Tuesday, March 9, 2010
The House Taxation Committee is considering a fair piece of state legislation that would increase taxes on alcohol and redistribute the revenue toward more funding for services catering to the mentally ill and disabled.
With substantial budget cuts being made within the state, the Committee proposed doubling the gallon tax on alcoholic beverages in order to offset the growing deficit.
Change in alcohol tax:
$0.18 per gallon to $0.36 per gallon for beer.
$0.75 per gallon to $1.50 per gallon for wine with 14 percent alcohol or more.
$2.50 per gallon to $5.00 per gallon for hard alcohol.
That results in about an extra $0.55 for a 30-pack of beer and $0.75 for a handle of hard alcohol.
The bill would change the tax on alcohol from $0.18 per gallon to $0.36 per gallon for beer, $0.75 per gallon to $1.50 per gallon for wine with 14% alcohol or more and $2.50 per gallon to $5.00 per gallon for hard alcohol. That would result in about an extra $0.55 for a 30-pack of beer and $0.75 for a handle of hard alcohol.
The tax would first be imposed upon those who manufacture, sell, purchase or receive the liquor; the tax has already been paid by the time consumers are ready to buy. Therefore, as long as wholesalers do not jack up prices, the tax hike wouldn’t be too significant for the individual consumer.
According to the bill, the Disabilities Supplemental Programs Fund and the Community Mental Health Centers Supplemental Programs Fund would each gain $10.9 million, which would be 50 percent of revenue, from the alcohol per gallon tax. The Department of Social and Rehabilitation Services would distribute these funds in providing services to the developmentally disabled and the mentally ill.
In considering the bill, the Taxation Committee is generating ideas that benefit programs for those with mental health issues and disabilities. But, it is also fair to ask that they look to ways other than just increasing taxes on alcohol to help generate more profit.
Philip Bradley, CEO of the Kansas Licensed Beverage Association, said that the alcohol industry gives the state of Kansas more of its income for every dollar that is spent in alcohol service establishments than any other business. Bradley said that it seems to be arbitrary to ask for any more.
Although the Taxation Committee should expand its plans to boost revenue, the programs they have chosen to develop and benefit are worthy of the extra cents. The alcohol tax has also not been increased since 1977.
Rep. Pat Colloton said that community mental health centers have seen a $20 million cut in the last year and a half and that, due to layoffs, more than 4,000 of Kansas’ developmentally disabled patients are on waiting lists to receive care.
A potential increase in taxes on alcohol isn’t bad when the benefit for the mentally ill is considered. A few extra cents for alcohol is not too much to ask, especially when the money is going towards programs that provide people with aid who are in desperate need for it. However, it is imperative that grocery, liquor and convenience stores don’t take advantage of this potential piece of legislation and raises their prices unfairly for consumers.
— Stefanie Penn for The Kansan Editorial Board
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Comments
Editorial: Benefits of proposed alcohol tax outweigh costs
KUJayhawk- I like the idea of a fast food restaurant tax. Sure, pro business people will complain that a fast food tax would hurt small business, but how many locally owned and operated fast food restaurants are there (franchises don't count). It would hurt me a little, because I would have to pay more for my sweet, delicious Taco Bell, but in the long run it would be better for the state since they might have enough money to close the budget gap.
Editorial: Benefits of proposed alcohol tax outweigh costs
"The tax would first be imposed upon those who manufacture, sell, purchase or receive the liquor; the tax has already been paid by the time consumers are ready to buy. Therefore, as long as wholesalers do not jack up prices, the tax hike wouldn’t be too significant for the individual consumer."
Ahhh. The beauty of "kansanomics," clearly this is a wholesaler tax that will never find its way to the average Joe-six-pack. What's not to like about that? Just about everybody wins!
http://northernbrewer.com/brewing
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