A Nickel a Drink is the Change We Need!
Long Overdue Tax Increase Could EaseCalifornia’s Budget Deficit and Mitigate Alcohol-Related Costs
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.
"Each year thousands of lives in California are cut short or forever damaged due to alcohol," said Michele Simon, JD, MPH, Marin Institute's research and policy director. "For too long, the alcohol industry has avoided paying its fair share of taxes. Marin Institute supports alcohol tax increases as one of the most important policies to reduce high risk consumption, especially among youth."
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| 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% decrease in the real value of 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. |  |
| California Governor Arnold Schwarzenegger walks with his Chief of Staff Susan Kennedy to a press conference where he called state legislators to a special session to address budget concerns November 6, 2008 in Sacramento, California. The state's budget deficit has ballooned to $11.2 billion in just the past few weeks, and Schwarzenegger calls for budget cuts and a tax hike. (Photo by Max Whittaker/Getty Images) (Max Whittaker) |
