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| Written by KSBW |
| Friday, 02 April 2010 10:39 |
 Proposal Looks To Raise Tax On Wine 12,675%Tax Would Raise Wine $5 Per BottleMONTEREY, Calif. -- Local wine growers said a proposal in California to tax wine $5 a bottle will kill their business, and the California economy along with it. The Alcohol-Related Harm and Damage Services Act of 2010 would increase the excise tax on a bottle of wine 12,675 percent. That means the current tax of 4 cents on a bottle would go up to $5.11. Money from the tax would fund programs that address alcohol-related injuries and damages. But growers like Jason Smith of Paraiso Vineyards in Soledad said the tax would shut down business. "This tax is just short-sighted and is not looking at the whole picture," Smith said. "Beyond trying to keep people out of employment … (it would) put people out of business." Smith said that right now the hottest product on the wine market are bottles that cost between $7 to $8 and that adding the $5 tax would result in a drastic drop in wine consumption. The initiative's backers would need 434,000 signatures by August 23 to put the measure on the ballot. Some growers and wine lovers said, however, that they would be surprised if California passes a measure that would put a big tax on the state's favorite crop. "I don't think it's good. It would hurt a lot of business in California, especially growers in Monterey County," said Susan Hartsook, of Salinas. "It would be very detrimental to our economy." Last month, a proposal by state Rep. Jim Beall, D-San Jose, to put a nickel tax on all alcohol sales in the state failed to win support from his colleagues. Copyright 2010 by KSBW.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  |
Millions of your friends and neighbors, waiters, bartenders and small business owners who run your local hotels, bars and restaurants will have their jobs threatened this year as lawmakers propose to increase alcohol taxes. The last time Federal taxes were raised on alcohol, $1.3 billion in wages were lost and 98,000 people found themselves out of work.
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