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POLITICAL AGENDA

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    D.C.-based Beverage Institute quick to diss proposed state alcohol tax increase

    By Doug Grow | Published Thu, Apr 23 2009 1:34 pm

    Here’s a shocker out of Washington, D.C.: The American Beverage Institute, which represents 140 Minnesota restaurants, is opposed to the alcohol tax increase being proposed by the House as part of the solution to balancing the state budget.

    “Brewers, winemakers, wholesalers and retailers have already been under severe strain in this recession,’’ said Sarah Longwell, the ABI’s managing director, in a statement. “Raising beverage taxes will send hundreds of Minnesotans straight to the unemployment line.’’

    The House “sin’’ tax on booze would raise the cost of a drink between 3 cents and a nickel, according to House leaders. They also say the tax hasn’t been increased since the 1980s.

    But ABI says that the tax is not only a job killer but regressive, too. People being paid $20,000 a year face federal alcohol tax burdens more than 18 times higher than those making $200,000 a year, the ABI says. It also claims that when the feds doubled the tax on beer in 1991, 60,000 Americans lost their jobs.

    “Minnesota could not pick a worse time to increase taxes,’’ Longwell said.

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    Political Agenda is a place for quick-hit news about Minnesota's political scene and players. MinnPost's staff, including Joe Kimball and Doug Grow, will contribute items about local and state government, plus national political doings that have a Minnesota angle. Items will appear throughout the day, so check back often.

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