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August 15, 2007

Smirnoff Ice & Other Malt Drinks Targeted for Tax Hike in LA Times Alcohol Industry Biased Article

Teens doing

Fun froo-froo drinks like Smirnoff Ice, Seagram's Coolers, Bacardi Silver and Mike's Hard Lemonade got a vote of approval in the form of a $3.10 per gallon tax (from 2-cents for a 12 oz. bottle to 31-cents), raising the price of six-pack malt liquors near $2.00. The proposed tax increase is due to reclassification of "alcopops" from beer to distilled spirits. The process for the increased tax could take a year to complete.

Interestingly enough, according to an article in the LA Times today, the "lobbyists" pushing for this change were teenagers: "'I was tired of seeing my peers drink these products,' said Jimmy Jordan, an 18-year-old from the Sacramento area who helped draft the petition. 'I was tired of seeing people drinking and doing dumb things.'

According to the ">petition (.pdf), the teenagers represent Friday Night Live, S.M.A.C.C. and the California Youth Council.

Kudos to the group of teens for getting active and petitioning around the state for this tax hike (but who is funding you?). However, $2 ain't going to stop "dumb things" from happening ever.

Sorry, but this proposed tax seems to have good intentions with piss poor reasoning. That is, if you only read what the LA Times fed you.

What the Times only mentions as an after-effect of the tax, happens to be the main point of the petition's argument: a potential loss of $40 million in taxes due to the misclassification. Instead, the Times focuses on lame quotes that make the tax hike sound ridiculous:

"The ruling will send a signal to youth that these drinks are hard liquor because they have costs similar to hard liquor," said board [of Equalization] member Judy Chu of Monterey Park, one of the three Democrats to vote for the change.

"Send a signal to youth that these drinks are hard liquor because they have costs similar to hard liquor"? Really? Oh yeah, I forgot about my teenage boyhood of going to the grocery store and performing cross-comparison price analysis.

Let's get real folks.

Yes, there is the feel good sugar coating aspect in this proposal. Yes, maybe teens really had it in their hearts to use the tax for social change. But when it comes down to it, this is all about money. The tax hike would never pass solely on the reasoning teenagers don't have an extra couple bucks in their pockets or debit card accounts. Maybe taxing medical marijuana would reduce those recreational users from faking their way into a doctor's note. Yeah, no.

We doubt the Times is in bed with the alcohol lobby, but this article had a hint of bad breath after a night of heavy drinking.

To receive e-mail updates from the BOE about this specific issue, you can sign up on their website (now that is a measure if genius in constituent relations!).

Photo by ouverture via Flickr

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Comments (8) [rss]

It's actually kind of interesting. It would be a lot cheaper and easier (and quite possibly tastier) for Smirnoff et al to make these drinks with spirits and a bit of soda. They currently go through a lot of effort to make a weird flavorless beer solution that they then sweeten just to get around this tax.

They're currently correctly classified in a stupid system that cares not how much alcohol is in a fluid, but whether the alcohol has ever seen a still.

 

Well, yes the LA times didnt use the best quotes, but they did the issue across, thats what we intended to do, these drinks are targeted to us as young people. The tax hike may or may not decrease the access to young people, but this is just the first step, of many more to come on this issue.

 

Charge straight dudes extra for these things. No man should be drinkin no "alcopops". Use that money to subsidize an alcopop discount for slutty chicks.

 

Ahhhh... politicians don't you love the way they think.

 

Random anonymous guest,

Calling a beer-derived beverage a distilled spirit for the purposes of charging an extra 25 cents a bottle is as monstrously dumb as calling a skateboard a car so you can charge kids a nickel a month for insurance to dissuade them from riding in your neighborhood.

 

This will obviously do nothing to discourage teen drinking.

 

The problem and reason they changed the tax structure on RTD beverages is that a number of them were deriving more than legally allowed amount of ethanol from their spirit based flavorings. That's a big no-no and something that was making non-RTD involved brewers furious.

 

if "Alcopop's" are an alcoholic drink (hello) why shouldnt they be taxed like other alcoholic drinks. My nephew is one of the ones fighting for this, and while a tax is not the best way to discourage drinking (hey maybe only 2 6packs instead of 3) then retail outlets need to better enforce the laws already in place to keep them from buying and new ones should be passed to make adults who buy for them (for other than consumption in their own home where they can control the outcome, at least somewhat) accountable for their actions and the actions of the teens that they "helped" (or to be politically correct, "enabled") or maybe change the packaging to standout so it doesnt look like a soda/tea can, IE: no fancy colors, big logo to identify as alcoholic, etc.

personally, I am proud that he has risen above peer-pressure and teen stupidity and is making a stand, especially as it is so unpopular amongst his fellow students, but that is what a "leader" is supposed to do, to help the majority of people, yes even sometimes against their will, or who think "I can't make a difference, so why try?", or do some of you think it is ok to drive drunk, no license, hey why not do away with speed limits altogether. Yes some laws are totally with out merit, but you have to use what's in place, until you are in the position to make bigger changes.

Terrance Timmons

 
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