Tax Plan Leaves Bad Taste for Drinkers

Democratic California assemblyman Jim Beall Jr. has proposed legislation that would increase tax on beer with an aim to fund crime prevention, health care and programs to fight underage drinking and addiction.

Beall's new proposed legislation would increase tax on beer that would generate about $2 billion a year in the state of California.

"Beer is the alcohol of choice for under-age drinkers," Beall told KNBC. "Research tells us that kids who begin drinking before they are 15 are more prone to become alcoholics. They are also more susceptible to alcohol-related problems such as vehicle accidents and assaults later in life than people who wait until they are 21 or older to take their first drink."

Beall, a former Santa Clara County supervisor, claimed the tax could make it more difficult for teens to obtain beer due to its higher price.

"As a minor who drinks, I don't really care," said Valley student Angela Varnes. "Either way, we're all still going to buy or get hold of beer, both minors and adults."

Beall stated the tax could help fund money for emergency and trauma care, prevention and intervention programs, crime prevention, mental health services and treatment, victim assistance, school counseling, and programs to prevent underage drinking.

The current tax per 12-ounce can or bottle is two cents, but the San Jose Democrat proposes raising the beer tax by $1.80 per six-pack, or 30 cents per can - an increase of approximately 1,500 percent.

"Did you know in actuality that would mean that tax on a barrel of beer could go from the current price of about seven dollars to almost 90 dollars?" said student Mario Hernandez. "It doesn't matter though because no matter what, under-aged drinkers would still find a way to get their beer."

A two-thirds majority of the Legislature and voters is necessary to get the tax hike approved. If passed, it would be the first new tax on beer in California since the federal government increasing its beer tax by two cents a can in 1991.

Some Republicans predict it's a hopeless case.

"I predict the shelf life will be very short," said Assemblyman Roger Niello (R-Sacramento). "It's a piecemeal approach to the budget that completely avoids any discussion of spending discipline, which is fundamentally why we have the problem that we have."

During his run in Sacramento, Beall has concentrated a great deal on underage drinking. He is campaigning a separate bill that would force the sweet alcoholic malt beverages known as "alco-pops" to include warning labels stating they contain alcohol.

In 2007, Beall successfully persuaded the state Franchise Tax Board to tax "alco-pops" at the same value to hard liquor products instead of beer - which was expected to raise the price of a six pack by approximately $2. The increase is scheduled to go into effect later this year.