A government-appointed committee has proposed an increase in alcohol taxes in an effort to prevent underage drinking, but not everyone agrees that more taxation is the answer.
In September, a committee appointed by the National Research Council and the Institute of Medicine released a report which said traffic fatalities and violent crimes associated with underage drinking cost the United States $53 billion a year.
The idea behind the tax increase, according to the report, is that a higher tax would lead to less underage drinking.
The report does not specify how much alcohol taxes should be increased.
Currently, consumers pay a $2.14 tax on a bottle of 80-proof whiskey, a 33-cent tax on a six-pack of beer and a 21-cent tax on a bottle of wine, according to the National Academy of Sciences.
While many beer companies and others in the alcohol industry are against an alcohol tax increase, Cathy Childers, state executive director for Mothers Against Drunk Driving said she supported the proposed change.
Childers said research has shown that underage drinkers are more sensitive to price changes than other consumers.
Childers said alcohol-related traffic crashes cost the state $2.9 billion a year.
“It seems fairly reasonable to me,” Childers said.
Wallace Francis, manager of a Cracker Barrel service station on Government Street, said he does not have control over any prices or taxes.
“That is all pre-programmed and set in the corporate office,” Francis said.
Francis said while revenues from alcohol taxes are supposed to help in the community, he has not seen any evidence of it.
“They’re supposed to do stuff with the revenue, but I never see it,” Francis said.
Students said they did not think a tax increase would be an effective way to reduce underage drinking.
Dustin Henson, an ISDS sophomore, said since many college students are partially supported by their parents, he did not think the cost of alcohol would have an effect on their drinking.
“I really don’t see a relationship between the tax and drinking,” Henson said.
Celeste Marmande, a construction management sophomore, said she did not think underage drinkers would care about a tax increase.
“If they want to drink, they’ll buy the alcohol,” she said.
National committee suggests higher alcohol tax
October 20, 2003