Archive for Tuesday, February 9, 2010

Alcohol tax

The justifications for a higher cigarette tax in Kansas also apply to alcohol use in the state.

February 9, 2010

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Those who argue that Kansas leaders who support increases in the state cigarette tax also should look at raising the state’s alcohol tax have a valid point.

To balance the state budget, Gov. Mark Parkinson proposed that the state should raise its sales tax by 1 percent for three years and increase its tax on a pack of cigarettes by 55 cents. At about the same time the House Tax Committee killed the governor’s sales tax proposal, a couple of Republican legislators from Johnson County also proposed doubling the state liquor tax. The legislators say the increased tax would raise about $22 million in additional revenue that would go toward supporting mental health centers and reducing the waiting list of those seeking home and community-based mental health services.

The state currently collects a tax of 18 cents per gallon of beer, 30 cents per gallon of wine and $2.50 per gallon of liquor. The taxes are paid before the products are sold at a liquor, grocery or convenience store, but the costs can be easily passed on to retail customers.

To smokers who see themselves as the state’s most beleaguered minority, an increased liquor tax makes a lot of sense.

All of the reasons leaders offer for raising the cigarette tax have valid parallels for alcohol. Cigarette smokers are costly to the state that must help support the increased health care costs of smokers. Alcohol users also raise demand for health care and mental health services. The state wants to discourage tobacco use, especially by teens. The legal age to purchase cigarettes is 18, while the legal age to purchase alcohol is 21, but higher prices that result from tax increases still could be an economic deterrent for young drinkers. Like cigarettes, alcohol also is an optional purchase, not a necessity.

Some of the same concerns about higher taxes driving people to neighboring states to purchase cigarettes also apply to alcohol purchases. This seems only to be a significant concern in the Kansas City metropolitan area, and, even there, most people are going to continue to buy most of their alcohol and cigarettes at the locations that are most convenient to them.

Smoking isn’t the only vice that is costly to Kansas. Do we even need to mention the dangers of drinking and driving? An increased alcohol tax probably would affect a higher percentage of Kansas residents than an increased cigarette tax, but why shouldn’t Kansans who consume alcohol pay a little extra to help cover some of the social costs created by alcohol abuse?

Comments

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  1. rando1965 (anonymous) says…

    i don't drink and drive so why should i pay for the poor choice of a few ?

  2. grammaddy (anonymous) says…

    Why should smokers be the only ones to bear this burden. I"m all for a sin tax. I believe sodas and fruity drinks should also be taxed. they contribute to the health care bills. And fast food.

  3. kansasmutt (anonymous) says…

    Ever heard of liver disease, mental retardation ,DCCA, Police saturation nights and the list goes on and on with drinking problems we all end up paying for them and we dont drink. Those cost taxpayer billions. Time for the drinkers to belly up to the TAX BAR ....

  4. Made_in_China (Paul R. Getto) says…

    Does anyone find it ironic, in this 'war on drugs' that the government itself displays addictive behaviors towards taxing the two most deadly substances commonly ingested by humans. Sales (except on basic food and medications) taxes and income taxes are the way to go. A tax on calories would be useful as well and attack another social problem we are going to pay dearly for in the near future.

  5. AreUNorml (anonymous) says…

    I'd like to lobby a bill that removes the term "Sin Tax". This implies that there is a god and that doing certain things would make you fall from his graces. The truth is that this is a morality tax and it's imposed by those who feel smoking and drinking are a sin.
    If they want to address the tax as a medical tax to cover the insane amount of people who fall ill or die each year from these devices, I'm all for that. And since poor diet is right up there as a top killer in this country, I'd like to see fast food enjoy the same taxation.

  6. merrill (anonymous) says…

    I am willing to pay a little more for my beer and wine.

    I am also willing to pay Kansas sales taxes for all online purchases dedicated to public school funding. This would somewhat level the playing field for local business as well.

    I am also willing to consider this as a dedicated source to assist USD 497 medical insurance, academic salaries,school supplies and school fees.

    This could become available as a dedicated City of Lawrence USD 497 user fee:
    http://www2.ljworld.com/polls/2003/ma...

  7. xbusguy (chris Ogle) says…

    Here are just a few:

    Building Permit Tax
    CDL License Tax
    Cigarette Tax
    Corporate Income Tax
    Dog License Tax
    Federal Income Tax (Fed)
    Federal Unemployment Tax (FU TA)
    Fishing License Tax
    Food License Tax
    Fuel Permit Tax
    Gasoline Tax
    Hunting License Tax
    Inheritance Tax
    Inventory Tax
    IRS Interest Charges (tax on top of tax)
    IRS Penalties (tax on top of tax)
    Liquor Tax
    Luxury Tax
    Marriage License Tax
    Medicare Tax
    Property Tax
    Real Estate Tax
    Service charge taxes
    Social Security Tax
    Road Usage Tax (Truckers)
    Sales Taxes
    Recreational Vehicle Tax
    School Tax
    State Income Tax
    State Unemployment Tax (SUTA)
    Telephone Federal Excise Tax
    Telephone Federal Universal Service Fee Tax
    Telephone Federal, State and Local Surcharge Tax
    Telephone Minimum Usage Surcharge Tax
    Telephone Recurring and Non-recurring Charges Tax
    Telephone State and Local Tax
    Telephone Usage Charge Tax
    Utility Tax
    Vehicle License Registration T ax
    Vehicle Sales Tax
    Watercraft Registration Tax
    Well Permit Tax
    Workers Compensation Tax

    (And to think, we left British Rule to avoid so many taxes)

  8. merrill (anonymous) says…

    However I also support all further construction of major projects such as the sports project(tax increase),school buildings and property purchase be apprroved by USD 497 taxpaying voters.

  9. LarryNative (anonymous) says…

    We need a fat ass tax. Far more people are sick and dying from being unhealthy and lazy then cigs and alcohol combined. Extra fat tax for the fatties who opt for the wheelchair shopping carts instead of walking while shopping for their twinkies.

  10. labmonkey (anonymous) says…

    Why stop there....how about a fast food and junk food tax? How about a huge tax for obese people who have handicap tags?

    Beatrice- You are for many things I deem sinful, so why not an abortion tax?

  11. LarryNative (anonymous) says…

    To make and sell a bottle of beer the manufacturer pays for:

    AFT Tax
    Manufacturing license and tax
    Income tax
    Tax stamps by every state the beer is sold
    Distributor pays sales tax
    and has ATF tax
    income tax
    license tax
    individual state tax stamp
    liquor store pays for
    license tax
    atf tax
    income tax
    city license tax
    sales tax
    customer pays
    sales tax
    dui court cost
    diversion fees
    I think alcohol generates enough revenue already.

  12. Kontum1972 (anonymous) says…

    xbusguy u left out porn tax...

  13. xbusguy (chris Ogle) says…

    Kontum1972..... Okay, so a cheat a little

  14. grammaddy (anonymous) says…

    AreUNorml-- I like the idea of the "morality tax". I used the term "sin tax" not because of a belief in God, but for lack of a better term. Or maybe we could call it a "lack of good sense" tax.

  15. was_freashpowder2 (Alexander Neighbors) says…

    xbusguy

    you forgot about a Death Tax (Tax on Dieing)

  16. scott3460 (anonymous) says…

    "xbusguy

    you forgot about a Death Tax (Tax on Dieing)"

    I'd propose a spelling and grammar tax, but.......glass houses and all.

  17. scott3460 (anonymous) says…

    "AreUNorml— I like the idea of the “morality tax”. I used the term “sin tax” not because of a belief in God, but for lack of a better term. Or maybe we could call it a “lack of good sense” tax."

    Drug addict tax

  18. beatrice (anonymous) says…

    labm: "Beatrice- You are for many things I deem sinful, so why not an abortion tax?"

    Somebody is calling me out, and I haven't even responded to this story yet?

    Okay. Sure, tax abortions. Why not. Tax knee-replacement surgeries too. Heck, just tax all medical procedures. We should also tax Viagra, and lap dances as well.

    In fact, tax everything that isn't necessary. However, as anyone who is married can tell you, drinking isn't a luxury, it is a necessity. (badoom boom)

    Honestly, while I really dislike smoking and agree it shouldn't be allowed indoors in public places, I've never been in favor of an extra tax on cigarettes. It is too selective, in my opinion. Same would hold true for alcohol.

    And monkey, while I feel a woman should have the right to choose whether or not to have an abortion, that is hardly the same thing as being "for" abortion. Don't confuse the two.

  19. AreUNorml (anonymous) says…

    scott3460 (Anonymous) says…
    Drug addict tax
    *****************
    I am all for that. Tax and regulate marijuana and other drugs. We currently give all of that money directly to the black market. not only that, we also spend additional tax dollars to feed prohibition (which hasn't fixed anything, ever). Wouldn't all those drug dollars be better spent in our local economies and in our state coffers? The direct revenue from the taxation of the drugs would pale in comparison to the overall economic influence. The US has spent a trillion dollars over the last 30 years. Today drugs are better, cheaper and more attainable by children.

    Taxation and regulation would destroy the black market, provide a legitimate source for those who choose to use drugs, and enable the state to reduce usage by minors.

    Would it be perfect; no. But no government agency or bureaucracy is. But really, could legalized marijuana really be any worse than our current situation?

  20. 75x55 (anonymous) says…

    Sorry, all of you how say "I'm willing to pay extra..." are idiots.

    You're paying more than enough now. The problem isn't 'too little money', it is too much unnecessary spending, by a grossly inefficient government bureaucracy.

    If people only realized how much they are paying to government in these 'easy-to-swallow' taxes that are "The taxes are paid before the products are sold" - you'd stop looking at them as your public duty, and more like what they are - statist robbery.

  21. paisley (anonymous) says…

    I agree with xbusguy and LarryNative.
    too many taxes already.
    Misuse of revenue...?
    How about a tax on peanut products and dairy. They can cause allergic reactions as can heavy use of perfume or cologne...severe health risks.
    What is happening to our world?

  22. commuter (anonymous) says…

    Merrill - di you pay use tax for your online purchases, if sales tax was not charged??? Yes???

    If the answer is no, you are part of the problem with the budget crunch in Kansas. Pay your taxes man.

    I am sending my taxes for my purchases later this week. I can at least said I helped reduce the budget shortfall in Kansas.