Wednesday, May 20, 2009

Pop Saved From Sin Tax

In the hunt for tax dollars to pay for Obama-care, it seems that soda pop has been rescued from the tax collector.

But all is not well. In addition to taxing tobacco (again), HSA's and FSA's as well as employer provided health insurance you may have to pay more next time you want an adult beverage.

Even though we knew that alcohol was in the sights of Congress before, we now have a few more details.
Under the proposal lawmakers are considering, beer taxes would be increased by 48 cents a six-pack, from the current 33 cents. Beer is still the favorite choice of Americans who drink alcohol.

Wine taxes would rise by 49 cents per bottle, from the current 21 cents.

And the tax on hard liquor would increase by 40 cents per fifth, from the current $2.14.

Percentage-wise, wine drinkers would take the biggest hit, a 233 percent tax increase per bottle.

Hard liquor would see the smallest proportional increase, 19 percent per fifth.
The beer tax would rise by 145 percent per six-pack.
Perhaps I should expand my wine cellar and stock up now.

But let's not overlook these salient points.
Senators are focusing on how to pay for expanding health insurance for an estimated 50 million uninsured Americans, a cost that could range to some $1.5 trillion over 10 years.
but . . .
The higher alcohol taxes would bring in nearly $60 billion over 10 years.
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