Beer tax on tap for health care?

[ThoughtCriminal]

Beer tax on tap for health care?

WASHINGTON — Joe Six-Pack may have to hand over nearly $2 more for a case of beer to help provide health insurance for all.

Details of the proposed beer tax are described in a Senate Finance Committee document distributed to lawmakers before a closed-door meeting Wednesday. 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.

You can't raise that from beer money alone.

Lawmakers are looking at an extensive list of spending cuts and tax increases, including a new levy on the value of job-based health insurance. The latter proposal seems to be gaining ground. It could lead to higher income taxes for some people with particularly generous job-based health care.

No decisions were expected at the meeting, but Senate Finance Committee Chairman Max Baucus, D-Mont., will use the feedback to shape legislation he intends to introduce in the next few weeks.

While many of the revenue raisers involve obscure provisions of federal law, most consumers can relate to a beer tax.

Taxes on wine and hard liquor would also go up.

And there might be a new tax on soda and other sugary drinks blamed for contributing to obesity. A tax of 3 cents per 12-ounce drink would raise about $50 billion over 10 years, according to congressional estimates. Diet drinks, however, wouldn't be taxed.

The idea behind the proposed increases is to tax lifestyle choices that contribute to rising medical costs. Obesity puts people at risk for diabetes and heart problems. Alcohol abuse is a risk factor in several types of cancer, liver disease and psychological problems.

The soft drink industry and beer and wine producers are already lobbying to stop the proposals before they gain traction. The tax increases would lead to job losses for workers and higher costs for recession weary consumers, say the industries. Wine makers are also pointing to studies that suggest a glass a day can be good for health.

"Singling out wine for higher taxes to reform health care is misguided because wine is part of a healthy diet and lifestyle for millions of Americans," said Robert P. Koch, president of the Wine Institute, which represents California's industry.

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.

Proponents of the idea say it would equalize the tax treatment of alcoholic drinks, by charging the same tax rate based on alcohol content to all. But that would put an end to the current tax advantage enjoyed by beer and wine.

The higher alcohol taxes would bring in nearly $60 billion over 10 years.

[stephpd]

Lawmakers are looking at an extensive list of spending cuts and tax increases, including a new levy on the value of job-based health insurance. The latter proposal seems to be gaining ground. It could lead to higher income taxes for some people with particularly generous job-based health care.

This scares me more then any sin tax. I can see adding a few cents to a soda or beer since they aren't very healthy.

But to raise my taxes because I took a job that pays less so that I can have a good health insurance plan makes no sense. I'd tell them to stuff the insurance, give me that money in cash and make the Government pick up the tab to cover me.

[-JD-]

And you thought the AWB caused a lot of incumbents to go home ...

[MikeB0]

This scares me more then any sin tax. I can see adding a few cents to a soda or beer since they aren't very healthy?

Is that true? There are studies showing a couple beers a night are good for people, much the same as a glass of wine. What kind of soda are we talking about.

It really doesn't matter, it's still a sin tax, maybe with adding soda it will get enough people riled up to say enough is enough. Taxes are out of hand, tax my income, tax my purchases, tax my choice of purchases, it's getting ridiculous. Actually it was already ridiculous, but now it's getting out of hand. No it's always been out of hand, now people are finally starting to take notice. Enough is enough cut the f'ing budget and entitlements already.

[dsnover]

Darn it! When are people going to WAKE UP! The teleprompter in chief was adamant that he would not raise taxes on most people, and yet still intended to give free health care to all, etc, etc. BS. How many nickel and dime taxes will we tolerate? Apparently quite a few. Honestly, I'd rather they give up all of these nickel and dime taxes, and just tell everyone to send in 80% of their paycheck. At least then I'd actually _know_ how much my taxes are. But that's the point, isn't it? If people _knew_ how much they were being taxed, there WOULD be a revolt!

So now they want to tax soft drinks that have sugar, but not the ones with the chemical sweeteners (which are known to cause health problems). Wanna bet there are lobbyists from the chemical and artificial sweetener industries behind that?!

[Emptymag]

This scares me more then any sin tax. I can see adding a few cents to a soda or beer since they aren't very healthy.

But to raise my taxes because I took a job that pays less so that I can have a good health insurance plan makes no sense. I'd tell them to stuff the insurance, give me that money in cash and make the Government pick up the tab to cover me.

THAT sort of thinking is why this country is as screwed up as it is.

That's a "feel good" way of looking at things. Look at these taxes for what they are, rather than what they are made to look like.

Adding tax to soda will not reduce consumption, or make anyone more "healthy". It will however, generate more money in tax revenue. That is the bottom line.

[addicted2freedom]

This scares me more then any sin tax. I can see adding a few cents to a soda or beer since they aren't very healthy.

But to raise my taxes because I took a job that pays less so that I can have a good health insurance plan makes no sense. I'd tell them to stuff the insurance, give me that money in cash and make the Government pick up the tab to cover me.

Who cares if they aren't healthy? That's no justification for the GOVERNMENT to tax those products. The government should not be involved with health care in the first place. Let the health insurance companies deal with it. If someone drinks 10 sodas a day and 10 beers a day, their premium should be higher.

[nfafan]

Is that true? There are studies showing a couple beers a night are good for people, much the same as a glass of wine.

<snip>

It's waay outta control these days... They pay no attention to the "balance" needed in life.

With sin-taxes and restrictions on us smokers, they drove us to quit by the millions and have now lost a massive portion of a once-steady revenue stream... While facing having to pay out more for Medicare and SS to the now longer-living.

With Detroit, they're gonna be forced to scramble to build pretty much just tiny cars - as that is the best way to quickly get the average fuel economy waay up - despite safety experts saying that highway deaths will increase.

Keep that old lead-sled and take up home-brewing. Maybe Washington and Harrisburg will learn to live within their means.

[addicted2freedom]

This scares me more then any sin tax. I can see adding a few cents to a soda or beer since they aren't very healthy.

But to raise my taxes because I took a job that pays less so that I can have a good health insurance plan makes no sense. I'd tell them to stuff the insurance, give me that money in cash and make the Government pick up the tab to cover me.

Also, to address the health aspects of soda... read up on high fructose corn syrup (HFCS), sucralose, and aspartame. These are all sugar substitutes supported by the government in the name of improving health... but instead are harmful to health because of their chemically altered nature, but also because they are insufficient in quenching our natural need for sugar causing us to eat more.

There was a study that showed people that drank soda containing HFCS were more overweight than people that didn't. I'll find that article today.

[Posit]

Several things wrong with this idea. A targeted user tax which goes to support non users is basically unfair in any context. The real problem, however, is Obama's promise of universal health care... if anyone believes that government sponsored, or government subsidized, health care is gonna be 'free', they need to come into the real world. We're gonna pay for it, whatever the tax basis. And if anyone believes he's really gonna lower taxes while providing new entitlements, they are really out of touch with reality.

Our duly elected representatives realize more money is required... I think they're just floundering with ideas on how to come up with it