Minnesota House Democrats will release their tax increase proposal on Monday. In it will be substantial tax increases on alcohol. Leading the pack is Rep Karen Clark (DFL-Minneapolis) writing 2 very dangerous bills.
If passed, HF 1896 will place a "alcohol health and judicial impact fee" of 2.5% on all retail sales of alcohol in the state in addition to $6.61/barrel. Together, these fees are the equivalent to a 43.8% increase on a barrel of beer.
Also on the floor will be HF 2125 (Clark) which would raise even more taxes on a barrel of beer with a nine-fold increase over current tax rates.
There are similar bills on other states too, making this a nationwide issue.
80 million people in America are beer drinkers, of which more than half make less than $45,000 per year. So much for Obama's plan not to increase taxes for anyone making less than $250,000. Couple that with the fact that many beer drinkers are also smokers who just had another tax slapped on them, and the lower and middle classes are getting whacked with higher taxes.
The impact on the beer industry in America would be devastating. That has already been proven in the 1990's when the federal government increased the beer excise tax. The result was a doubling in taxes for large brewers and sales declining nationally by 4.3 million barrels. 31,000 Americans lost their jobs.
Currently, taxes on beer in Minnesota at the retail level are 40%, substantially higher than other retail products. An increase in taxes at the magnatude Representative Clark is proposing is more than rediculous, it is wreckless. At a time when Minnesota has an 8.2 unemployment rate, taxing companies to death is the wrong thing to do. More jobs will be lost and local brewers, wholesalers, and retailers will go out of business.
Photo: Business Wire
Comments
This is crazy. We are really seeing how Obama nabbed peoples' votes by spewing false promises and now, hopefully, everyone that voted for him are realizing how he and his administration are negatively touching our lives in ways that we never would have imagined.
I do have to say though that increasing taxes on things like this does make it a user tax. If you do not want to pay the tax, you simply don't buy the product. However, I think the trouble that businesses are already in should be in the front of Pres. Obama's mind and the fact that doing this to companies these days is not a smart move.
HAVE YOUR VOICE BE HEARD AND MAKE A DIFFERENCE!!!
Taking action is easy and won't take much of your time, but it will make a giant difference
Please visit Axetaxesnotjobs.com and fill out the form to join the fight against irresponsible and regressive taxes.
"This will cost jobs in our industry— including those of small business owners, servers and bartenders like you who are the lifeblood of our economy. We need your personal involvement and help“
Thank you
Jordon,
I don't recall President Obama ever stating
"I will not raise taxes on items that cause social problems, like cigarettes and tobacco," while he was campaigning. Maybe, just maybe, just maybe, one drunk won't be able to afford that last beer he really didn't and so he won't drive his car head on into another vehicle. Maybe, just maybe, just maybe, that drunk who has a habit of going home and slugging around his wife or kids might not be moved to do so anymore because he can't afford the beer that puts him in that foul mood. And maybe, just maybe, just maybe, some of these young people who like to go out to the bar and get stumbling drunk won't be able to afford getting as drunk as they used to....I suggest you think of the positives that might come from making a decision like this...or, I suppose you could turn on Rush Limbaugh and listen to a little more hate to get you through the day. Your choice, of course.
Tim, instead of thinking of the less than 1% of end-users that will be afforded the luxury of not getting hit by a drunk driver or beaten by their drunk husband (who, btw typically find the booze no matter how poor they are), why don't you think about the industry as a whole and the thousands who will lose their jobs as a result of taxing the barrels to the hilt? In typical liberal fashion, you have chosen to ignore the big picture and give your annointed one a pass.
Curious, do you eat out? Do you grocery shop at a store that sells beer? Do you drive a car? Do you ride the bus or transit? Do you use electicity? Do you use your A/C when it's hot outside? Do you use hot water for your shower? Do you use a computer?
If you answered yes to any of these, you will be taxed, and taxed a lot, under BHO's save-the-world plan where 95% of Americans are duped into thinking he is cutting their taxes instead of raising them. Take off the rosy glasses and get some knowledge. Come back in a year and tell me how many lives were saved by the beer tax.
Erin,
I voted for your main man George W. Bush in both the 2000 and 2004 elections (at least I have the balls to admit it), and actually consider myself to be "conservative."
I'll save you my background in and around policy, other than to say that I'm pretty comfortable that I have the "knowledge" you requested I go "get." For you to categorize me as a "typical liberal" because I'm supportive of our current President,
(who "btw" didn't come into office and immediately make abortion legal and Muslim
the official religion) is so misguided and assumptive that it makes me question who the person is that needs to "go get some knowledge." I will get back to you in 1 year, to the day, with the facts. It will be very interesting, and I look forward to the findings.
Magnatude is spelled Magnitude
Rediculous is spelled ridiculous
Common mistakes that I dismissed as a type.
But you want to start playing the typo as an opportunity to try to insult someone's intelligence game....All I gotta say is...
"Typical"
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