A 25 Cents Beer Tax Would Solve Governor Brown’s $1.6 Billion Budget Deficit

PR Newswire, SAN RAFAEL, Calif., Jan. 10, 2017

SAN RAFAEL, Calif., Jan. 10, 2017 /PRNewswire-USNewswire/ — Alcohol Justice called today for California Governor Jerry Brown and state legislative leaders to raise excise taxes on beer by 25 cents a drink to wipe out the state’s projected $1.6 billion budget shortfall.

“A simple 25 cents per beer tax hike generates $1.7 billion in revenue for the general fund and wipes out the Governor’s projected shortfall,” stated Bruce Lee Livingston, Alcohol Justice Executive Director / CEO. “A beer tax increase is common sense, fiscally responsible, and long overdue.”

The last alcohol tax increase in California was in 1992, for just a penny per glass of wine and two cents per can of beer or shot of spirits. Since then, rising inflation has led to a 33 percent actual decrease in state alcohol tax revenue. California state and local government costs for alcohol-related problems are $13.7 billion annually, including healthcare and criminal justice expenses, adding to the state’s economic woes.

“Year after year thousands of California lives are cut short or forever damaged due to alcohol,” said Michael Scippa, Alcohol Justice’s public affairs director. “The human toll and economic costs are staggering. And each year alcohol taxes are not raised translates into a government subsidy of Big Alcohol. It’s time for our state leaders to add a beer tax increase to any budget-balancing plan.”

“We also want California counties and cities looking for alternatives to budget and service cuts to be able to raise a local alcohol tax,” Livingston added. “Reasonable alcohol taxes and fees, adjusted annually for inflation, at all levels of government could be used to fund programs of support and prevent future losses.”

Visit the Alcohol Justice Alcohol Tax Calculator at AlcoholJustice.org for more information on increasing income from raising alcohol taxes.