Oregon is raising their beer tax from $2.60 to $52.21 a barrel
If it passes, Oregon will overnight become the most taxing state for suds, one-third higher than the next highest beer tax state, Alaska. The state may do this even though Oregon is the second largest microbrewery producer in the U.S. The beer industry and its 96 breweries contribute 5,000 jobs and $2.25 billion to state GDP. Kurt Widmer of Widmer Brewing Co. says the tax would “devastate our company and small breweries throughout the state.” Adds Joe Henchman, director of state projects at the Tax Foundation, “This microbrewery industry has gravitated to Oregon in part due to low beer taxes.”
For Oregon to enact punitive taxes on its homegrown beer industry makes as much sense as Idaho slapping an excise tax on potatoes or for New York to tax stock trading. Even without the tax increase, taxes are the single most expensive ingredient in a glass of beer, according to the Oregon Brewers Guild.
Considering the ruinous state of New Jersey, I wouldn’t be surprised if the geniuses in Trenton follow the Oregon tax trail.
California is still considering raising the tax on beer, all beer, as high as 30 cents a bottle. It currently is at 2 cents. Aside from the usual whining about not having enough tax money to make the state great again they acknowledge that sodas are taxes more than beer. And not as much fun or so I’ve been told.
And what makes it even more stupid, is that the state unemployment rate is going through the roof. See the post at Calculated Risk for details: http://www.calculatedriskblog.com/2009/04/oregon-unemployment-rate-ties-record.html