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Oregon Proposing Largest Beer Tax Hike In The Nation's History

The Rogue Brewery in OregonA 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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Filed under: Food News, Drink Recipes
Tags: beer, excise tax, Oregon, speakin suds, tax, tax hike, Widmer

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Reader comments (Page 1 of 1)

Beach Weddings

2-16-2009 @7:38PM Beach Weddings said... That would kill the Wedding business
Reply

jmail2008

2-16-2009 @7:39PM jmail2008 said... Weddings will not be popular with no drinks
Reply

Jack

2-16-2009 @11:48PM Jack said... Typical big government, dipping their greedy hands in your wallet. Maybe if you're friends with Obama, you're exempt from paying the tax?
Reply

Michael

2-17-2009 @1:55AM Michael said... It's amazing the lengths Oregon has gone to to avoid implementing a sales tax like almost every other state, which would surely bring in more revenue than just taxing beer.
Reply

obnoxious mik

2-17-2009 @8:13PM obnoxious mik said... I can not believe how stupid the legislature can be. Increase the tax by 1900% on a barrel of beer, that’s right 1900%! Holy shit, just brilliant, Oregon is known for its great beer, and now they want to threaten an industry that has contributed to a thriving night life and tourism in the middle of a recession. I have an idea; how about decrease the salary of the state legislature by 1900%. And if the Governor signs the bill, he too should have his salary cut by 1900%.

Mike
Reply

John

3-01-2009 @11:43AM John said... Tax something else! No reason to ruin the better beer being made these days. I can't believe they would think that is a good option.
Reply

brian

3-08-2009 @3:07PM brian said... I've been wearing my "God Save the Beer" shirt every night that I'm out in a bar to raise awareness to this. If we don't make a stink this just might pass in this economy.
Where I got mine:
http://www.cafepress.com/littlebayroot
Reply

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