LETTER TO CONGRESS: “NOW IS THE TIME TO REDUCE ALCOHOL TAXES.”
Last week several industry trade groups, including DISCUS (Distilled Spirits Council of The United States), WSWA (Wine and Spirits Wholesalers of America) and ABL (America Beverage Licensees) sent a letter urging Congress to reduce excise taxes on alcohol. Here are some snippets of the letter:
"In the last several sessions of Congress, hundreds of Members of Congress have co-sponsored bipartisan legislation to reduce excise taxes on alcohol. Now is the time to consider a reduction and dismiss any consideration of an increase.”
“A key measure of the fairness of a tax system is its progressivity. Increasing the excise tax on beer, wine, and spirits is regressive, hitting lower and middle income taxpayers the hardest. A tax increase on alcohol beverages would raise retail prices in a market where the majority of consumers earn $40,000 annually or less.”
“In addition to unfairly taxing consumers, all who make a living in manufacturing, distribution, and sales are adversely affected. Farmers, producers, suppliers, retailers, and distributors, who form the infrastructure of our business, face significant job losses as a result of sales declines created by increased taxes.”
“Research also shows that higher alcohol taxes have not proven to be effective deterrents for alcohol abuse. Claims to the contrary mistakenly attribute long-term declines in alcohol abuse indicators to taxes, without accounting for a myriad of other factors such as increased parental involvement, legal penalties, targeted intervention programs, server training, and effective state-based regulation. It is also important to note that studies reveal the majority of teens who drink get their alcohol from parents or other adults.
Higher prices don't matter if it's free. An increase in price will have no impact whatsoever on teens' decisions to drink or refrain from drinking.”
"In the last several sessions of Congress, hundreds of Members of Congress have co-sponsored bipartisan legislation to reduce excise taxes on alcohol. Now is the time to consider a reduction and dismiss any consideration of an increase.”
“A key measure of the fairness of a tax system is its progressivity. Increasing the excise tax on beer, wine, and spirits is regressive, hitting lower and middle income taxpayers the hardest. A tax increase on alcohol beverages would raise retail prices in a market where the majority of consumers earn $40,000 annually or less.”
“In addition to unfairly taxing consumers, all who make a living in manufacturing, distribution, and sales are adversely affected. Farmers, producers, suppliers, retailers, and distributors, who form the infrastructure of our business, face significant job losses as a result of sales declines created by increased taxes.”
“Research also shows that higher alcohol taxes have not proven to be effective deterrents for alcohol abuse. Claims to the contrary mistakenly attribute long-term declines in alcohol abuse indicators to taxes, without accounting for a myriad of other factors such as increased parental involvement, legal penalties, targeted intervention programs, server training, and effective state-based regulation. It is also important to note that studies reveal the majority of teens who drink get their alcohol from parents or other adults.
Higher prices don't matter if it's free. An increase in price will have no impact whatsoever on teens' decisions to drink or refrain from drinking.”
posted at 2:26 PM
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