Spring Break
New beer tax makes no sense for Oregon
Issue date: 3/2/09 Section: Forum
As if going out to the bars and late-night runs to Circle K weren't already expensive enough, five Oregon lawmakers want to increase the tax on beer by 1,900 percent.
The bill they plan to introduce, titled Oregon House Bill 2461 (or HB 2461), would mean a hefty tax swell for beer connoisseurs and a possible drastic dry spell for brewers.
The point of the tax would not be necessarily to discourage lush behavior in the binge drinking department, or "untreated substance abuse," which, according to the bill, costs the state $4.15 million dollars in lost earnings, $8 billion in health care and more than $1 million for law enforcement costs.
Instead, the bill's creators claim that the genius and the very idea behind the bill would be the $300 million or so that would be raised for substance abuse awareness and treatment for the state of Oregon.
$300 million toward substance abuse awareness and treatment sounds great until you see the price tag for beer-drinkers. In order to keep profit margins constant, brewers would be forced to seriously increase their prices to distributors, retailers and drinkers.
Opponents of the bill have claimed that this could raise the price of a pint of beer by as much as $1.50 and would be met with job slashes in the restaurant and brewing industries.
Supporters, however, say that this bill is way overdue. Oregon ranks 49th in beer taxation across the nation, according to HB 2461, and the tax on beer hasn't been raised in 32 years.
Would frat parties and Corvallis weekends be hurt by this hypothetical situation? We think not. If the law passes, students will find a way to drink regardless, whether it means consuming cheaper beer, staying in for the night instead of going out to the bars, or merely switching to mixed drinks and shots as opposed to spending their evenings doing keg stands.
It would also mean the "poor college student" standards would be raised. Students who gripe about having no money but blow $50 on a tab at Clod's or the Peacock might actually start to feel the burn in their pockets and may end up seeing more evenings in studying as opposed to out. It could draw a thicker line between the "haves" and the "have nots" of OSU; those who can afford to go out and party and those who just can't, since beer is generally the cheapest form of alcohol you can get your hands on at the bars ($1 pints of Pabst anyone?).
And why beer? Obviously, every brewer affected will whine and point fingers at liquor distilleries and wineries, asking why they couldn't have taxed them instead. Plenty of "untreated substance abuse" problems stem from harder forms of alcohol, so why should beer bear the brunt of the tax?
Editorials serve as a platform for Barometer editors to offer commentary and opinions on issues both global and local, grand in scale and diminutive. The views expressed here are a reflection of the editorial board majority. Disagree? E-mail a letter to the editor or guest column to editor@dailybarometer.com.
The bill they plan to introduce, titled Oregon House Bill 2461 (or HB 2461), would mean a hefty tax swell for beer connoisseurs and a possible drastic dry spell for brewers.
The point of the tax would not be necessarily to discourage lush behavior in the binge drinking department, or "untreated substance abuse," which, according to the bill, costs the state $4.15 million dollars in lost earnings, $8 billion in health care and more than $1 million for law enforcement costs.
Instead, the bill's creators claim that the genius and the very idea behind the bill would be the $300 million or so that would be raised for substance abuse awareness and treatment for the state of Oregon.
$300 million toward substance abuse awareness and treatment sounds great until you see the price tag for beer-drinkers. In order to keep profit margins constant, brewers would be forced to seriously increase their prices to distributors, retailers and drinkers.
Opponents of the bill have claimed that this could raise the price of a pint of beer by as much as $1.50 and would be met with job slashes in the restaurant and brewing industries.
Supporters, however, say that this bill is way overdue. Oregon ranks 49th in beer taxation across the nation, according to HB 2461, and the tax on beer hasn't been raised in 32 years.
Would frat parties and Corvallis weekends be hurt by this hypothetical situation? We think not. If the law passes, students will find a way to drink regardless, whether it means consuming cheaper beer, staying in for the night instead of going out to the bars, or merely switching to mixed drinks and shots as opposed to spending their evenings doing keg stands.
It would also mean the "poor college student" standards would be raised. Students who gripe about having no money but blow $50 on a tab at Clod's or the Peacock might actually start to feel the burn in their pockets and may end up seeing more evenings in studying as opposed to out. It could draw a thicker line between the "haves" and the "have nots" of OSU; those who can afford to go out and party and those who just can't, since beer is generally the cheapest form of alcohol you can get your hands on at the bars ($1 pints of Pabst anyone?).
And why beer? Obviously, every brewer affected will whine and point fingers at liquor distilleries and wineries, asking why they couldn't have taxed them instead. Plenty of "untreated substance abuse" problems stem from harder forms of alcohol, so why should beer bear the brunt of the tax?
Editorials serve as a platform for Barometer editors to offer commentary and opinions on issues both global and local, grand in scale and diminutive. The views expressed here are a reflection of the editorial board majority. Disagree? E-mail a letter to the editor or guest column to editor@dailybarometer.com.
Note: writers will not reply to comments.
Viewing Comments 1 - 2 of 3
Steve
posted 3/02/09 @ 7:53 AM PST
I understand that the increase is only 1800 percent, not 1900 percent. The 1900 percent is the total (1800 + 100(current) = 1900).
Yes, it is way too much. (Continued…)
Bob
posted 3/06/09 @ 9:38 AM PST
I have to agree with Steve here that what this will hurt most is the micro brew industry that is so big in Oregon. This will hurt the occasional drinker harder than the binge drinkers, as occasional drinkers will drink a beer or glass of wine with a meal, while binge drinking may also include beer and wine, is normally supplanted with a hardy amount of hard liquor. (Continued…)
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