
Oh, don’t get me started! Many of you that know me know that I am a Libertarian and a fiscal conservative, but no matter what color pajamas you wear; the type of tax-mania that is currently being proposed on beer by certain members of the West Virginia Legislature has to have you seeing red!
Ok, so here’s the story. Delegate Bill Hamilton from Upshur County has had to bear the unfortunate reality that his son has a substance abuse problem. He doesn’t really say which substance, I am sure it’s not wood, paper or plastic. Anyway, this guy has had a rough ride and one of his “pet-projects” is to build substance abuse treatment centers in all (way too many) 55 counties in the state. First of all there are a few of those 55 counties out there that barely have 55 people, but that’s another rant!
Delegate Hamilton’s idea is obviously not “good-enough” because if it were, its benefits would be self-evident and this guy could justify the project be undertaken and paid from the general treasury. No, this is a “pet-project”… This guy needs to find a “whipping boy”, so he (and his co-sponsors) want to tax the beer consumer and only the beer consumer! They call it a barrel-tax, or a tax on beer, but folks it’s a tax on the beer consumer! Barrels can’t reach in to their pockets and whip out the 22 bucks that they will need to fulfill the tax burden. Please… We all SHOULD know by now that all taxes on production, corporations, excises and tariffs are passed through to the consumer; so let’s quit talking about “the barrel” for a minute…
Currently “we” are taxed at $5.50 per barrel (31 gallons). They will quickly remind you that the tax has been $5.50 since 1966, but that fact isn’t relevant to this particular issue. The original bill HB4253, proposed the tax be doubled. Then an amended version by almost the same group of thieves, proposed a quadrupling of the tax! Most politicos that I know feel that this higher number was a hedge so the debate would cause an acceptance of the original bill as a compromise. “Honey, would it be OK if I went to Aruba with the four hotties from the office… No? Ok then I will only go with two of them…”
The other issue that frosts me here is that the entire tax burden for this “Pet Project” will be put on the beer consumer only! And another thing- The substance abuse problems in this state are much more “prescription drug-abuse and Meth” centric than they are alcohol related. But even a tax levied on all alcohol for such a folly would be wrong. This guy needs to make a case for his program and attain widespread funding from the general treasury; heck I might even support it then!
Here are verbatim responses from representatives of the West Virginia Beer Wholesalers Association that I received upon request…
“West Virginia Beer Wholesalers are against any increase on the beer excise tax. This is a tax on the hard working men and women in West Virginia. In this difficult economy, the American beer consumer pays more than 40 percent of the total tax burden on beer. Nearly 50 percent of all beer in the U.S. is purchased by consumers with household incomes less than $50,000. An increase in excise taxes would impact hardworking men and women who are facing difficult times in this challenging economy. West Virginia Beer Wholesalers feels we should not be single out to pay for the substance abuse programs. West Virginia beer distributors are deeply rooted in their community and provide good wages and company provided benefits including healthcare to their employees.” – James Wilson
“As it now stands the WV beer drinker pays more in taxes than almost all of those in neighboring states. Raising taxes will raise the ultimate price. Higher prices here will cause many consumers to go across the border to buy beer in the cheaper areas and we will suffer lower sales and probably some falloff in tax revenue by virtue of the out of state purchases. There are some studies that show that when consumers cross state lines to purchase products because a product is cheaper in the one state there is an additional loss of sales of other items because when the out of state purchase is made the consumer frequently buys other things at the same time. For example if someone comes to WV because our cigarettes are cheaper than Ohio they may and often do buy other goods at the same time. In other words, our border county retailers will suffer a loss of beer sales if the quadruple tax increase is adopted. Those retailers will also suffer a loss in sales of other products at the same time. I believe that approximately 50% of our total population lives in our border counties. The increase in tax alone will drive up the price of beer and that will reduce the actual sales and thus the state will have a diminished return on the base amount of the existing tax. The tax is fundamentally unfair for another reason. Raising taxes on beer (without looking at spirits, wines, and/or drugs for revenue) to fund drug treatment is sort of like placing a tax on bicycles because we are having too many car wrecks. We don’t contest the need for drug treatment centers. There is an epidemic and something must be done. There should be more of a focus on the demand side instead of attacking a small segment of the supply side as the fix for a social problem of huge proportions. We are willing to work with all the interested parties to fashion a meaningful plan to address the issue but to single out the beer industry and tax the beer drinker to pay for treatment of those addicted to hard drugs like crack cocaine, meth, heroine, and Oxycontin is illogical and short sighted.” – James Casey
Click here to read the bill and see the sponsoring Delegates…
All of us need to make our feelings known to our own delegates and Senators!