RSSState's going down wrong path with alcohol
Yakima Herald-Republic Editorial Board
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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.
The state should turn over liquor sales to the private sector and keep the tax. But the unions won't let that happen because there would go thier jobs and state retirement! Wow how much of that state revenue of liquor tax goes to pay state employees? How much of it really makes it back to local governments that have to deal with the drunk accidents and jail costs not to mention the mentally ill alcholics described in todays article. Do a little checking for the publics information. How does the total revenue from liquor sales breakdown? Where does it go? It is not enough to say it raises revenue for the state. What does it pay for or it it just for the big black hole of state government revenue?
Report ViolationBasically, I agree with the comment above. I also add the question? How do you think another liquor store or two in a city will cause bigger problems with those who suffer alcoholism? That the stores might be closer together to crawl to?
If an alcoholic wants to drink, there are any number of places he/she can access a supply. I fail to see a reason to single out an added liquor store as increasing an alcoholic's problem.
In any case, government in business, competing against private enterprise is ALWAYS a bad idea. And, in the case involving alcohol and tobacco, it is even a worse one. Talk about your "conflict of interests".
There goes our favorite (sarcasm) Governor trying to get her hands on every possible tax dollar she can. She is going to put the state in direct competition with the private-run liquor stores? Thats just the greed talking. I know we have a budget shortfall, but this idea for revenue needs to be dropped.
Report ViolationI also feel that liquor sales should be turned over to the grocery stores. Lets let the private enterprises get apart of the take. Close all state ran liquor stores ! And again lets close all liquor stores on weekends.
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