Gov’s excise tax hike on alcohol is needed
The last time anyone proposed a big tax hike on alcoholic beverages, including wine, was back in the early 1990s. I dont recall all the details, but the industry widely regarded this as an attack by neoprohibitionists (a term that, I believe, Wine Intitute’s then-chairman, John DeLuca, coined), and DeLuca himself led the charge against the “sin tax” hike. He didn’t entirely succeed in eliminating it, but the eventual rise amounted to only a penny for a glass of wine.
I was against a tax on alcohol, especially on wine, at that time, as I believed wine to be a civilizing influence, and things that calm and relax adult humans ought not to be taxed. But here we are, some 17 years later, and once more a serious proposal is on the table to tax wine, beer and spirits. This time, it comes, not from neopros, but from California’s Republican Governor, Arnold Schwarzenegger, who according to what I’ve heard enjoys a little nip of something now and then. Here’s a link you a YouTube that seems to be Arnold in a Japanese drink commercial, and back in his weightlifting days he made no secret of his affection for beer and wine.
That ain’t no girlie-man Chardonnay
Anyway, this time around, I have to reluctantly support the Governor’s proposed tax hike on alcoholic beverages. The particulars, according to Meininger’s Wine Business International, are that the proposed tax increase will amount to about five cents for a glass of wine. If you assume 8 glasses of wine per bottle, that’s a rise of 40 cents per bottle, which doesn’t seem like all that much to me, if it will help bail California out from the enormous fiscal hole we’re in.
Republicans, who never saw a tax they liked, have reacted predictably. Here’s a snippet from former Republican presidential candidate Ron Paul’s website, which contains an official statement by the Sonoma County Republican Party, in which they censor the man they call, without affection, the Governator:
“Governor Arnold Schwarzenegger…has reached across the aisle and found his true niche as just another, run-of-the-mill tax and spend liberal.” The declaration of censorship also says that the proposed excise tax hike “would equate to a tax on wine grape growers of $217 a ton of grapes, more than the average cost per ton for the majority of wine grapes grown in California.” Actually, this isn’t true. According to the 2007 Grape Crush Report, published by the California Dept. of Food and Agriculture, the average price per ton of wine grapes, red and white, last year in California was $565. But, hey, what’s a little exaggeration when you’re making a political point?
Look, nobody wants to see taxes go up just for the hell of it. But anyone who hasn’t been living in a cave knows that California is broke, with all that implies for roads, schools, cops, the environment, fighting fires, hospitals and the rest of the infrastructure and services upon which we depend every day. In my judgment, 40 cents per bottle of wine isn’t too much to pay for keeping our state alive.