Bad News For Clubs,Drinkers,& Musicians

Smiley Roberts · Post by **Smiley Roberts** » 24 May 2005 10:21 am

(I guess this would,indirectly,be related to musicians.)
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Bar Tabs Going Up As States Tax Alcohol
May 24, 2005 7:29 AM EDT
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CLEVELAND - If Doug Petkovic has to charge more for a cold one, running his upscale restaurant in this blue-collar city is going to get even tougher. But that's what Petkovic will have to do if the Legislature decides to double the beer tax to help ease the state's money crunch.

"Any type of price increase makes it more difficult for people to come here and dine," said Petkovic, who owns Theory in the up-and-coming Tremont neighborhood. "In my eyes, that sort of taxation amounts to almost persecution."

Not surprisingly, drinkers, brewers and distributors feel like Petkovic does. The plan, however, does have supporters: Gov. Bob Taft, who proposed it to help balance the $51 billion two-year budget, and those who point to the social and economic costs of alcohol abuse.

More and more states are considering higher alcohol taxes after years of raising cigarette rates.

This year, Kentucky and Washington state hiked their liquor tariffs. Montana, Indiana and North Dakota rejected higher beer taxes.

Texas is still considering an increase, which would go to help pay for public schools. And Ohio lawmakers must decide what they're going to do before the new fiscal year starts July 1.

Taft is calling for the excise tax to go from 18 cents to 36 cents a gallon on alcoholic beverages other than liquor, notably beer and wine. The cost of a beer would go up depending on how each manufacturer and retailer passes along the tax. It most cases it would be pennies.

Overall, the increase would add an additional $50 million for the state's general fund. Ohio received $58.8 million in tax revenue from alcoholic beverages in the 2004 fiscal year.

Kentucky's General Assembly in March OK'd increasing the wholesale liquor tax from 9 percent to 11 percent, which is expected to raise $8.8 million this fiscal year. Washington state's budget is expected to get $50 million from its $1.33-per-liter tax on hard liquor.

Kentucky's increase - the first in 50 years - allowed lawmakers to lower income taxes for the state's poorest families, said Sen. Charlie Borders, the Republican chairman of the budget-writing committee.

"Our tax increase on liquor was minuscule compared to what some people thought it should be," Borders said. "Believe you me, we've had no grief from the liquor industry because they've been treated very well in my opinion."

Ohio's proposed beer tax increase is part of a broader plan that would eliminate taxes on business equipment and inventory and lower business income taxes, among other things.

Excise taxes, sometimes called sin taxes, are a more palatable way to raise revenue for states than a broader tax, said Bert Waisanen, fiscal analyst for the Denver-based National Conference of State Legislatures.

Part of the reason is the moral message. The Center for Science in the Public Interest, a Washington-based nonprofit, contends that hiking alcohol taxes is a good way to fight alcohol abuse.

"Tens of millions of dollars a year already are spent marketing alcoholic beverages to underage consumers," George Hacker, director of the center's Alcohol Policies Project, said in a statement posted on the center's Web site. "Lower taxes and lower prices will only further entice young people to drink."

Businesses, however, are warning about the consequences.

Columbus Distributing Co., which handles Anheuser-Busch, may have to cut its work force if a tax increase translated into a drop in demand, said Paul Jenkins, the company's president.

"It is paid ultimately by the consumer," Jenkins said of a higher tax. "It's just the way the system works."

Sellers are worried, too, especially those near Ohio's borders. With the increase, Ohio's beer tax would be well above that in neighboring states.

"It's going to fall hard on the small guys," said George Thompson, owner of D&J Carryout, an independent seller of beer and wine in Toledo. He estimated 80 percent of his sales comes from beer.

Fred Lisy, downing a draft with lunch at Becky's, a popular tavern near Cleveland State University, said a few more cents probably won't deter him from buying brew - but that doesn't mean he likes the idea.

"It's just the whole principle of being taxed like that," he said. "It's distasteful."

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©¿© It don't mean a thang,
mm if it ain't got that twang.
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Marty Pollard · Post by **Marty Pollard** » 24 May 2005 11:17 am

...the social and economic costs of alcohol abuse.

Then just imagine the windfall from taxing those w/destructive political views!!!

Sorry b0b!
*self-flagellation*

Ray Minich · Post by **Ray Minich** » 24 May 2005 11:54 am

"We just can't have anything nice!" (Jeff Foxworthy)

Bobby Lee · Post by **Bobby Lee** » 24 May 2005 12:16 pm

Have they taxed the music yet?

Mel Mandville · Post by **Mel Mandville** » 24 May 2005 1:07 pm

Yeah... go Montana !

Tony Prior · Post by **Tony Prior** » 24 May 2005 1:18 pm

reading this is very depressing, I was only going to drink 1 beer tonight , instead I'm gonna have two..

t[This message was edited by Tony Prior on 24 May 2005 at 02:29 PM.]

Alvin Blaine · Post by **Alvin Blaine** » 24 May 2005 4:00 pm

Have they taxed the music yet?

They did in Nevada a few years ago. They have an "Entertainment Tax" of 15%.
It covers everything from bands playing in the lounges to concerts, plays, dance shows. It's passed on to the consumers through higher prices on drinks, tickets, etc.

Currently the strip clubs and brothels are fighting the tax, saying that what they do (striping and prostitution), is a First Amendment right of free expression and not entertainment.
I think I could say the same for some of the stuff I play. It's not entertainment, it's my free expression.

Lefty · Post by **Lefty** » 24 May 2005 4:40 pm

Taxes!!.....What next? Toilet paper!!!!!
Lefty

db · Post by db » 24 May 2005 6:32 pm

"SIN-TAX"
You know that they Really, Really, want to tax "Ladies-Of-The-Evening"!
They just can't figure out how to do it yet!
The big problem is that they'd have to start by making it legal!
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Dan Balde
U-12/8&5, S-7/D 3&1, S-6/E,A & G3[This message was edited by db on 24 May 2005 at 07:38 PM.]

Les Anderson · Post by **Les Anderson** » 24 May 2005 6:34 pm

<BLOCKQUOTE>quote:<HR>Alvin Blaine Wrote:

It's not entertainment, it's my free expression.<HR></BLOCKQUOTE>

Well I'll be gall darned. Thank you Alvin, you have given me my answer to my critics when they throw rotten eggs at me.

Why don't your state governors do like they do in Canada; just keep raising the gasoline tax so “everyone gets nailed” whether they drink or not. That way, the government also hits a windfall when the price of fuel sky rockets.

Jeez, we are away ahead of you Americans when it comes to ways for our governments to gouge its citizens.

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(I am not right all of the time but I sure like to think I am!)

Gene H. Brown · Post by **Gene H. Brown** » 2 Jun 2005 8:42 pm

I'm a non-smoker, but I used to be a smoker and it really gripes me to see the government doing everything they can to make smokers quit. Why don't they try and get everyone to quit drinking booze, ya wanna know why, because 99% of the politicians are boozers. And when they finally get everyone to quit smoking, how are they going to make up the billions in taxes every year from the sale of cigarettes, I guess maybe the air you breathe is next, eh?

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If You Keep Pickin That Thing, It'll Never Heal!

Rich Weiss · Post by **Rich Weiss** » 2 Jun 2005 9:53 pm

<BLOCKQUOTE>quote:<HR>Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.<HR></BLOCKQUOTE>

Larry Hamilton · Post by **Larry Hamilton** » 3 Jun 2005 5:40 am

Amarillo, just voted down a no smoking policy for every public place in town. This was to include bowling centers, bingo halls and bars and night clubs (private or not). Most people smoke in bars. If the people quit going to clubs because they can't smoke, the club loses business and then there goes the bands and some place to play. I don't smoke but I do get a chance to play from time to time. The country music scene here sucks at best. Take away my "ace in the hole" places to go sit in for free and have a good time and my playing opportunities are down the toilet.
the do-gooders need to leave us heathens alone. Just my little opinion.

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Keep pickin', Larry

Ron Page · Post by **Ron Page** » 3 Jun 2005 8:40 am

The notion that higher prices and more taxes will deter youth from drinking fails to recognize that when you're young and carefee--e.g. no mortgage, no car payment, no kids to feed, etc. -- the tax on your beer doesn't matter a hoot!

The government encouraging us all to stop smoking and drinking while they, by virtue of excise taxes, partners with the producers is ludicrous; completely fraudulent. If you care to argue the point, check out what has become of the "tobacco settlement" funds in your state. Think it went to pay for health care for smokers, or abstinence advertisements? Think again.

There are lots of things I like about Bob Tax, err Bob Taft's tax reform plans but this isn't one of them. It will probably cost me less than a buck a week, but it's the principle.

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HagFan

Ken Lang · Post by **Ken Lang** » 3 Jun 2005 8:14 pm

What bothers me the most is when elected officials promise more than they can deliver. The hole in the wallet has to be filled, and we get to pay it just to satisfy their stupid promises.

They can't live within a reasonable budget, like the rest of us HAVE TO, and any talk of cutting back on programs is met with derision by those subject to it.

The free ride is nearly over for those people. They want more than we can reasonably give.

It is time to take America back, to give the freeloaders the lesson of self dependance and personal responsibility.

And to keep their hands out of our pockets.

John Billings · Post by **John Billings** » 4 Jun 2005 11:54 am

One of these days, they're gonna legalize pot. Just so they can tax the heck out of it. Sin taxes.

Post by **b0b** » 4 Jun 2005 11:57 am

This is totally unrelated to music so I'm closing it.