1900% Beer Tax Hike Proposed in Oregon...

[jkwest]

clicky

Bad news for micro-brews!!

PORTLAND, Ore. -- Five Oregon state lawmakers want to impose a hefty tax on beer and have introduced a bill that brewers say would cripple them.

Four Portland legislators joined a Springfield senator to introduce Oregon House Bill 2461, which would impose a $49.61 tax on each barrel of beer produced by Oregon brewers.

The tax would raise revenue for the state at a time when budgets are running in the red. Specifically, the bill says it would fund prevention, treatment and recovery programs for those addicted to alcohol and other substances.

The bill's language defends the tax by arguing alcoholism and “untreated substance abuse” costs the state $4.15 billion in lost earnings as well as more than $8 million for health care and nearly $1 billion in law enforcement-related expenditures.

Oregon ranks 49th among states in its malt beverage taxation rate, which has not been raised in 32 years, according to HB 2461.

Brewers hopping mad over tax

Brewers say Oregon's low beverage taxation rate is what makes the state such an attractive place for crafting beers. The state’s brewery guild claims it would also amount to the single largest beer tax hike in the nation's history.

Laurelwood Public House & Brewing Co. owner Mike De Kalb said the tax may sound like a good idea in this economic climate, but he believes it would cost jobs and not raise enough new tax revenue to justify the increase.

“We’re a family-owned, local Portland business. We don’t want to see something cost taxpayers more than the revenue it would bring in,” De Kalb said.

De Kalb said Oregon would potentially lose its prominence as a craft-brew destination and that some small breweries could potentially go out of business. He said Laurelwood could possibly face job cuts as well. Prior versions of the beer tax bill have exempted small breweries but this one does not, he added.

“If that tax is passed it would mean consumers would pay $315 million more (in 2009) to buy the same amount of beer they bought in 2008," De Kalb claimed. "A pint of beer would go from $4.50 to $6.”

Rep. Ben Cannon, one of the bill's sponsors, questions whether the true hit to consumers would be as high as beer makers claim. He told KGW his office measured the increase at 15 cents per glass not $1.50.

But Kurt Widmer of Widmer brewing told KGW that in order to keep profit margins constant, he'd increase his price to distributors, who in turn would likely increase prices to retailers, making the 15 cent per class estimate unrealistic.

House Bill 2461 has been introduced by Portland Reps. Ben Cannon and Michael Dembrow, Portland Sens. Jackie Dingfelder and Diane Rosenbaum, and Springfield Sen. William Morrisette.

[Uniquely]

It's called a luxury tax or a sin tax and it happens all the time.... ask a smoker. I really have no problem with it..... especially if some of the extra revenue generated goes to help alcoholism prevention or the victims of drunk drivers..... or some other problem related to alcohol use and abuse.

[MyBlu-rayBrotherEd]

Good reason to start brewing your own.

[jadedeath]

Per Barrel?

Do the math on how many bottles can come out of a barrel and then get back to me with the arm waving hysterics.

If this comes out to being a dollar per bottle, I'll be incredibly shocked.

Logan

[Beta Man]

A "Barrel" of beer is 31 Gallons.......

[Beta Man]

The end.... is near....

[toef]

I think I witnessed a real, live magic trick in this thread. Someone made a post disappear.

[Rob71]

Originally Posted by toefer

I think I witnessed a real, live magic trick in this thread. Someone made a post disappear.

[quest88]

Originally Posted by robinandtami

It's called a luxury tax or a sin tax and it happens all the time.... ask a smoker. I really have no problem with it..... especially if some of the extra revenue generated goes to help alcoholism prevention or the victims of drunk drivers..... or some other problem related to alcohol use and abuse.

Sure in a perfect world. It will probably go into the state's general fund. When Cali decided to put a tax on cigarettes it just developed a market for cheaper cigarettes.

[jadedeath]

Originally Posted by Beta Man

A "Barrel" of beer is 31 Gallons.......

How many bottles are in a gallon? *LOL*

Logan

[Bigdog]

All this will do is cause more job loses and further discourage any small business ownership in this country!

[jsteinhauer]

Originally Posted by Bigdog

All this will do is cause more job loses and further discourage any small business ownership in this country!

+1

And beer is not a sin (though neither are cigarettes). But the difference between beer and cigarettes is that even moderate use of cigarettes has adverse heath consequence, while moderate consumption of beer is completely within a healthy lifestyle.

Don't get me wrong, I am opposed to anti-tobacco laws and tobacco taxes, as well, but beer and cigarettes are not in the same category.

It's a sick society. Free condoms for kids, free syringes for homeless junkies, and punish the responsible taxpaying adults who want to enjoy a beer and a smoke in a bar and then go home.

[Rob71]

Originally Posted by jsteinhauer

+1

And beer is not a sin (though neither are cigarettes). But the difference between beer and cigarettes is that even moderate use of cigarettes has adverse heath consequence, while moderate consumption of beer is completely within a healthy lifestyle.

Don't get me wrong, I am opposed to anti-tobacco laws and tobacco taxes, as well, but beer and cigarettes are not in the same category.

It's a sick society. Free condoms for kids, free syringes for homeless junkies, and punish the responsible taxpaying adults who want to enjoy a beer and a smoke in a bar and then go home.

Agree 100%.

[jono_0101]

Originally Posted by jsteinhauer

+1

And beer is not a sin (though neither are cigarettes). But the difference between beer and cigarettes is that even moderate use of cigarettes has adverse heath consequence, while moderate consumption of beer is completely within a healthy lifestyle.

Don't get me wrong, I am opposed to anti-tobacco laws and tobacco taxes, as well, but beer and cigarettes are not in the same category.

It's a sick society. Free condoms for kids, free syringes for homeless junkies, and punish the responsible taxpaying adults who want to enjoy a beer and a smoke in a bar and then go home.

couldnt have said it better myself!

[camper]

Originally Posted by jsteinhauer

+1

And beer is not a sin (though neither are cigarettes). But the difference between beer and cigarettes is that even moderate use of cigarettes has adverse heath consequence, while moderate consumption of beer is completely within a healthy lifestyle.

Don't get me wrong, I am opposed to anti-tobacco laws and tobacco taxes, as well, but beer and cigarettes are not in the same category.

It's a sick society. Free condoms for kids, free syringes for homeless junkies, and punish the responsible taxpaying adults who want to enjoy a beer and a smoke in a bar and then go home.

Agree, totally.

And while the cost per bottle in taxes is most likely just pennies (or nickles) that's not the point. The point is that they are increasing taxes buy roughly TWO THOUSAND percent. That should incense anyone who isn't willing to pull down their pants and wiggle their buts right before the government proceeds to 'tax' them.

I seem to recall our country being formed over some simliar types of policies...

camper

[Beta Man]

Originally Posted by jadedeath

How many bottles are in a gallon? *LOL*

Logan

about 10 and 1/2 if they're 12 oz bottles..... (128 oz in a gallon....) so that would make about 330 beers in a "Barrel"

So a $50 tax on a "Barrel" spread out over 330 beers, is about $0.15 each..... Not sure how they have decided that this tax would make a pint go from $4.50 to $6.00 (per the article) I understand a pint is 16 oz and some change.... but based on the math, a 24 oz beer should go up by only $0.30....

It's nothing new for businesses to exploit the fact that they themselves are being exploited...... why pass along the cost at no profit eh????

Besides.... I'll keep paying more for micro-brews rather than buy the other watered down crap that is mass produced..... My current favorite is Bell's Double Creme Stout.... it's about $14.00 for a six pack here. I don't drink that much, so that helps at least I can't imagine a tax such as this having that much effect on beers of this sort.... the "Fixed Costs" of producing smaller batch brews is the primary reason for the high cost..... I'm guessing this type of cost will quickly be absorbed...... but the money could do a lot of good for the state.... so I don't see the problem. (Bells is from Kalamazoo MI, so no fear anyways )

The "Cork" tax on wines, now THAT is insane......

[Rob71]

The real question is why can't Oregon balance their budget without raising taxes. Oregon also wants to put a 1.2 cent/mile milage tax on driving. Where does it stop?

[SellmeyourDVD]

Originally Posted by robinandtami

It's called a luxury tax or a sin tax and it happens all the time.... ask a smoker. I really have no problem with it..... especially if some of the extra revenue generated goes to help alcoholism prevention or the victims of drunk drivers..... or some other problem related to alcohol use and abuse.

I agree.

The crappy thing is that the demand for things like cigarettes and alcohol almost never change/very slightly change due to price change, they just try to find cheaper brands. The state/government always win with big taxes being put on those types of merchandise.

[Uniquely]

Originally Posted by Rob71

The real question is why can't Oregon balance their budget without raising taxes. Oregon also wants to put a 1.2 cent/mile milage tax on driving. Where does it stop?

Because during this economic crisis.... tax revenue is steadily decreasing..... and more people need assistance. Unemployed people can't pay taxes and as real estate values go down..... so do property taxes.

[Uniquely]

Originally Posted by jsteinhauer

+1

And beer is not a sin (though neither are cigarettes). But the difference between beer and cigarettes is that even moderate use of cigarettes has adverse heath consequence, while moderate consumption of beer is completely within a healthy lifestyle.

Don't get me wrong, I am opposed to anti-tobacco laws and tobacco taxes, as well, but beer and cigarettes are not in the same category.

It's a sick society. Free condoms for kids, free syringes for homeless junkies, and punish the responsible taxpaying adults who want to enjoy a beer and a smoke in a bar and then go home.

I don't think we need to try to judge which is better or worse. They both place unneccessary costs upon society when used to excess. Drunk drivers don't just hurt themselves.... they hurt innocent people as well. Alcoholics who are unable to maintain a job and home are a drain on public funds. Public drunkeness increases costs of law enforcement, judicial systems and penal systems. I'm a smoker.... and I have no troubles with paying a "sin tax" to help offset costs caused by other people's smoking. My wife is a drinker, and I have no problems paying a "sin tax" to offset costs caused by other people's irresponsible drinking. Just like I have no problem that my property taxes go to educate other people's children.

Taxes are just a cost of living in society... and as long as they are not exorbitant.... I see no sense in whining about them. I just don't see 15 cents a bottle as being some HUGE tax burden that a casual drinker can't bear. And if 15 cents is 1900% increase.... that means taxes before were less than a penny a bottle.... which in my book means it was far undertaxed to begin with.