- Tuesday 09 February / 09h47 (Paris)
| Wednesday, May 06, 2009 | 12:38 |
Washington Legislature Threatens Hospitality Industry With Stealth Alcohol Tax Hike - Hidden Tax Will Cost 1,100 Hospitality Sector Jobs
(Drinks Media Wire) - OLYMPIA, WA – The Washington State Legislature’s budgetary “money-grab” from the State Liquor Control Board (WLCB) will tomorrow force the agency to raise liquor prices substantially – a move the Distilled Spirits Council called a “stealth tax” that will have consumers paying up to $2 more per bottle come August.
“Legislators aren’t pulling the wool over anyone’s eyes here – this is a tax,” said Council Vice President David Wojnar, noting that the Legislature took $80 million from the WLCB’s successful revolving fund – forcing the agency to propose a major price increase to shore up the difference. “By forcing the agency to raise prices on liquor, state legislators have craftily avoided leaving their own fingerprints on what is essentially a major tax hike. This stealth move violates the spirit of I-960 which would have required a two-thirds vote by the Legislature to enact a liquor tax increase.”
A recent economic analysis by Council Chief Economist David Ozgo showed that increasing the liquor excise tax by $1.15/liter, as proposed, will raise the state’s implied overall excise tax rate to $23.86/gallon – a rate double the control state average and more than 6 times higher than the average rate in states without state-run systems. According to the analysis, most bottle prices will increase by 5.6% or more. On a 1.75 liter bottle size, the size most popular with budget-conscious consumers, this would mean a $2 per bottle increase. The analysis also showed that the reduction in economic activity would destroy 1,100 hospitality sector jobs.
“When the hospitality industry is already struggling, now is the worst time to increase liquor prices,” said Wojnar, citing 1,600 state hospitality jobs lost in the last year due to the recession. “Policymakers need to understand that a tax on alcohol is a tax on the entire hospitality industry – negatively impacting restaurants, hotels, bars, nightclubs, liquor stores, and the thousands of men and women they employ.
Contact
| Name: Ben Jenkins |
| E-mail: |
| Web: http://www.distilledspirits.org |
| Company: Distilled Spirits Council |
| Address: 1250 Eye Street NW - DC 20005 Washington |
| Country: UNITED STATES |
| Phone: +1 202-682-8840 |
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