
California Governor Schwarzenegger has proposed a nickel a drink alcohol tax increase on wine, beer and distilled spirits to take effect January 1, 2009. The long overdue tax increase will raise new funds – estimated at over $878 million over the next year and a half - to help reduce the state’s serious budget shortfall while providing critical support to programs that deal specifically with alcohol-related problems.
SEE BUDGET PROPOSAL see pg. 12
The last alcohol tax increase in California was in 1992, and was only a penny on a glass of wine and two cents per can of beer and shot of spirits. Since that time, rising inflation has led to a 49% net decrease in state alcohol taxes. At the same time, alcohol-related problems have increased dramatically and now cost the state and its citizens $38 billions dollars annually in healthcare, criminal justice, addiction treatment, lost productivity and myriad other costs.
Read Full Article
____________________________________________________________________________________