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Beer Tax Eyed to Pay for Healthcare Reform
May 26, 2009

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News Summary

Senate lawmakers are looking at raising the federal tax on beer and soft drinks as part of a funding package for national healthcare reform, which could cost the nation up to $1.5 trillion over 10 years, the Associated Press reported May 20.

Legislators are primarily looking to raise taxes on lifestyle choices that contribute to increases in healthcare costs. A tax that would add about $2 to the price of a case of beer was included on a briefing document circulated to members of the Senate Finance Committee this week; the proposal calls for raising the federal tax from 33 cents per six pack to 48 cents.

Taxes on wine (up from 21 cents per bottle to 49 cents) and liquor (up 40 cents per fifth, to $2.54) also are being considered, as is a new 3-cent tax on soda and other sugary drinks fingered in the rising rate of obesity in the U.S.

Lawmakers also are mulling raising income taxes on Americans who receive generous health benefits from employers.

Committee chairman Sen. Max Baucus (D-Mont.) plans to use feedback on the proposals to help draft healthcare-reform legislation, which could be introduced within a few weeks. Lobbyists from the alcohol industry and other affected businesses are already working to derail the tax proposals.

"Singling out wine for higher taxes to reform health care is misguided because wine is part of a healthy diet and lifestyle for millions of Americans," said Robert P. Koch, president of the Wine Institute.

COMMENTS ON THIS ARTICLE:

Posted by Hermann T. Meyer on 27 May 09 11:39 AM EDT
If the lawmakers want to reduce lifestyle related damage and social cost they must try to rise taxes as much as possible. They shouldn't listen to the alcohol industry. It will never agree to any measure that reduces it's profit.

Posted by Terrance Newton on 28 May 09 11:57 AM EDT
For years, the substance abuse treatment field, should have been going after taxes raised on liquor, wine and, beer to pay for the damages caused by their product. It was fitting to do this with the tobacco industry and, it should have been done to the liquor industry. Now we have an underfunded field, that is on death's doorstep, while prisons, jails, and law enforcement have been taking more and more of the State's and Federal budgets. Now the money will go to some other cause while the consequences of drug and alcohol use continue to rise.

Posted by Rob on 31 May 09 10:37 AM EDT
Let's be fair: slap a tax on cocaine, marijuana, heroin, methamphetamine and other drugs of abuse. You won't collect much, but you will have further grounds for prosecution and might get some of the money that now goes to law enforcement in asset forfeiture. After all, they got Al Capone for tax evasion, not rum running. And let's recognize that AODDs are chronic conditions and that sustaining recovery is just as important as achieving it in the first place. Relapse prevention and recovery support services also prevent the waste of money spent on treatment that doesn't last.

Posted by Shattah206 on 01 Jun 09 10:54 AM EDT
"Lawmakers also are mulling raising income taxes on Americans who receive generous health benefits from employers." Does this sentence alarm anyone else?!

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