New York Times faces backlash for tax hike claims
Spirits United has slammed an opinion video published by the New York Times that claims raising taxes on alcohol makes people drink less.
The opinion piece cites a study that was published in 2010, which included data from 1911.
The New York Times said excise tax rates were based on a fixed amount per volume of alcohol, but lose value with inflation unless they are raised.
It argued that as a result, researchers said the costs of alcohol-related harm have “dwarfed alcohol tax revenues”.
The New York Times cited Philip J Cook, a Duke University professor emeritus and an expert on alcohol policy, who said the solution to reducing alcohol-related harm was higher taxes.
‘Vote no’
Spirits United is a community of advocates working to promote the enjoyment of distilled spirits. Partner organisations include the American Distilling Institute, Bourbon Women, Tales of the Cocktail Foundation, Texas Whiskey Association, and the United States Bartenders’ Guild, to name a few.
The group is urging people to ‘vote no’ in response to the poll at the end of the New York Times article, which asks: “After watching the video, do you think raising alcohol taxes is a good idea?”
Spirits United highlighted that distilled spirits in the US are ‘already one of the highest taxed consumer products’. At present, 53% of the price of a typical bottle of spirits comprises taxes and fees, Spirits United said.
A typical 750ml bottle of spirits costs US$15.17, meaning US$8.11 goes towards taxes and fees.
Furthermore, the group noted that underage consumption and binge drinking has been falling in the US since 2010.
A recent study in Illinois found the state’s alcohol tax increase did not curb alcohol consumption, but instead resulted in consumers switching to cheaper products.
Spirits United also stressed that restaurants and bars were still recovering from Covid-19 pandemic lockdowns, combined with rising inflation and staff shortages. It warned this would be the “worst time” to increase alcohol tax.
In the UK spring budget earlier this year, chancellor Jeremy Hunt announced one of the biggest tax hikes in recent decades for spirits, which is due to come into effect in August.
Commenting on the budget, the chief executive of the Scotch Whisky Association, Mark Kent, said: “This is a historic blow to the Scotch whisky industry.”
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