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Monday, November 22, 2010

Hospitality Industry Says “Dime-A-Drink” Tax Hike Could Be Devastating

Despite the deceptively simple catch phrase, bars, restaurants, wineries and alcohol wholesalers think that the “dime-a-drink” proposal to increase the state tax rate on alcoholic beverages will cost them a lot more.

“They can call it 10 cents a drink. I call it $3 a case of beer,” said Jack Milani, a partner in Monaghan’s Pub in Baltimore County. Milani is legislative co-chair of the Maryland State Licensed Beverage Association. The trade group represents about 1,400 restaurants, bars and package liquor stores, and times have been hard, he said.

“A lot of our people haven’t fully recovered from the last two years of the economic downturn,” Milani said. “We’ve lost establishments in the state.”

Currently, the state tax is 9 cents per gallon on beer, 40 cents per gallon on wine and $1.50 per gallon on spirits. The increase would add roughly 10 cents per “drink” across the board. While this seems small, calculations have shown that the actual taxes would increase by 700% to 1,300%.

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8 comments:

Anonymous said...

in 2006 we eleceted our current gov
his first action - raise sales tax from 5% to 6%, and cigg tax
he gets re-elected and this happens

J.Albero said...

anonymous 9:10, you need to be more clear here. WHO are you talking about?

Anonymous said...

Martin O'Malley of course

Anonymous said...

Let the boozers pay for their booze. I like it!

Anonymous said...

11:25 remeber eventually they will tax somehting you care sbout

first it was tobacco, now alchohol

next will be soda, burgers, other non helathy things. then they will start on fruits, vegies, ect

it needs to be stopped someplace, smokers are laughing now

Anonymous said...

I told you, loose cannon.

Anonymous said...

I don't know about anyone else but my cup has run dry, bone dry.

Anonymous said...

Tax the alcohol, tax the cancer sticks! I don't care at all. Let's use the money to pay for some of the damage done by both.