A number of news sources are reporting this morning that five Oregon state lawmakers have proposed a 1,900% increase in the state's tax on beer -- an increase that opponents are calling the single largest beer tax hike in the nation's history.The numbers speak for themselves: Currently, the excise tax on beer in Oregon is $2.60 per barrel. If these legislators have their way, that tax would be raised to $49.61 per barrel. In a CNN video, Kurt Widmer of Portland, Oregon's nationally recognized craft brewer, Widmer Brothers Brewery, says that could amount to an increase of $2 - $4 per six pack.
Oregon ranks next to last among states in its malt beverage taxation rate which hasn't been raised since the 1970s -- probably one of the many reasons why Oregon has such a healthy number of breweries to begin with, featuring award-winning and highly recognizable names such as Rogue Ales, Hair of the Dog and Full Sail (among a laundry list of others). So yes, though a tax hike might bring in more revenue to a state that desperately needs to close a budget gap during these tough economic times, such a price increase could also reduce sales, raising the possibility of lost jobs, which certainly wouldn't help the Oregon economy.
It's the kind of economic riddle being debated all across the country as America tries to dig itself out of its economic crisis. If you happen to have such a conversation over a beer brewed in Oregon, it's one more reminder that no one is immune from the hardship.
[via kgw.com and CNN.com]
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