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Tax would destroy local microbrews
In my opnion
by Tyler Graf | Opinion editor
PUBLISHED ON 5/29/07 IN Commentary
That, in a sense, is understandable; Tobacco Road is a coast away, after all. Beer, on the other hand, is a native-born industry. We cannot, and shall not, allow our impotent legislators to cavalierly, imprudently subject a native industry to taxation based solely on the fact that it is an easy political move.
According to an Associated Press article, proponents of the legislation say that the proposed tax would target large breweries and would not affect Oregon's multibillion dollar microbrew industry; brewers, on the other hand, argue that this is an empty promise, because wholesalers and retailers would simply increase beer prices across the board. This would effectively price many customers out of the market.
The beer industry provides nearly 13,000 jobs and accounts for $276 million in paid wages. It already pays seven million dollars in state excise taxes and $114 million in overall state tax revenue, according to the Oregon Brewers Guild.
Our legislators, though, are incapable of talking about the issue without quibbling on the issue. State Sen. Bill Morissette, D-Springfield, told The Register-Guard that as many as 75 percent of Oregon inmates committed crimes related to alcohol or drug abuse. Pardon me, but what the hell does that have to do with the issue? Seventy-five percent of Oregon's non-prison population undoubtedly enjoy a Widmer occasionally. This is merely another politically motivated move to create a new revenue stream for our lackluster state government.
I mean, if the issue were about preventing violent crime, why not focus the tax on beverages that Oregon's prison population probably drank? Why not place an excessive excise tax on Hurricane Ice? Or Boone's Farm? We could ban Steel Reserve outright.
But this isn't about crime prevention (because, well, that's ludicrous), this is about taking advantage of a successful industry. The Oregon legislature has a noxious habit of tying certain economic policy's to the Consumer Price Index, which measures urban growth and inflation (Oregon's minimum wage, for example). The problem, however, is that the price of beer increases more slowly than inflation, creating a potential long-term burden for beer producers.
As unfortunate as it may sound to many, Oregon may need to look to other forms of taxation. A sales tax may not be popular, but it may be the most effective reality for a state that is proud of its native industries. Beer is one of those native industries.
tgraf@dailyemerald.com
According to an Associated Press article, proponents of the legislation say that the proposed tax would target large breweries and would not affect Oregon's multibillion dollar microbrew industry; brewers, on the other hand, argue that this is an empty promise, because wholesalers and retailers would simply increase beer prices across the board. This would effectively price many customers out of the market.
The beer industry provides nearly 13,000 jobs and accounts for $276 million in paid wages. It already pays seven million dollars in state excise taxes and $114 million in overall state tax revenue, according to the Oregon Brewers Guild.
Our legislators, though, are incapable of talking about the issue without quibbling on the issue. State Sen. Bill Morissette, D-Springfield, told The Register-Guard that as many as 75 percent of Oregon inmates committed crimes related to alcohol or drug abuse. Pardon me, but what the hell does that have to do with the issue? Seventy-five percent of Oregon's non-prison population undoubtedly enjoy a Widmer occasionally. This is merely another politically motivated move to create a new revenue stream for our lackluster state government.
I mean, if the issue were about preventing violent crime, why not focus the tax on beverages that Oregon's prison population probably drank? Why not place an excessive excise tax on Hurricane Ice? Or Boone's Farm? We could ban Steel Reserve outright.
But this isn't about crime prevention (because, well, that's ludicrous), this is about taking advantage of a successful industry. The Oregon legislature has a noxious habit of tying certain economic policy's to the Consumer Price Index, which measures urban growth and inflation (Oregon's minimum wage, for example). The problem, however, is that the price of beer increases more slowly than inflation, creating a potential long-term burden for beer producers.
As unfortunate as it may sound to many, Oregon may need to look to other forms of taxation. A sales tax may not be popular, but it may be the most effective reality for a state that is proud of its native industries. Beer is one of those native industries.
tgraf@dailyemerald.com
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