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Excise Tax Regressivity
Excise taxes violate tax both major tax fairness principles, but especially do so for the aspect concerned with people paying taxes in accordance with their capacity to pay them. As such, beer taxes impose a tax burden directly opposite that of progressive taxes and are even less fair than a flat tax. Beer taxes are regressive because they take up a greater share of income for lower- and middle-income households to pay the tax than they do for higher income households.
Beer Tax Facts, 2008
The economic and societal impacts of state and federal taxes on beer.
Beer Serves America, 2008 The beer industry contributes more than $198 billion to the U.S. economy, The industry's economic impact includes almost1.9 million jobs paying almost $62 billion in wages. The beer industry also contributes more than $41billion in federal, state and local excise, business and consumption.
Tax Burden on the Industry The tax burden borne by beer sonsumers is more than 68% higher than the average for the U.S. economy. Taxes represent 40.8% of the retail price of beer. In comparison, total Federal, state, and local taxes equal 24.2% of final sales of all products (GNP) in the U.S.
Signs of Progress View up-to-date statistics for trends in underage drinking, drunk driving and teen drunk driving.
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