Evening star., 1933-12-30
Proposed D. C. Liquor Taxes.

Proposed D. C. Liquor Taxes.
The proposed scale OF taxation Of
alcoholic beverages tentatively set down
IN their control bill by the Commits
sioners raises a few points that will
bear further examination.
In the first place, it is proposed to
eliminate the existing local sales tax Of
ST. a barrel on beer. 1t is assumed that
this proposal is based on the hope Of
cheapening beer and encouraging its
consumption in preference to the hard
liquors" That principle is generally
recognized as being sound. But does
the elimination of the sales tax on beer,
as proposed in this bill do great deal
10 strengthen that principle? II 1t does
not. can the District government, hard
pressed on every side for more revenue,
generously forego the collection of
tax that in the eight months beginning
In April and ending November 30
yielded S125. 76O?
The tax of dollar a barrel on beer
amounts to a little more than three
cents a gallon, less than cent quart
and a tiny fraction of a cent for a
large glass Now, if it is the aim of
the Commissioners or their advisers to
make beer sell for five cents a large
glass what progress has been made in
that direction by reducing the cost of
Fr, ,cAI@ 1f
o cent a glass;. A large glass or stein
of beer now sells for five, ten or fifteen
cents, depending upon the brand Of
beer
A part of the tax on beer, of course,
Is represented in the license tax. Now
let us examine the difference in license
fees under the beer law and under the
proposed control bill The comparison
may be made as follows:
Present law. Proposed rate.
Taverns (none alloWed) $3.50
Wholesale $3.50 $50
Retail 100 rs
Manufacturer 1000 $500
In the case of breweries the license
fee is increased S1,500 For the whole
saler it is increased $500. For the re-
taller it is reduced S25. These changes
would probably have no more effect ON
the price to the consumer than the
elimination Of the sales tax, which Is
now collected from the retailer. But If
there was any effect, it would probably
be to increase the price of beer to the
yetailer.
The licensing of beer taverns may
have the effect of increasing the sale
Of beer and by that method lowering
the price. That is, of course, to be
demonstrated.
But in the meantime the National
Government shows no indication Of
eliminating the Federal tax on the sale
OF beer. The House Ways and Means
Committee has decided to retain the
present S5-a-barrel Federal tax on beer.
1t proposes to lose no revenues from the
consumption of beer. Why should the
District of Columbia give up ira
eitional source of revenue for doubtful
experiment. The experiment Of lessen
ing the consumption of hard liquor by
making beer and wine cheap is also
predicated on the theory that hard
liquors should be expensive. The ex-
1eriment's possibility of success Is
weakened, of course, when both beer
and hard liquor are made cheap.
The proposed tax of fifty cents
gallon on distilled liquor is to be
compared with the proposed 81 Federal
tax. That 81 Federal tax was estab-
lished, it is said, with the hope OF
making good whisky available at Sl.5O
q quart. This price took into considera-
bon, of course, the various taxes imposed
by the States. 1t was made low with
the idea that cheap whisky would drive
the bootlegger out of business. But if
Maryland's liquor sales tax is S1.10
gallon, and the Districts sales tax is
to be fifty cents a gallon, does it fol-
low that bootleggers will infeSt the
State of Maryland and leave the people
o tax differential of fifteen cents
quart? That does not sound logical
But it will be perfectly obvious that the
District is failing to collect fifty per
cent of the revenue it might collect,
with no appreciable difference shown
IN the bootlegging situation and with
the sale of hard liquors encouraged by
the effort to cheaper them.
There is talk Of the Districts being
given a model liquor law. But model
liquor law for the District should not
presuppose condition wherein the local
government is to be denied revenues
collected in other Jurisdictions from the
sale of liquor and with no convincing
proof that the rate of alcoholic beverage
taxation has anything to do with law
observance and wiping out the boot
logger.
IT, Il,