Beer tax proposal aimed to help treatment programs

State hasn't raised rate in 40 years, opposition says Wisconsin taxes too much already

By: Nathan Knox

Posted: 5/7/09

A tax increase is a touchy subject, especially when legislators want to bump a tax up by 500 percent.

Rep. Terese Berceau (D-Madison) proposed a bill last week that aims to increase the tax on a barrel of beer from $2 to $10, an increase of about 2.5 cents per bottle. The current tax, which is .6 cents per bottle, has not seen an increase in over 40 years.

Berceau said some people view beer as sacred and something that shouldn't be taxed, but in reality, Wisconsin has an alcohol problem that needs to be treated. The funds, Berceau said, will be used to create alcohol treatment programs for the long list of people who need it; it will also work to bring down the drunk driving numbers for the state.

"The issue is we have a national reputation for binge drinking," Berceau said. "We're not talking about the person who has a beer with dinner."

Berceau said the tax is best illustrated by this example: "if someone drinks a six-pack everyday for a week, that person will only pay an additional dollar for the week."

Though Berceau argues the tax will help benefit Wisconsin and its residents, the proposal is seeing opposition.

Peter Madland, executive director for the Tavern League of Wisconsin, said the tax targets lower and middle-income people, adding that the tax will cost jobs.

"Beer is a major part of Wisconsin culture and always has been, and we don't want people to lose sight of that and be taxed further," Madland said.

Wisconsin is already one of the highest taxed states in the country, Madland said, and the tax is coming at a terrible time. He added that there are already taxes on cigarettes and shouldn't extend to beer as well.

UW-Eau Claire senior Chris Hagens agrees with Madland and said the proposal is a regressive tax and is an awful idea.

"By increasing the tax on microbreweries and bars, it will affect us indirectly as consumers," Hagens said. "Bars can easily make up for it; it's the consumer that will be hit. They can easily pawn off the price increase on us."

Berceau refuted this claim, saying microbreweries are only taxed at half the rate, so it won't affect them if at all. According to Berceau's Web site, producers that brew less than 300,000 barrels a year pay only half of the tax on the first 50,000 barrels. She added that even Miller Brewing Co., one of the largest brewers in the country, is only taxed 30 percent because beer produced in Wisconsin exported elsewhere is exempt from the beer tax.

Berceau said the tax increase is a small price to pay for helping people and pay for treatment programs.

"You can say we just need to change the (Wisconsin) culture," Berceau said, "but when we don't have the funds to help change things, there's not a whole lot that can be done."