Raising Alcohol Excise Taxes: An IOM Strategy to Reduce Youth Alcohol Use
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1 Raising Alcohol Excise Taxes: An IOM Strategy to Reduce Youth Alcohol Use
2 Texans Standing Tall We Are Catalysts for change by educating the public and policy makers on the #1 drug problem in Texas: Underage alcohol use
3
4 Excise Taxes: A Basic Economic Principle Excise taxes have two purposes, to raise revenue and/or to discourage particular behavior.
5 Excise Taxes: Basic Economic Principle Increasing the Price for Alcohol Decreases the Demand for Alcohol
6 Alcohol Excise Tax: Discouraging Damaging Behavior *A 10% increase in the beer tax is associated with a 3.1% reduction in the suicide rate of males *Markowitz, Sara, Estimating Impact of Alcohol Policies on Youth Suicide, March 2003 *A 10% increase in the beer tax is associated with a 2.3% reduction probability of being the victim of severe violence. *Markowitz, S. Alcohol Regulation and Domestic Violence Towards Children, July 1998
7 Alcohol Excise Tax: Discouraging Damaging Behavior Among College Students, a 10% increase in the price of beer is associated with the following: *A 8.9% decrease in the number of drinks of alcohol. *A 4.8% decrease in the probability of getting in trouble with the police. *A 3.6% decrease in the probability of taking advantage of another person sexually or being taken advantage of sexually. Grossman, M. & S. Markowitz, Alcohol Regulation & Violence on College Campuses, 2001
8 Alcohol Excise Tax in Texas The current excise tax rate on beer is $6.00 a barrel, or approximately 0.19 cents per gallon - which adds less than 2 cents to the cost of a 12 oz serving Because beer is taxed by volume and not by the drink, the tax has been essentially inflation proof.
9 1984 The Texas beer excise tax was set at $0.19 cents a gallon A 1st class postage stamp cost $0.20 cents Milk cost $2.26 a gallon Gas was selling at $1.20 per gallon.
10 The Price Isn t Right 16 oz. bottle 16 oz. Can 20 oz. bottle 16 oz. bottle of milk $1.19* of beer$0.99* of soda $1.29* of juice $1.19* *Prices at Austin Area Convenience Stores, Jan.2007
11 Beer Excise Taxes The $0.19 cents tax rate puts Texas behind the average tax rate of all states. The average rate of all states equals $0.26 per gallon, with 32 states falling below that level and 18 states above.
12 A Regional Look at Beer Excise Taxes Tax Rate Per Gallon Per 12oz Serving TEXAS $ cents Arkansas $ cents Louisiana $ cents New Mexico $ cents Oklahoma $ cents
13 Tobacco Excise Tax In May of 2006 the Texas Legislature raised the tobacco excise tax by $1.00 per pack of 20 cigarettes. The increase brought the total excise tax to $1.41 per pack.
14 A Regional Look at Cigarette Excise Taxes Tax Rate Per Pack Per Cigarette TEXAS $ cents Arkansas $ cents Louisiana $ cents New Mexico $ cents Oklahoma $ cents
15 Cigarette Excise Tax Increase Revenue State Comptroller estimates for 2009 predict $1.2 Billion will be collected from the cigarette tax. Discourage Behavior The American Cancer Society Predicts about 143,000 Texans will give up the habit while 284,000 young Texans will be persuaded from ever lighting up.
16 State Excise Taxes Currently Texas collects 7 cents on every cigarette sold Currently Texas collects 1.8 cents on every 12oz serving of beer
17 State Excise Taxes Current estimates project that the State will collect over $1 Billion in cigarette Taxes for 2007* The State will collect an estimated $107 Million in beer excise tax during 2007* *Susan Combs, Texas Comptroller of Public Accounts, Jan, 2007
18 State Excise Taxes For example: In order to match the excise tax collect on one carton of cigarettes The state must collect excise taxes from the sale of oz servings of beer
19 80th Texas Legislature HB 24 Authored By Rep. Frank Corte Jr. R-San Antonio HB 24 authorized municipalities of 1 million or more to collect a 10 cent fee on any individual serving of alcohol sold within the municipality The fee would be used to fund fire and emergency services In the municipality as well as implementing an alcohol awareness program in the public schools. The fee would expire Sept. 1, 2013.
20 Options State-Wide Excise Tax Doubling the current beer tax would Add less than 2 cents per 12oz serving Indexing the Tax to Inflation The beer tax - collected by the barrel, would be adjusted for inflation - rising (or falling) according to the rate of inflation.
21 Alcohol Excise Tax: Dollars Towards Prevention Cost Saving Benefits Research shows that for every $ invested in effective prevention, a savings of up to $10 in treatment for alcohol or other substance abuse can be seen * Aos, S.; Phipps, P.; Barnoski, R.; and Lieb, R. The Comparative Costs and Benefits of Programs to Reduce Crime. Volume 4 ( ). Olympia, WA: Washington State Institute for Public Policy, May 2001
22 Cost of Underage Alcohol Use $5.5 Billion annually in Texas Costs from medical care, work loss, and multiple youth alcohol-related problems, such as Alcohol related violence» Suicide, homicide, aggravated assault, rape Traffic crashes High-risk sex Crime Injuries Poisonings and psychosis Fetal Alcohol Syndrome Youth alcohol treatment
23
24 STAND TALL.. What YOU Can Do! Join Texans Standing Tall Support TST Coalition policy priorities: Increasing Alcohol Excise Tax Keg Registration Reduce alcohol marketing impact on youth Provide Input to House & Senate Committee Hearings
25 TEXANS STANDING TALL Together our many voices become a united message!
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