By Christopher McCollum
A new statute is being proposed in Californians called the Alcohol-Related Harm and Damage Services Act of 2010. This proposal, which seeks to increase the state alcohol tax by astronomical proportions, was brought forth by Josephine and Kent M. Whitney, of San Diego, California.
Last year, I wrote an article about Russia raising its alcohol tax by sky-high margins, but if this Act in California goes through (it is going to require around 430,000 signatures on a petition just to go to a vote), President Medvedev will have to bow his head in submission, as his 300% tax hike will look like pocket change compared to the proposed 5,500% to 12,675% tax increase that the Whitney’s have authored.
In reading the details of the proposal, we see a helpful summary that California’s Attorney General wrote, which details what exactly will be taxed, and how much the tax will be; Beer’s six-pack tax will rise from 11 cents to $6.08 USD, a 5,527% increase. With that in place, say hello to $12 six-packs of Yuengling, and a lovely $15 for a six-pack of a good micro-brew, or about the price that a case costs here in North Carolina. The steepest tax increase of almost 13,000% is on 750ml bottles of wine, which aims to raise the tax from 4 cents to $5.11 USD per bottle, which has many people fearing that this will cripple the wine industry. According to one grower with a winery in Soledad, California, the most in-demand product on the wine market are mid-range bottles of $7 to $8. He fears that raising the price on those hot ticket items by an additional $5.11 will reduce the overall demand and put a tremendous strain on local wineries, eventually leading to job losses.