Governor Schwarzenegger Proposes an Alcohol Tax Increase
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.
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For full versions of posted research articles readers are encouraged to email requests for "electronic reprints" (text file, PDF files, FAX copies) to the corresponding or lead author, who is highlighted in the posting.
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