Pints with Presidents

Which leader of the free world would you like to hoist a pint with at your local pub?

President’s Day is Monday, Feb. 20. TapHunter.com and Pintley.com surveyed more than 3,000 U.S. craft beer drinkers asking them “Which American President would you most like to share a beer with?”  

The results were:

1. Bill Clinton (22.4%)
2. Barack Obama (15.5%)
3. Abraham Lincoln (14.9%)
4. George Washington (14.5%)
5. John Kennedy (10.2%)
6. Ronald Regan (7.7%)
7. George W. Bush (3.6%)

Missing from the list are two presidents that knew a thing or two about beer: Thomas Jefferson, who brewed at Monticello, and Franklin Roosevelt, who lifted the tyranny of Prohibition. Jimmy Carter, who signed the bill that exempted homebrewed beer from excise tax, is also missing from the list.

Oddly, George W. Bush makes this list even though he is said to have stopped drinking long before entering the White House. Abraham Lincoln might also raise some eyebrows, since he implemented the first tax on beer to help fund the Civil War.

Pork and Liquor

The $787 billion economic stimulus that President Barack Obama and the Democrat controlled Congress put in place was criticized earlier this week by Republican Sens. John McCain and Tom Coburn for having at least 100 wasteful projects.

Even though the Congressional Budget Office estimates the stimulus helped to create 1.6 million jobs, the two lawmakers said that at least $7 billion of the $217 billion already spent was either wasted and mismanaged.

Among the projects McCain and Coburn singled out as a poor use of taxpayer funds was a $390,000 State University of New York at Buffalo study of young adults who drink malt liquor and smoke marijuana, and a $219,000 study by the National Institutes of Health looking into whether female college students are more likely to have sex after drinking.

Drinks & Taxes 2009 v17: United States of America

President Barack Obama wants to fix the health care system and make universal coverage available to all Americans. The issue was a major part of his campaign.

The problem is the economy makes paying for the proposal a fairly difficult task. It is estimated that during the next 10 years the federal government could spend up to $1.5 trillion to fund the program.

So the number crunchers in Washington are looking for revenue sources. Guess what one of the targets is? If you said "alcohol" you have passed the test.

The numbers in the tax proposals are still a little squishy, but some media reports say that the tax on liquor will go up and that the rates on beer and wine will be raised to bring them closer to what is charged for spirits. A common number being tossed around has the federal tax on beer going up by as much as $2 a case.

With the Democrats controlling the White House, Senate and House, it's likely the health care plan will get attention fairly soon. If what is happening at the local and state level is any indication, beverage companies and people who enjoy beer, wine and spirits are likely to pay more than their fair share to help fund the new program.

Drinks & Taxes 2009 v16: Massachusetts

All eyes are on the Massachusetts House of Representatives to see if they will try to pass a new 6.25 percent tax on alcohol. The state is the latest to see alcohol taxes as a way to dig out from a budget hole.

The Massachusetts Package Store Association has launched a petition drive against the tax. They claim to have collected 50,000 customer signatures.

A protest against the proposal was held in Boston this week against the measure. The state Senate approved the bill by voice vote. Retailers say the new tax will drive more business to New Hampshire, which has a state store system and no sales tax.

Drinks & Taxes 2009 v15: California

California Assemblyman Jim Beall put forward alcohol tax hike legislation that failed last year. Now he's back with a new approach that would cause taxes on beer, wine and spirits to skyrocket.

The proposal would generate $1.4 billion for California and is supported by the Marin Institute, a long-time anti-alcohol lobbying group.

The Wine Institute says the proposal would "do great harm to one of California's signature industries." The group says the wine industry generates more than 300,000 jobs in the state.

Assemblyman Beall is trying to back door the tax increase by creating a new fee for wholesalers, instead of making it a straight tax. The fee increase requires only a majority of votes in the legislature, while a tax increase in California requires a two-thirds super majority vote.

The new fees to wholesalers would bump the levy paid on beer from 20 cents to $1.27 per gallon; on wine from 20 cents to $2.76 per gallon; and on liquor from $3.30 to $11.83 per gallon.

Drinks & Taxes 2009 v14: Minnesota

Minnesota lawmakers are the latest to decide the way to manage a state budget is through higher taxes on drinks.

A proposal has been introduced that includes higher taxes on beer, wine and spirits, along with increases in taxes on cigarettes and high-income residents.

Lawmakers say it would be the first increase in alcohol taxes in the state since the 1980s. Taxes on a glass of beer or wine would go up a penny, while taxes on liquor would go up 3 cents a drink.

Drinks & Taxes 2009 v13: Delaware

Delaware Gov. Jack Markell wants to close the state's budget gap by increasing the tax on alcohol by 50 percent.

The higher taxes would raise about $6 million that Gov. Markell says the state needs. The price of a six pack of beer would increase about a nickel.

A bill to increase the tax on alcohol died in the Delaware General Assembly last year.

Drinks & Taxes 2009 v12: Indiana

Indiana has a plan to fund sports stadiums and other economic development projects by increasing the tax on beer wine and spirits.

Indiana House Bill 1604 is being called a painless way to raise an estimated $34 million, doubling what is currently collected.

The bill calls for taxes on beer and wine to go up about 1 cent per drink and the tax on liquor to increase about 2 cents a drink.

Drinks & Taxes 2009 v11: Florida

Lawmakers in Florida think they have come up with one solution to help balance a budget with a $6.4 billion deficit: tax beer drinkers.

The bill is still kicking around committee in Tallahassee and no one is brave enough to step forward as a sponsor yet, but those floating the idea have already pointed out the tax on beer in Florida has not been increased since 1993. As soon as someone suggests that it's been a long time since a tax was raised you can expect that is exactly what they have on their minds.

Florida is just one more state looking at beer and other beverages as cash cows. Since alcohol is already heavily taxed it would be more fair to look at other revenue opportunities, but lawmakers would not be able to hide behind the shield of a "sin" tax .

The problem is that most beer drinkers don't consider it a sin to crack open a cold beer after a hard day at work. These people, however, do tend to show up and vote.

Drinks & Taxes 2009 v10: North Carolina

North Carolina Gov. Beverly Perdue's first budget calls for the cutting of 1,000 state jobs and new taxes to help close a $3.4 Billion budget gap.

Part of the tax proposal is a boost to alcohol duties in the Tar Heel state. Gov. Perdue wants to add a 5 percent tax surcharge on alcohol.

North Carolina is just the latest state to target beer, wine and spirits for higher taxes. The move comes at a time when many bars and restaurants are seeing declines in business because of the recession. Gov. Perdue came under fire earlier this year when she announced plans to divert North Carolina Lottery funds earmarked for education to other purposes.

Back to The Roots of NASCAR: Former Driver Charged with Moonshining

NASCAR can trace its history directly to moonshiners who needed fast cars to evade police. In rural Wilkes County, N.C., not far from the disused North Wilkesboro Speedway a former champion proves the sport is still true to its roots.

Dean Combs, 57, was charged recently with making non-tax paid liquor, as well as possessing ingredients to manufacture and possessing equipment to manufacture non-tax paid liquor. Yup, Combs was making moonshine.

Combs was a five-time champion of NASCAR’s Goody's Dash Series, piling up 60 wins in the compact car series. In the early 1980s, he appeared in 24 races in the top level NASCAR series, now known as the Sprint Cup. Ironically, Combs had once served as a crew chief for car owner Junior Johnson, a NASCAR great who was once jailed for bootleg whiskey making and now has a legal moonshine on the market.

Based on some of the photos that have appeared in newspapers like the Winston-Salem Journal and reports from the North Carolina Division of Alcohol Law Enforcement and the Wilkes County Sheriff's Office, Combs was running a pretty elaborate still. The stainless steel equipment included a primary and secondary condenser and used 180 feet of copper tubing. Authorities claim the operation could make 300 gallons of corn whiskey per run. They found 200 gallons of moonshine, 3,000 pounds of sugar and about 1,150 gallons of corn mash be prepared and police believe another batch had recently been finished.

Law enforcement officers say Combs helped them destroy the still and Combs is quoted in local media as saying the agents complimented the product. "They even bragged on it, said they’d never seen spring water that clear,“ he said.

Drinks & Taxes 2009 v9: Clark County, Nevada Medical Society Wants to Hike Alcohol Tax

Nevada is the center of legalized gambling in the U.S. and prostitution is a legitimate way of making a living in some counties, but the Clark County Medical Society believes boosting alcohol taxes is one of the best ways to close a state budget gap.

The Clark County Medical Society is officially calling for a 50 percent increase in taxes on alcohol. It says boosting the "sin tax" can fund education, health care and police.

Estimates are the increase would generate $22 million for the state.

Drinks & Taxes 2009 v8: Maryland is Loaded with Alcohol Tax Proposals

Maryland state legislators have been busy coming up with various schemes to increase the amount of money they collect from citizens enjoying a drink. There are a number of tax proposals floating around the Maryland General Assembly targeting beer, wine and spirits.

Taxes on alcohol in Maryland were last raised about 30 years ago. Consumers pay about 2 cents per drink of wine or spirits and a penny per beer in state taxes. Proposals in Annapolis call for an increase in those taxes to 5 cents per drink.

Shop owners and tavern operators say increasing taxes may cause some customers to cross nearby state lines to make purchases.

Kansas Alcohol Tax May Get Consumed by Budget Woes

Kansas is among a number of states trying to figure out how to come to grips with a budget shortfall. In this economy it is a difficult task. One of the proposals now on the table illustrates why it is difficult to trust all of the new bills recently introduced to increase taxes on beer, wine and spirits to fund specific programs.

Leaders in the city of Salina say they have been told the $480,000 the community receive on an annual basis from state alcohol levies may not show up this year. The city uses the money to fund alcohol treatment programs, parks and recreation programs and the general fund.

It is pretty clear that once the state diverts this money the good citizens of Kansas can kiss it goodbye. It will be time for as local tax increase and you can bet that someone will propose going after beer, wine and spirits to close the gap.

The Government Never Buys a Round

Over the last few weeks Lyke2Drink has made mention of more than a few new tax proposals being introduced around the country that will cause the price of the drinks we enjoy to go up.

It's not that I'm some kind of conservative fanatic that believes all taxes are bad. In fact, I've voted for more Democrats and third party candidates for President than Republicans. Governments need money for programs like public safety, education and the health and welfare of citizens too young, too old or too sick to care for themselves. Unlike some recent appointees in Washington, I actually pay my taxes and I do so on time. However, I believe in most cases I do a better job spending what I earn to stimulate the economy and help social causes than the government.

A major concern is the way governments spend funds meant for one purpose on a variety of other programs, many of which don't have widespread enough support on their own to scrape up the votes for funding. Look at what happened to much of the tobacco settlement money back in the 1990s that was supposed to fund anti-smoking campaigns and health programs.

Now governments from one end of the country to the other are rushing to pass laws that increase taxes on beer, wine and spirits. The standard reason given is to fund alcohol treatment programs, which on the surface sounds like a good thing. The problem is that the statistics do not appear to show a sudden increase in alcohol abuse requiring a massive infusion of funding to pay for new programs. The reality is that most of these new taxes will never go to help a recovering alcoholic or support a family that has felt the impact of the disease.

Instead, when it comes to these new drinks taxes, the government is like one of those bar flies that is happy to accept a drink, but somehow always manages to disappear when it is their turn to buy a round. More importantly, this new wave of taxes will be heaped on what we already pay when we buy a bottle of beer, glass of wine or order a cocktail. Drinkers pay more than their fair share of these so-called sin taxes. (I hate that term by the way, since the Bible says Jesus turned water into wine. I tend to think having a drink is more of a holy experience.)

If you don't believe drinkers are already over taxed, consider these numbers from the Distilled Spirits Council of the United States on the amount of taxes collected on alcohol in 2006, the latest year that figure are available:

Federal Taxes:

Spirits: $4.6 billion
Wine: $877 million
Beer: $3.7 billion

State Taxes:

Spirits: $5.7 billion
Wine: $1.6 billion
Beer: $5.4 billion

Local Taxes:

Spirits: $529 million
Wine: $219 million
Beer: $1.09 billion

Drinks & Taxes 2009 v7: Oregon

In many ways, beer is to Oregon what wine is to California or whiskey is to Kentucky. For that reason, it's amazing to consider that the Oregon Legislature just might boost the tax on beer by more than 1,800 percent.

Lawmakers are now discussing a jump in the excise tax from $2.60 a barrel to $49.61 a barrel. That would add an extra 20 cents a pint to each and every glass of beer produced by Oregon brewers.

Oregon officials say the money would go to fund alcohol and drug treatment programs. The politicians are also responding to polls that show voters are against raising the sales tax.

Currently, Oregon's excise tax on beer -- about a penny a pint -- is one of the lowest in the U.S. Brewers in the state say this has helped build the industry and create jobs. The huge jump in the tax could potentially damage sales and would hinder brewery start ups.

Drinks & Taxes 2009 v6: Arkansas

Arkansas has become the latest state to target alcohol as the cure for budget ills. Instead of taking on additional drinks taxes aimed at consumers, the Arkansas Senate has decided to place a levy on businesses.

The state Senate passed a bill to increase alcohol permit fees for restaurants, liquor stores and wholesalers. The maximum cost for a wholesale beer permit would jump from $1,000 to $5,000, while a restaurant wine permit would go from $50 to $300. The state expects these measures will bring in another $1.2 million.

Keep in mind that these are business that already pay a hefty amount of taxes that go to federal, state and local coffers. One part of the bill would allow on-premise consumption of alcohol to expand to 10 a.m. and midnight, adding four hours to the legal time of operation. The Arkansas House must pass the measure before it goes to the governor.

Drinks & Taxes 2009 v5: Kentucky

The Kentucky legislature is considering a proposal to add a 6 percent tax on all beer, wine and spirits sold in the state.

While industry officials protested the new tax -- several Bourbon distillers dumped whiskey on the steps of the capitol as beer delivery trucks circled the area early this week -- Gov. Steve Beshear urged passage of the bill. Without the new taxes he said the state would have to make cuts to programs.

Kentucky officials face a $456 million revenue shortfall and are considering several new taxes and fees to close the gap.

Drinks & Taxes 2009 v4: Standpoint, Idaho

The city of Standpoint, Idaho, is considering a tax on alcohol sold by the drink to pay for infrastructure improvements to its aging Memorial Field.

Standpoint is considering a 2 percent tax on beer, wine and mixed drink sales in bars and restaurants. Off-premise sales would not be subject to the tax.

A similar proposal failed to pass in 2007. If the city council approves the proposal it would then be placed on the ballot and need the support of 60 percent of the voters to become law.

Standpoint leaders say the stadium needs safety and other improvements. Officials are yet to develop a formal plan or estimate for the project.

Scottish Stimulus: Cut Whisky Duty

The political wrangling over President Obama's economic stimulus plan shows just how divisive different thinking about how to get out of the economic doldrums can be. Imagine if someone suggested cutting the federal excise tax on alcohol producers might the best way to fuel economic growth?

One group is suggesting just that in Scotland.

Gen, an independent economic consulting group, has issued a report that shows a 2.5 percent cut in the duty on Scotch whisky would generate more than double the amount of benefit to the United Kingdom's economy as a similar cut made in 2008 to the Value Added Tax.

The Scottish government says the VAT cut added $474 million to the country's economy. Gen says a cut to the whisky duty would pump $1.09 billion in to the Scottish economy.

Gen is staying neutral on whether the government should make cuts in the duty on whisky, but says a tax cut for the industry would provide a greater payback to the economy than many other stimulus plans.

According to the Scotch Whisky Association, the industry employs more than 22,000 and an additional 16,000 in distribution and retail industries. The industry also attracts significant tourism dollars to Scotland. More than 90 percent of Scotch whisky is exported.

It is highly unlikely that Scotch makers will see a reduction in taxes. Instead, the Gen report is expected to be used to try to stop new duties from being imposed.