Stay Informed

Sign up for news & alerts

Already signed up?
Login here

take action
For every $1 states spend dollar sign on substance misuse and addiction, 94 cents go to shovel up the consequences instead of for treatment and prevention. TELL YOUR LEGISLATORS

What Can I Do?



Continuing Education
Free online courses for addiction counselors LEARN ONLINE

Get Help
Need alcohol or drug help for yourself or someone else? GET HELP

 

For the Health (and Economy) of the Nation: Time to Tax Alcohol Fairly
February 11, 2009

Share Share Email
Email
Print
Print
SubscribeSubscribe
Commentary
by Steve Heilig

Like many people with a drinking problem, our nation itself is in denial about what alcohol abuse costs. With a looming 'financial Armageddon' upon us, it's time we confront the issue.

I started drinking alcohol to excess at the age of 13. Drinking at this tender age is not uncommon. Among my friends, it was easy to steal a bit of liquor from bottles in our parents' ample bars, and to go to the beach or hills and drink until we vomited. By high school, some of us were serious drinkers, and by college some of us were alcoholics. Some of us didn't survive much longer due to accidents, and some died from causes related to alcohol later.

My peers and I saw drinking as cool, partly because so many of our heroes in sports, music, film and television did it, and there were fun-looking advertisements for drinking everywhere. Given my genetic and family history of alcoholism, I was fortunate that I escaped serious harm, and to this day can enjoy a glass of wine with dinner. But I am very aware how much alcohol use and abuse is ingrained in American teen culture and onward.

As with tobacco use, the patterns established in youth can determine one's relation to alcohol for a lifetime. Upwards of 90 percent of both smokers and alcoholics start using in their teen years. Most, like me, can experiment without long-lasting problems, but many cannot. Thus, addiction -- especially to tobacco and alcohol -- remains what the American Medical Association has identified as our nation's most pervasive private and public health problem.

Alcohol abuse costs us a lot. Just how much is unlikely to ever be fully determined, but a local organization has recently made a valiant attempt. Looking just at my home state, California, the Marin Institute, a private non-profit organization devoted to improving alcohol-related policy and reducing harms from drinking, released a 2008 report titled "The Annual Catastrophe of Alcohol in California." (Disclosure: I serve on the Marin Institute's volunteer board of directors).

The report makes for sobering reading. Marin found that the total economic cost to California from alcohol-related causes is $38 billion per year -- $18 billion for illness, $8 billion in traffic/DUI costs, $8 billion for crime, and $4 billion for injuries. This is about twice the costs attributed to tobacco use. One can quibble with the numbers, but there is no denying that the societal burden imposed by alcohol use is substantial. For the nation as a whole, the costs are astronomical.

Addressing California's huge budgetary shortfall, Gov. Arnold Schwarzenegger has proposed a 5-cents-per-drink tax increase on beer, wine, and distilled spirits. This would raise more than $878 million over the next 18 months, and be targeted at funding some crucial and under-funded services, including but not limited to addiction treatment.

California alcohol taxes have not increased since 1992, and then by only a penny. Opponents argue such taxes are onerous, or even akin to Prohibition. But taxing tobacco to pay for health costs is now widely accepted, and in fact President Obama has just expanded children's health coverage with a substantial increase in such taxes.

On a national level, revenues from a similar alcohol tax increase would be very substantial. Perhaps most important, "Increasing alcohol taxes saves lives; that's the bottom line," as a recent study by Wagenaar and colleagues from the University of Florida noted in the American Journal of Public Health. 

We should acknowledge the uncomfortable fact that 'Big Alcohol' is no angel, having long used 'Big Tobacco'-type tactics to market alcohol to kids -- most recently in the form of "alcopops", sweet alcoholic drinks with an obvious appeal to young drinkers. One of the big alcohol companies, MillerCoors, recently settled with a group of state Attorneys General and will stop marking alcohol-fueled "energy drinks," another category of alcoholic beverages favored by teen drinkers. Again, as with tobacco, there is long history of alcohol marketing to teens in sneaky guises, including via sporting events and youth-targeted media.

A nickel a drink isn't much -- the Marin Institute actually feels 25 cents per drink is a more fair and supportable tax -- but would raise a few billion dollars per year. While this would not solve our nation's financial problems, it sure would help. Given the medical, public health, and economic facts, a fair increase in alcohol taxes is long overdue. We should take a similar approach as we have with tobacco, and use the funds to prevent alcohol abuse and pay for its related harms. After all, not every kid will be as lucky as I was.


Steve Heilig is co-editor of the Cambridge Quarterly of Healthcare Ethics and on the staff of the San Francisco Medical Society. Heilig was a Join Together Fellow and Advisory Board member, and currently serves on the Marin Institute's volunteer board of directors.

Join Together publishes selected commentary relevant to alcohol and drug policy, prevention and treatment. The views expressed are solely those of the author.

COMMENTS ON THIS ARTICLE:

Posted by John from Oceanside on 20 Feb 09 01:51 PM EST
The 5-cent-a drink tax was droped from the new budget when the alcohol lobby decended on Sacramento. The last time I looked only one person in the legislature didn't take big dollars from the alcohol companies. In the new budget they kept substance abuse treatment and prevention at the same level of funding as last year for the next 17 months. Good news, but we still need the tax. Maybe if it goes into the General Fund instead of earmarking it, it would be more acceptable.

Posted by Richard of Denver on 21 Feb 09 10:35 PM EST
Twenty cents a big bottle or a dozen beer, ten cents a small bottle or a six pack, and five cents a drink in restaurants and bars would go far in supporting alcoholism education and rehabilitation and for compensating victims of drunk drivers. Anyone who complains about such a small cost increase is probably drinking too much anyway.

SUBMIT A COMMENT:

Note: Comments are now held for moderator approval. More info

Name:

Comment:
(limit 250
words)

Enter this word
(help):
Change

GUIDELINES: 
Please keep comments on-topic, courteous, clean, non-commercial, and within the word limit.
Read the complete guidelines