A Madison Democrat, Rep. Terese Berceau, is again pushing a move that we have supported in the past and do so again - an increase of the tax on beer.
It bears repeating, Wisconsin has the third lowest beer tax in the country, in a state where residents consume massive amounts of the bubbly brewed beverage.
In May, Berceau proposed the idea, and we wrote then, it was about time this sacred cow was cashed in on by state government.
The proposal would increase the beer tax from about $2 per barrel to $10 per barrel, or about 2.4 cents per bottle of beer.
It has been 40 years since the tax was raised, and nearly as long since the idea has even had a chance to be discussed at the legislative level.
That changed Tuesday.
For the first time since 1969, the tax proposal was discussed in a state legislative committee hearing.
It is unlikely the bill will go anywhere, but even advancing the dialogue is progress.
Gov. Jim Doyle has said he will not support the increase, according to the Associated Press, and two very powerful state lobbies, the Tavern League of Wisconsin and a coalition of state breweries and distributors, would almost certainly mount an offensive against the idea.
But, the state has a severe drinking problem, which is more important than economic interest. When considering the amount of money that could be collected by a 2.4 cent per bottle of beer tax increase - $58 million, according to Berceau - the proposal is worthwhile to help increase enforcement and rehabilitation programs to curb drunken driving.
The bill faces another challenge.
An additional tax increase might be hard to sell. The Wisconsin Tax Payers Alliance reported Tuesday that Wisconsinites spent about 12 percent of their personal income on taxes in 2007, which ranks 12th in the nation. The statistics are two years old, but give an indication of what the state taxpayers already pay out. The percentage of personal income paid was actually down less than one percent, from 2006, but still above the national average.
However, given the number of people who are injured or killed in drunken driving crashes, the small tax increase is worth the investment.
Also in May, a letter to the Times from Deb Carey, co-owner of New Glarus Brewery responded to Berceau's idea.
Carey, and Dale Pehler, of Pehler Brothers Distributing, pointed out that about 40 percent of the cost of a bottle of beer is to pay state, local and federal taxes and fees. While the letter states that a small increase in the beer tax would not in itself cripple the state's craft beer industry, when it is combined with other tax increases and the slumping economy the tax could have a negative impact. The letter also says the tax could cost jobs in the craft beer industry.
A beer tax law could certainly have protections for small breweries, and distributors, which are key industries in the state's economy.
In southwest Wisconsin, we know this. We have craft breweries employing local residents, including the Potosi Brewery, New Glarus and our hometown Minhas Craft Brewery.
Those businesses should be protected, but the need to fund a way to help eliminate the state's drunken driving problem is worth the tax increase.
This bill deserves more than just a hearing. It demands serious consideration and action.
It bears repeating, Wisconsin has the third lowest beer tax in the country, in a state where residents consume massive amounts of the bubbly brewed beverage.
In May, Berceau proposed the idea, and we wrote then, it was about time this sacred cow was cashed in on by state government.
The proposal would increase the beer tax from about $2 per barrel to $10 per barrel, or about 2.4 cents per bottle of beer.
It has been 40 years since the tax was raised, and nearly as long since the idea has even had a chance to be discussed at the legislative level.
That changed Tuesday.
For the first time since 1969, the tax proposal was discussed in a state legislative committee hearing.
It is unlikely the bill will go anywhere, but even advancing the dialogue is progress.
Gov. Jim Doyle has said he will not support the increase, according to the Associated Press, and two very powerful state lobbies, the Tavern League of Wisconsin and a coalition of state breweries and distributors, would almost certainly mount an offensive against the idea.
But, the state has a severe drinking problem, which is more important than economic interest. When considering the amount of money that could be collected by a 2.4 cent per bottle of beer tax increase - $58 million, according to Berceau - the proposal is worthwhile to help increase enforcement and rehabilitation programs to curb drunken driving.
The bill faces another challenge.
An additional tax increase might be hard to sell. The Wisconsin Tax Payers Alliance reported Tuesday that Wisconsinites spent about 12 percent of their personal income on taxes in 2007, which ranks 12th in the nation. The statistics are two years old, but give an indication of what the state taxpayers already pay out. The percentage of personal income paid was actually down less than one percent, from 2006, but still above the national average.
However, given the number of people who are injured or killed in drunken driving crashes, the small tax increase is worth the investment.
Also in May, a letter to the Times from Deb Carey, co-owner of New Glarus Brewery responded to Berceau's idea.
Carey, and Dale Pehler, of Pehler Brothers Distributing, pointed out that about 40 percent of the cost of a bottle of beer is to pay state, local and federal taxes and fees. While the letter states that a small increase in the beer tax would not in itself cripple the state's craft beer industry, when it is combined with other tax increases and the slumping economy the tax could have a negative impact. The letter also says the tax could cost jobs in the craft beer industry.
A beer tax law could certainly have protections for small breweries, and distributors, which are key industries in the state's economy.
In southwest Wisconsin, we know this. We have craft breweries employing local residents, including the Potosi Brewery, New Glarus and our hometown Minhas Craft Brewery.
Those businesses should be protected, but the need to fund a way to help eliminate the state's drunken driving problem is worth the tax increase.
This bill deserves more than just a hearing. It demands serious consideration and action.
