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.

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By Christopher McCollum

Fresh news out of Russia indicates that Dmitry Medvedev is at it again, with the Kremlin raising the Vodka tax in Russia by nearly 100% for the New Year, and some people are supposedly rumbling that the Vodka industry will be Nationalized, all in an effort to curb the high alcohol-related death rates that have plagued the nation for the better part of the past century.

Reuters reports that this new effort to combat alcoholism also includes heavy excise duties on Beer, and there are also plans on the table to restrict when and where Beer can be purchased. This new legislation was engineered to come into effect right now, in the midst of Russian Orthodox Holiday celebrations which last the first week and a half of January, and is ridden with rampant alcohol use. The threat to institute duties on Vodka is also being discussed, and there also lies the possibility that Medvedev will follow in Mikhail Gorbachev’s footsteps by ordering cuts in the production of wine and spirits. If that happens, then it’s easy to assume that bootlegging will also pick back up, as it did in 1985 when Gorbachev issued his prohibitive order.

Medvedev has shown a prohibition stance in the past, and we started warning on Culture of Spirits back in October that he was soon going to be taking steps to slow the alcohol industry down in his country. It has finally happened, a few months later, and now we are left to see what the future holds in the Motherland of Vodka.

If Medvedev is determined to follow in Gorbachev’s footsteps, then we will be keeping an eye on the Russian news services, to track the number of deaths related to dirty bathtub Vodka. Additionally, one must wonder where the taxes from these hikes are going to be going, and we can only hope that they go to educating the populace on alcohol consumption and dependence. However, if the Kremlin undergoes a massive new remodeling, let’s see if we can track down where the funding comes from.

Australian news sources are reporting a perceived decline in alcohol purchases, with experts now urging politicians to support the Australian federal Government’s “Alcopops tax”. This tax, part of a strategy which adds a 70 percent tax hike on ready-to-drink products, was intended to curb binge-drinking by young drinkers.

Bacardi Breezers, Tropical Lime and Ruby Red Grapefruit flavors, are considered "Alcopops"

After being implemented, the tax does appear to have caused pre-mixed drink sales to fall as much as 26 percent; but could the information be skewed?

Alcopop refers to bottled mixed-drink malt or wine beverages, and is a general term which describes a variety of brands and beverages. However, the spirits industry does not condone the use of the term, fearing that obvious associations between “alcohol” and “(soda) pop” may bring negative press for being attractive to individuals below the legal drinking age.

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