State's going down wrong path with alcohol

This editorial appears in the Yakima Herald-Republic on July 1, 2009.

The state has a bad addiction, and the record budget deficits haven't helped.

In a calculated move to re-jigger its revenue, the state plans to ramp up the sale of alcohol while at the same time tacking on extra costs to consumers through markups. The end result will be millions generated in sales not to mention an expansion in the number of state-run stores, more booze being sold on Sunday and greater competition with private retailers in the lucrative wine and beer market. Let's don't even mention what these burgeoning liquor sales will do to those battling alcoholism.

To say we are not overjoyed with this move by the state would be an understatement.

Of course, this state is not alone in seizing on booze as a magnet for disposable income. Officials across the nation are tacking on extra costs, from Oregon to Kentucky where whiskey holds sway. Lawmakers in Congress are also looking at a higher alcohol tax to help cover the costs for health-care reform.

But the honor for being the most aggressive state in capturing added revenue from a fifth of bourbon goes to Washington. Officials want to open a new liquor store every 60 days starting this fall, along with more stores open on Sunday. The state also has plans to set up seasonal liquor stores in malls, giving new meaning to the phrase "Christmas spirits."

Increased sales from these efforts are expected to net $16 million.

The impact from this sales push will be especially heavy on private retailers like grocery stores. It's bad enough that the state competes with private businesses in the first place without embarking on a new campaign of expansion.

One of the more glaring moves by the state is the markup imposed on profits. This will add extra costs on top of sales and liquor taxes already being paid for by consumers. The surcharge, which goes into effect Aug. 1, could bring in another $80 million over the next two years and will add about $3.70 to the price of a bottle of premium whiskey.

We have long railed against the state for still being in the business of running stores and placing restrictive controls over the wholesale distribution of liquor.

However, the record budget deficits make this state's dependence on liquor-sale revenue even more pronounced. That's tragic.

Why not extend this absurdity one step further and have the state consider legalizing marijuana? Now there's an untapped revenue stream ... or would that be smoke?

Politicians would no doubt consider this prudent fiscal policy. If legalizing and taxing marijuana is up for consideration by Gov. Arnold Schwarzenegger in California, it should be good enough for us here. When a state becomes addicted to one sin, what's wrong with adding another?

* Members of the Yakima Herald-Republic editorial board are Michael Shepard, Bob Crider, Spencer Hatton and Karen Troianello.