20080121

1,550% tax hike on malt beverages

From The Heartland Institute's "Budget & Tax News":
In a move that has roused constitutional and legal concerns in California, the State Board of Equalization has voted to uphold a ruling that amounts to a huge stealth tax increase on certain alcoholic beverages.

With a vote of 3 to 2, the board raised the tax on flavored malt beverages, such as Smirnoff Ice, from 20 cents to $3.30 a gallon. They did so by changing the classification of the beverages from beer to distilled spirits.

The reclassification must be approved by the Governor's Office of Administrative Law. Should it stick, the reclassification would amount to a tax increase of 1,550%.
You can read the full story here.

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1 comment:

Carmen Delmolari said...

I have always considered products such as these to be the final insult to the concept of beer.

Light beer is a cruel enough joke (and con) to pull upon the consumer, but to take a beer product, remove the color, remove the flavor , then add bits of foo-foo flavoring and then have the temerity to call it a “premium product”, is the height of insult.

If it gets taxed out of existence, it will be no loss.