The tax they should've passed
Of all the taxes O'Governor and the Maryland legislature could have raised in November's special session, the one on alcoholic beverages made the most sense, and it was the most overdue for a'raisin'. We'd get more bang for the buck with an increase of just pennies on the booze tax -- put to good use, for drug and alcohol treatment programs -- than any other new tariff the state imposed. O'Malley has come forth with a pittance -- a $5 million increase for drug and alcohol treatment programs -- when we have a chronic, multigenerational heroin problem in Baltimore and its 'burbs that fuels crime, contributes to overcrowded court dockets and prisons, and is in large measure responsible for a costly recidivism rate of more than 50 percent. (Half of inmates released from the DOC this year will be back within three.) There are few things in which government dollars are more needed, and more effective -- one fewer addict in prison means a $25,000 annual savings in inmate warehousing alone. (Instead, we're still building prison space.)
Maryland's tax on alcohol sales have not been increased since 1955 for liquor and 1972 for beer and wine, and as a result we have one of lowest rates in the nation.
Not that the General Assembly will be in the mood for raising another tax, but Delegate Bill Bronrott (D-District 16), chairman of the Drug and Alcohol Abuse Committee, is calling again for a small increase in the alcohol excise tax for treatment and prevention programs.
Here's his statement, released an hour ago:
“Governor O’Malley today proposed a budget that makes hard choices and some wise investments given that Maryland is trying to reduce its spending and eliminate its deficit. In particular, the Governor’s decision to invest $5 million more into drug and alcohol treatment is a good first step since these services reduce the financial and human costs that addiction creates -- including crime, lost jobs and broken families.
“Untreated drug and alcohol addiction costs Maryland’s economy, budget and taxpayers almost $6 billion a year, and only one in four persons who needs addiction treatment gets it. With such a huge price tag on the problem and so little access to the solution, much more must be done to improve and expand access to these lifesaving and cost effective services.
“However, because Maryland’s budget is so strapped, we must find responsible new sources of revenue to pay for program priorities. In this case, one way to increase the investment in drug and alcohol treatment without cutting other critical programs would be to implement a pennies-per-drink tax on alcoholic beverages. Such a tax could generate upwards of $60 million annually to help close this gaping hole in our public health and safety systems.
“No state has a lower excise tax on distilled spirits than Maryland – this tax costs only two cents per shot. The last time it was raised, President Eisenhower was in his first term, the Orioles had just finished their first year in Baltimore, gasoline was 23 cents a gallon, and Elvis had not even been discovered yet. The year was 1955.
“Maryland’s beer and wine taxes that were set in 1972 are among the lowest in the nation. The beer tax is equivalent to only one cent per 12 ounce draft and the tax on wine is only two cents per glass. Sadly, it is not unusual now for a six-pack of cola to cost more than a six-pack of beer.
“Allowing addiction to remain untreated in Maryland is expensive and potentially dangerous since well over 50 percent of people admitted to trauma centers or arrested for jailable offenses are under the influence of alcohol or drugs.
“Investing in treatment saves lives and also saves money -- every $1 invested in addiction treatment saves $7 in reduced crime and criminal justice costs, which increases to $12 in savings when health care costs are factored in.
“As I have done in the past, I will introduce legislation to increase the alcohol excise tax by the equivalent of a few pennies per drink for the explicit purpose of dramatically expanding the availability of drug and alcohol treatment and prevention programs for adolescents and adults throughout Maryland.
“An independent statewide poll conducted by OpinionWorks in the summer of 2006 found that 67 percent of Marylanders support increasing the state alcohol excise tax, especially when revenues are designated for addiction treatment. So, when the voters have spoken so clearly and Maryland is scrambling for new sources of funding, passing an alcohol tax is fiscally prudent and will help provide socially responsible services that make all of our communities more livable, healthy and safe.”







Comments
It's a good idea, but remember that Anheuser Busch has deep pockets; therefore, you should expect to see their lobbyists swarming to Annapolis should Del. Bronrott's bill ever reach the floor.
Posted by: MCG | January 17, 2008 8:29 AM
I'd be all for a tax increase on alcohol, as long as the Legislature gets rid of the silly ban that prevents me from buying wine directly from out-of-state wineries and retailers.
Posted by: PK | January 17, 2008 9:17 AM
Wry vs. Rye
The citizen legislators in Annapolis would rise up in revolt against such a repressive, regressive tax targeting their membership. Can’t Delegate Bronrott see how unfair it is to place responsibility for substance abuse and alcohol abuse treatment funding so heavily on their backs. If such a proposal could pass, they would all clamor for increased salaries in order to pay the tax that would hit them so disproportionately.
Posted by: Bruce Robinson | January 18, 2008 9:32 AM
Oh thank heaven to Martin O'Malley for becoming our faithful governor who can do all wonders for us Marylanders. Tax, Tax and more Taxes propsed so that he can live lavishly and his team while we citizens have to listen to his heresay.
Its time we stand up and enact an plight to not relect our Governor.
Distraught citizen.
Thanks,
Posted by: jamie | March 20, 2009 10:49 AM