Proposed beer tax would fund alcohol addiction programs
Associated Press Writer
SALEM, Ore. - Advocates of higher beer taxes said Thursday they think most Oregonians would be willing to pay a few cents more per glass for their favorite brew to help fund alcohol addiction programs.
But the beer tax idea went flat almost immediately, with House Speaker Karen Minnis signaling that House Republicans have no intention of bending their no-new-taxes pledge, regardless of the cause.
Further, supporters of the beer tax got into hot water with state police when they tried to hand out free beer to legislators to show them how "cheap" beer is in Oregon.
At a Capitol news conference, advocates of higher beer taxes displayed 12-packs of canned beer that sold in a grocery store for $4.99 - a low price made possible, they said, by Oregon's low taxes.
"Cheap beer is the direct cause of our out-of-control youth alcohol abuse problems and the damage, death and violence it creates," said Howard Scaman, an Alaska activist who's now working to raise Oregon's tax.
Afterward, Scaman went to deliver the 12-packs of low-end beer to legislators' offices but was ordered to stop by Rusty Wolfe, a state police trooper assigned to the Capitol.
Wolfe said the problem with distributing beer to lawmakers' offices was that many are staffed by interns who aren't yet 21 years old - which could leave Scaman open to charges of furnishing minors with alcohol.
Wolfe did not cite Scaman, however.
At issue in the beer tax dispute is Oregon's tax of $2.60 per 31-gallon barrel, which is the 46th lowest in the nation and which hasn't been raised since 1977.
Scaman and other advocates came to the Capitol to support a bill co-sponsored by Rep. Jackie Dingfelder, D-Portland, and Sen. Bill Morrisette, D-Springfield, to boost the beer tax by as much as $33 a barrel - or 10 cents for a 12-ounce bottle.
The increase could raise an estimated $150 million for prevention and treatment of alcohol and drug addiction.
Noting the no-new-taxes environment that pervades the Capitol, the two legislators prefer to call their plan a "cost recovery fee."
"It's not so much a tax as an attempt to collect a long-past-due bill from the beer industry from some of the problems associated with its products," Morrisette said.
To keep from financially harming Oregon's growing microbrew industry, the beer tax would amount to a nickel-a-drink increase on beers produced by small breweries, which would include all Oregon-based breweries.
But beer industry lobbyist Paul Romain, who's persuaded lawmakers to kill previous beer tax hikes, said all beer drinkers shouldn't be saddled with higher prices to help a relatively small number of problem drinkers.
"Don't have Joe six-pack paying for the abusers," Romain said.
Regardless of how Dingfelder and Morrisette want to characterize their proposal, Minnis and other House Republicans view it as nothing but a tax increase, a spokesman for Minnis said.
"I have seen nothing to indicate the House speaker has any interest in this," Chuck Deister said.
(Copyright 2005 by The Associated Press. All Rights Reserved.)