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Liquor suppliers worry over tax hike

With Wisconsin’s District Attorney Association proposing the first increase in Wisconsin’s beer and liquor tax since 1969, some local alcohol suppliers are reluctant to see how such a change would affect sales.

According to WDAA President Ralph Uttke, to hire new prosecutors, Wisconsin needs to provide its legal system with between $10 and $15 million each year. In light of Wisconsin’s recent economic problems, WDAA has proposed raising this money through a tax increase on beer and liquor.

Uttke added the proposal requires a “moderate” tax increase he sees having no effect on alcohol sales.

Despite Uttke’s views, local bar and liquor storeowners have voiced opposition to an increase in the tax and the effect it would have on jobs in the industry.

Pete Madland, executive director of the Tavern League of Wisconsin, a group which represents Wisconsin’s alcohol servers and suppliers, said the plan would cause Wisconsin’s already struggling economy and job market serious damage.

“I would think there’d be some resistance given that Wisconsin holds a major brewery,” Madland said. “This tax hike will decrease the number of jobs.”

Although Wisconsin’s tax on beer and liquor is among the lowest in the United States, those involved in alcohol sales still believe any increase in price would significantly hurt business.

Rich Becker, brewmaster at J.T. Whitney’s Pub & Brewery, said a rise in the tax would notably decrease profits by discouraging the purchase of alcohol. According to Becker, the combination of rising costs of alcohol due to issues with production and increased taxes would create problems.

“Hops prices have gone up dramatically in recent years, so all prices have been going up,” Becker said. “If you start increasing taxes, the price of beer is just going to go through the roof.”

Wisconsin has a history of low taxation on alcohol, and many in the industry don’t see that changing in the near future. According to Madland, while many wish to see change within Wisconsin’s legal system, higher taxation on beer and liquor would be extremely unpopular.

“I think that most people would like to see the governor cut spending rather than see more and more money come out of their own pockets,” Madland said.