New Alcohol Tax Could Ease California's Budget Deficit by 20 Percent

Marin Institute Recommends Long Overdue Tax Increase

SAN RAFAEL, Calif., Jan. 7 /PRNewswire/ -- Marin Institute, the
California-based alcohol industry watchdog, recommended today that Governor
Schwarzenegger and state legislators raise taxes on wine, beer and distilled
spirits to help reduce the state's $14 billion budget shortfall.
(Photo: http://www.newscom.com/cgi-bin/prnh/20080107/LAM016)
"A simple 25 cents per drink increase would generate almost $3 billion in
revenue," said Bruce Livingston, MPP, executive director of Marin Institute.
"Raising the alcohol tax for the first time in 16 years is a commonsense and
fiscally responsible option to help close the budget gap."
The last alcohol tax increase in California in 1992 was only a penny on a
glass of wine and two cents per can of beer and shot of spirits. Since that
time, rising inflation has led to a 33% net decrease in state alcohol taxes.
(See chart above.) At the same time, alcohol-related problems have increased
dramatically and now cost the state tens of billions of dollars annually in
criminal justice, illness, injuries and myriad other costs.
"Each year thousands of lives in California are cut short or forever
damaged due to alcohol," said Michele Simon, JD, MPH, Marin Institute's
research and policy director. "By not requiring the industry to pay its fare
share of the massive costs of its products, the state is actually subsidizing
the alcohol industry. Now is the time for our elected leaders to find the
political will to push through a long-overdue alcohol tax increase," Simon
added.
For more information please visit http://www.marininstitute.org
CONTACT: Michael Scippa 415/257-2490
SOURCE Marin Institute

Michael Scippa of Marin Institute, +1-415-257-2490