Can you spare a dime? Editorial by Vickie Grinder
May 1, 2010
With legislation over halfway through there is little chance the proposed “Dime Tax” bill will pass; The Lorraine Sheehan Health and Community Services Act of 2010, House bill 832. This Act would increase alcohol taxes by a dime per drink in the state of Maryland creating an estimated $214 million in new revenues. This revenue would throw 15% to the Development Disability Support Fund, Addiction treatment & Prevention Fund and the remainder to the Mental Health Care Fund. Supporters of the bill say millions would be directed to help save lives by reducing alcohol abuse and underage drinking. Alcohol abuse is a serious problem and those who admit they have a problem should receive help. But it seems once again the consumer will take the hit on an evening out or staying in if you consume alcohol. Dropping a dime on a drink may not sound like much but this equates to a devastating 700% tax. Dining out or visiting your local bar will cost an additional dime a drink, and at the liquor store that’s an extra $2.40 on a case of beer. With Maryland restaurants and bars experiencing flat or decreasing sales, is this a good idea given the state of the economic conditions where more consumers are dining in anyway? This dime tax if passed could cut consumption of alcohol by as much as five percent in the hospitality industry which will certainly translate into loss for jobs and income for an industry who faces doors closing everyday throughout the state according to The Corridor Business Journal. Not to mention the additional administrative costs on the businesses to comply with proper reporting. Some members of the General Assembly did say “now is not the time to place an extra burden on social business or residents.” Seems law makers most certainly have kept their promises by not raising taxes; they are incurring taxes on what we buy. A new poll released on March 4th reveals 72% of Marylanders support alcohol tax and majority want lawmakers to make an exception to no-new-tax pledge and increase alcohol tax this year; seems 72% of that poll has not looked at the current unemployment percent. I contacted Delegate Paul Stull (R) about proposed House Bill 832 and was told this will probably not be voted on until 2011. The intention of the bill is noble but “dropping a dime” should not target a particular industry or consumer. Statistics from Johns Hopkins University Bloomberg School of Public Health says raising the tax to the equivalent of about 10 cents per drink would pay huge dividends. By their estimate: 14,987 fewer cases of alcohol dependence, 37 fewer deaths (many of them traffic-related), 13 fewer rapes, 316 fewer assaults, 21 fewer robberies, 67 fewer incidents of severe violence against children and 19 fewer cases of fetal alcohol syndrome each year. No argument there, however, if everyone’s health and safety are truly the interest of our law makers then why not revisit the Eighteenth Amendment forbidding the manufacture, sale, import, consumption or export of intoxicating liquors. According to lobbyists this bill will pass in 2011 but with midterm elections this year, seems lawmakers seeking reelections do not want to vote on any tax increase! But no doubt after they are reelected you will be dropping that extra dime on a drink. What’s next? An extra tax on diapers? Don’t laugh, if this House Bill 832 were to pass and consumption decreases where would they get the extra funds?
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