Fresh Taxes on Alcohol: Opposing Views

One week ago, coverage of a press release was published stating that new research has found that “boosting taxes on alcohol leads to lower rates of alcohol-related disease, injury, death and crime.” The headline of the news story covering the results contained words that are sore points for Dirty Tractor: “Alcohol-related problems” and “taxes.”

To be more specific, “alcoholism” is more of a touchy subject with us, but “TAXES” is a plain old four letter word.

The press release contained findings that led Bloomberg/BusinessWeek to say that doubling taxes on alcohol could result in a “35% reduction in alcohol-related deaths, an 11% reduction in traffic crash deaths, a 6% reduction in STDs, a 2% reduction in violence and a 1.4% reduction in crime.” But before we raise taxes to help society, let’s consider the source of the data: University of Florida students read 50 published papers on the subject matter and composed a study from a conglomeration of previous studies…

Funded by the Robert Wood Johnson Foundation for public health, which no doubt has a great cause, we cannot question the study any more than that. Rather, we question WHO would be affected the most by double the taxes on alcohol. The groups most likely to lessen their drinking from higher cost would be:

1. College Students
2. Underage Drinkers
3. Um.. that’s probably it

Furthermore, if taxes are increased substantially on alcohol, the market for bootlegging and illegal distribution could be opened back up. There must be data somewhere on the new market for low cost cigarettes after taxes on those went through the roof – now costing more than $8 per pack in some places. If it becomes more attractive for people to break out the stills again, what will THAT do? Moonshine is no good on the liver or people’s behavior- The study did not take prohibition-type schemes into consideration…

On the other end of the spectrum from the university study, the Distilled Spirits Council of the United States issued their own counter press release on the SAME day. In it, they state “this research does not account for the enormous economic impact a high tax policy prescription would have on the hospitality industry and its consumers. Not only would this proposal punish responsible adult beverage alcohol consumers, it would also hurt thousands of employees and small businesses in the hospitality industry in every town in America.” Another good point.

Raising taxes on alcohol in the Unites States is not the answer to help society; the repercussions for doing such would be felt across the world. Any benefits that might be gained could be outweighed by the increased health and societal risks of unregulated spirits and loss of people's livelihoods.

You want to get the numbers the news outlet published? Take a look at the age, sex and basic demographics of the people who cause the traffic deaths, STDs and crime. Focus on educating THEM.

Raising taxes would also have close to zero effect on that other touchy subject for us: Alcoholism.