New California Alcohol Tax is Considered
California Alcohol Tax
With California is facing a $14 billion budget deficit, politicians and public policy groups are looking for ways to make up for the shortfall. One proposal is to increase the tax on distilled liquor, beer and wine.
The Marin Institute, an alcohol industry watch-dog, is one of the major proponents of this plan. According to Bruce Livingston, the group’s executive director, “Raising the alcohol tax for the first time in 16 years is a commonsense and fiscally responsible option to help close the budget gap. A simple 25 cents per drink increase would generate almost $3 billion in revenue.”
This potential revenue stream would make up about 20% of California’s budget deficit. While the plan sounds like it would make good financial sense for the state, it would essentially amount to a sin tax for all alcohol consumers, including the vast majority that drinks responsibly.