BEER, DEATH AND TAXES
BY ROB WEISS

As they say, there are only two things inevitable in life: death and taxes. Yet most people are pretty conservative when it comes to paying taxes. Sure, it is a necessary evil, like going to the dentist or advertising your business, but most people also understand it is needed to keep our social services up and running whether that be on the state, local or national level.

Most people do not want to pay taxes to the federales for a never-ending misguided war or a missile defense shield. We do not want to pay huge taxes when we decide to reward our hours of hard work with a shiny, new expensive toy. Hell, we do not even want to have a state sales tax or local income tax to help fund our schools.

So imagine the outrage that will follow when you, dear readers, fellow lovers of beer, find out the current tax rate on beer. Did you know that upwards of a frothy 40 percent of the cost of every bottle of beer you buy is for tax purposes? That makes it the single most expensive ingredient in the retail cost. Imagine if your favorite flavor were 40 percent cheaper! And guess whose state has one of the highest taxes on beer in the nation? You guessed it: Our very own Oregon.

The beer taxes hit hard. In 1991, the national beer tax doubled from $9 per barrel to $18. This amounted to the largest single increase in tax on beer in our history. This was done along with the luxury taxes to balance the budget. The luxury taxes typically taxed high-end items like cars, yachts, airplanes and jewelry. Less then a year later Congress repealed the luxury tax, but guess what did not get rolled back? Right again: the beer tax.

The high tax rate can be used as an argument for discouraging alcohol abuse, drunk driving and underage drinking. People who abuse alcohol are not going to be affected by price. They will drink if they want/have/need to regardless of an extra buck or two.

Several studies have shown there is consistently no impact from these taxes reducing the level of drunk driving by adults and teen-agers. Drunk driving has decreased since the campaigns by Mothers Against Drunk Driving and SADD (Students Against Drunk Driving) began in the 1980s and the penalties for conviction grew more severe. As for underage drinkers, if they are willing to break the law by drinking, a steep tax probably will not deter them more than the consequences of getting caught.

Now our fair state wants to up the tax again with Gov. Kulongoski allocating 2 percent of the current liquor tax revenues to new alcohol and drug treatment programs. These funds would typically go to the General Fund, yet state and local governments have not been accountable for what they currently collect. Only a small percentage of liquor tax revenue is specifically earmarked for treatment programs. With Oregon's economy in a constant state of struggle, raising taxes not only hurts consumers, it also affects the myriad businesses that are involved in the beer industry.

Oregon is home to roughly 80 craft breweries and generates $375 million in economic benefits for our state. This industry employs thousands of people, from the growers of hops to the drivers who make the deliveries to the bartenders and retailers who serve us up. An increase in the tax has a trickle-down effect that will certainly have a negative impact on the industry as a whole.

Sure, the politicos and proponents will say it is only 10 cents a serving, which equals $2.40 extra per case. But this is at the wholesale level. By the time it gets cold and into our hands, it will be $3 at a minimum.

So rise up and let your voice be heard. We may not be able to stop the never-ending war after five years and billions and billions of dollars (not to mention the human toll of dead and wounded), but we still may be able to keep our suds at their current levels. Let our state representatives know 40 percent is more than enough on a cold one and raising these taxes further is unjust. Now let's all grab a cold one and make a toast to summer and good beer at a good price. What could be more American than that?

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| THE KING OF BEER … SELECTION | ABOUT LAST NIGHT |
| REAL BEER, REAL FOOD | MESSY BEGINNINGS | BEER, DEATH AND TAXES |
| DIETING AND BEER DRINKING | I'M NEVER DRINKING AGAIN | RAISE A GLASS |