ASAP: Alcohol Tax Makes Policy Sense and Economic 'Cents'

ALBANY, NY (03/18/2009)(readMedia)-- Assemblyman Felix Ortiz (D-Brooklyn) "makes both policy sense and fiscal sense" in proposing an increase in the excise levy on alcoholic beverages the New York Association of Alcoholism and Substance Abuse Providers (ASAP) said today. The increase would generate revenue for New York State and create a fund that would target resources to chemical dependence treatment and prevention across the state.

"There is overwhelming community support for a tax on alcoholic beverages that will be used, in part, to support treatment for those who suffer from the disease of alcoholism and to prevent problem drinking particularly among underage drinkers," said John Coppola, Executive Director of ASAP. Coppola cited a December 12, 2008 poll done by Beck Research, LLC that found that 62 percent of voters support increasing alcohol taxes when first asked about it. The poll also showed that this support increases to 74 percent when voters learn that a tax increase of 10 cents per alcoholic drink would generate up to $500 million while helping to prevent teen drinking, treat alcoholism, and combat drunk driving.

Assemblyman Ortiz' proposal would increase the price of a beer, wine, or mixed drink by about 10 cents per drink, a price that would be barely noticed by consumers, most of whom support such an increase. Answering critics who suggest that the poor would pay a disproportionate amount of the proposed tax, ASAP cited data released by the Center for Science in the Public Interest showing that the bottom 20 percent income bracket will pay only 8 percent of the new tax revenue while the top 20 percent of income earners will pay 38 percent of the tax.

"The time is right for this tax. New York State could use the revenue, and some of it could be used to pay for new treatment, prevention, and recovery services," said Coppola. If drug law reform were to be enacted, advocates point out this new revenue would be especially timely to assist with treatment expansion.

"A dime a drink seems like a very small price for saving a life," Coppola concluded.