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Beer Tax Proposed to Go Up 1400%

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What's currently a 2-cent tax on beer could be 30-cents if one zealous freshman San Jose politician gets his way in the state assembly (that means that a barrel of beer would go from $6.40 to $89, and that's just the tax).

Democrat Assemblyman Jim Beall introduced the idea on Thursday saying that it "would generate $2 billion a year to fund health care services, crime prevention and programs to prevent underage drinking and addiction," according to the Los Angeles Newspaper Group.

"The fallout from alcohol consumption costs Californians nearly $36 billion a year in increased health costs, crime, lost productivity and injuries from accidents and abuse," Beall told KNBC. "It's time for the beer industry to help us with the staggering burden it has helped to create." The last time there was a beer tax hike was in 1991.

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The likelihood of it passing is slim as it has to pass a two-thirds vote, not only in the state assembly and senate, but also with the public in the voting booth. Plus, the beer lobby will have a field day with this one.

Beall is known for his initiatives on making it harder to get alcohol. Recently, he successfully raised taxes on alcopops, aka, Smirnoff Ice and other types of malt drinks.

Photo by skampy via Flickr