In Pittsburgh, protesters dumped beer and liquor into a river after county officials approved a 10 percent tax on poured drinks. Patrons in Oregon bars downed brews while writing lawmakers to oppose a proposed beer tax increase. And in Kentucky, protesters poured bourbon on the Capitol’s front steps to demonstrate their opposition to a 6 percent sales tax on all booze.
“The way things are going right now with the economy, the first thing people want to do is go get a bottle or a beer, and soak their sorrows,” said Jack Weaver of Louisville, who gathered with other Teamsters in a union hall last month to rail against Kentucky lawmakers who voted to raise the taxes as of April 1.
Sin tax increases to help balance budgets are nothing new, but the economic meltdown has legislators proposing them even in states like Kentucky, where alcohol and cigarettes have long been sacred cows. After all, it is famous for its bourbon whiskey and is a leading producer of tobacco used in cigarettes.
“Sin taxes have quickly emerged - as they did in the last recession - as one of the popular tactics that states have adopted to bring in the extra revenue in an environment where raising most other taxes are still pretty politically radioactive,” said Sujit Canagaretna, a senior fiscal analyst for the Council of State Governments.
Faced with an unprecedented $456 million revenue shortfall, Kentucky ignored protests and raised the taxes.
Arkansas increased its cigarette tax this month, and other states considering it include Connecticut, Florida, Michigan, Mississippi, North Carolina and Oregon. Other states - including California, New York and Hawaii - are also considering raising taxes on alcohol products.
