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.”
Proponents of increasing taxes on alcohol point out that Maryland has one of lowest state tax rates in the country. It was last raised in 1972 for beer and wine, and in 1955 for distilled spirits.
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%.
The current state tax is an excise tax, which is applied at the distributor level.
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really? with all the anti smking legislation in the us currently how does an 8 year old study hold water?
ReplyDeleteshow us current stats
After raising taxes on cigarettes it has created an illegal black market that will only further fuel more money for gangs and other organized crime to profit even more, and create more crime.
ReplyDeleteThe shape of the state of Maryland provides many the option to cross state lines to avoid the higher taxes.
Way to go big government.
They are just blowing smoke. The tax on spirits and beer has not been raised since the 1970s. They have a very powerful lobby that has prevented this in the past. Its time to raise the tax on this as well. This little amount is not going to stop me from buying a six pack or ordering another mixed drink at the bar. My only problem is that the state will most likely blow this new money just like they have wasted most of the revenue they take in now.
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ReplyDeleteYou suggest we encourage our govt to tax us more, and then, in the last sentence you admit they will waste the money - or steal it?
Stand up for your beliefs. Either the govt is corrupt and evil or it is not. Which is it?
Liquor companies in Maryland have it better than a union, they own monopolies
ReplyDeleteonly one company in maryland can sell jack daniels, absolut ect
there is no competition now. cut monopolies out and competition will make it so raising the tax will never be noticed except to corporate monopolies
This site might as well establish a "new taxes" section, because when people voted for Obama and his "learn as we go" group of highly educated "theorists" (who among them, had hardly ANY real-world busines experience) who promised everyone who didn't have a dime to their name that they would enjoy the same lifstyle and benefits as those who go to work everyday and sacrifice, well, the bill has to be paid. By someone. And those who don't have a dime are surely NOT in the "who's gonna pay" group (only the "who's gonna get" group)...taxes are going UP. On everything. Whether you like it or not. What really makes me laugh is the people who voted for Obama are screaming just as loud as everyone else about "new taxes"....which is a very good indicator of their intelligence, foresight, and ability to understand "cause and effect".
ReplyDeleteWho buys alcohol in MD? Everyone I know goes to DE. We rarely ever drink in a bar or restaurant due to the revenue producing DUI patrols. Any more that 2 drinks and it can become an expensive night out.
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