse

 

Update #1: I added the link to the figures that were cited.

Update #2: Both Delegates responded that they were opposed to this bill.    I will be watching.

Related posts:

  1. Maryland’s Proposed Alcohol Tax (HB 832)
  2. Maryland’s Three-Tier Distribution System is Broken
  3. Sen. Joan Carter Conway Singlehandedly Kills MD Wine Bill
  4. 2010 Maryland Wine Bill is Dead
  5. Follow the Money

Ben Brouse Beer, Food & Drink, Wine

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