For the first time since 1969, the Wisconsin State Legislature is contemplating raising the state’s beer tax.
The bill, authored by Rep. Terese Berceau, D-Madison, would increase the beer tax from $2 to $10 per barrel, resulting in an increase in price of less than three cents per 12-ounce bottle of beer.
According to state estimates, the tax could raise up to $48.8 million per year. The money would be used to combat problems such as binge drinking, drunken driving and alcohol abuse by funding law enforcement and treatment programs for alcohol-related issues, according to Rep. Anthony Staskunas, D-West Allis, chair of the Assembly Public Safety Committee.
“Our state has a real problem with drunk driving. We need to fight that problem in a couple ways: one being we need to treat people early on,” Staskunas said. “If we’re going to treat an alcohol problem … the [tax revenue] should be directed towards treatment.”
Staskunas added the current tax on beer is extremely low and the state has a large number of alcohol-related accidents.
The Public Safety Committee hearing, expected in October, will allow organizations and citizens to testify in favor of and against the bill.
However, Staskunas said this is only the first step in the tax becoming law. The bill must then pass the committee, both houses of the Legislature and the governor, which many, especially Republicans, believe will not occur.
“It’s a goofy, nutball idea that is unfortunately going to be given a hearing,” said Rep. Scott Suder, R-Abbotsford. “It’s more important to create jobs for people who haven’t been convicted of crimes, not taxing citizens to support those with drug and alcohol addictions.”
Furthermore, in a state with many breweries, some believe an increase in beer tax will harm the economy. Pete Madland, spokesperson for the Tavern League of Wisconsin, a 5,000-member organization that serves retail beverage businesses, cited potential job loss as a reason for opposition.
“The beer industry is a very important industry to the state of Wisconsin and this will cost jobs,” Madland said. “It affects middle and lower class people and it affects our costumers.”
Madland added that consumers are already taxed enough in this state.
According to Madland, only 5 percent of Wisconsinites abuse alcohol and raising the tax to help those citizens is a disadvantage to other citizens.
Both Madland and Suder agree that instead of raising taxes legislators should look to cut spending to fund treatment programs.
However, Staskunas said the elevated rate of alcohol-related incidents in Wisconsin only further displays the need for the tax, as well as the need for the treatment and legal efforts made possible by the tax revenue.
“It’s an uphill fight; in general, any tax increase is a long shot,” Staskunas said. “Maybe if the money is directed towards something like [treatment], it will have a chance.”
Correction: Due to an editing error, this article originally stated the tax could raise up to $9.4 million. The correct figure is $48.8 million. We regret the error.