Beer tax to raise 1900%!!

In Oregon and Idaho beer and wine producers are looking down the barrel of a loaded gun. Legislation in these two states is being pushed to raise taxes on beer and wine for the first time in over 40 years. In Oregon the tax increase proposed will raise the price per gallon of beer from $2.60 all the way up to $49.61, that's over 1900%! Although that's only an increase of 15 cents a beer, local craft breweries will be greatly affected. One brewery, Wakonda Brewing Co. in Florence, would see costs rise from $208 to $4080 for the same amount of beer produced.

In Idaho the proposed tax increase is not as dramatic as that proposed in Oregon, however it will still have a great effect on the states beer and wine production. In a time where the economy and small businesses are struggling are the legislators thinking clearly? These tax increases are due to the states demands for better substance control and recovery plans, and many of the brewers feel the burden should not be placed on them or their customers.


My two cents is that in an economy like we have today, states need to pocket their projects and focus on promoting small business and revenue sources for the people running those businesses. While the government is raving about Main Street they are doing little here to actually support the businesses that are keeping Main Street alive. Breweries and wineries across the west are a great part of the communities that they operate in, and to put the "nail in the coffin" as some brewers call this proposed legislation is ridiculous. I am be biased here, I love beer, I live in Fort Collins the home to New Belgium Brewing, and would hate to see the small guys in the industry disappear taking with them their delicious brews, but hell this is my blog so I am due my opinion every now and again.

Anyway, have a look at the two articles, the Oregon article is attached to the title of the post, so just click on that, and here is the link for the Idaho article:

http://www.boston.com/business/taxes/articles/2009/02/23/idaho_beer_wine_tax_hike_hearing_draws_crowd/

Let me know what you think as well, I would love to hear your comments!!