Fact Sheet:

Stop the Beer Tax Rollback
Reject HR 1305

The beer industry wants to make beer even cheaper by rolling back the current federal excise tax on beer to its 1951 level. Beer industry representatives will be in town this week lobbying to add additional co-sponsors to H.R. 1305, a bill to enrich their bottom line. Don’t buy it.

Beer Tax Reductions Will Increase Alcohol-Related Harms

Beer Taxes and Prices are LOW by Historical and International Standards

The Economic and Social Costs of Beer Drinking Dwarf Revenues from Beer Taxes

Beer Taxes Do Not Burden Moderate Drinkers

The Beer Industry Makes Deceptive Claims

References:
(1) Coate, D., & Grossman, M. (1988). The effects of alcoholic beverage prices and legal drinking ages on youth alcohol use. Journal of Law and Economics 31(1):145-171.
(2) Grossman, M.; Coate, D.; & Arluck, G.M. (1987). Price sensitivity of alcoholic beverages in the United States: Youth alcohol consumption. In: Holder, H., ed. Control Issues in Alcohol Abuse Prevention: Strategies for States and Communities. Greenwich, CT: JAI Press, pp. 169-198.
(3) Ruhm, C.J. (1996). Alcohol policies and highway vehicle fatalities. Journal of Health Economics 15(4):435-454.
(4) Saffer, H., & Grossman, M. (1987). Beer taxes, the legal drinking age, and youth motor vehicle fatalities. Journal of Legal Studies 16(2):351-374.
(5) Cook, P. J., & Moore, M. J. (1993). Economic perspectives on reducing alcohol-related violence. In: Martin, S. E., ed. Alcohol and Interpersonal Violence: Fostering Multidisciplinary Perspectives. National Institute on Alcohol Abuse and Alcoholism Research Monograph No. 24. NIH Pub. No. 93-3496. Rockville, MD: the Institute, pp. 193-212.
(6) Grossman, M., Chaloupka, F. J., Saffer, H., & Laixuthai, A. (1994). Effects of alcohol price policy on youth: A summary of economic research. Journal of Research on Adolescence, 4(2):347-364.
(7) Eigen, L. D. (1991). Alcohol Practices, Policies, and Potentials of American Colleges and Universities. Office for Substance Abuse Prevention White Paper. Rockville, MD: U.S. Department of Health and Human Services.
(8) Office of Disease Prevention and Health Promotion. (2000). Healthy People 2010: Understanding and Improving Health. URL: http://www.health.gov/healthypeople/Document/html/uih/uih_bw/uih_4.htm#subsabuse. (Visited, April 9, 2002).
(9) Levy, D. T., Miller, T. R., & Cox, K. C. (1999). Costs of Underage Drinking. Prepared by the Pacific Institute for Research and Evaluation in support of the Office of Juvenile Justice and Delinquency Prevention, Enforcing the Underage Drinking Laws Program.
(10) Hurst, W., Gregory, E., & Gussman, T. (1997). Alcoholic Beverage Taxation and Control Policies. Ontario, Canada: Brewers Association of Canada.
(11) Bureau of Alcohol, Tobacco and Firearms. (2001). Statistical release: Alcohol, tobacco and firearms tax collections. [WWW document]. URL: http://www.atf.treas.gov/alcohol/stats/4thqtr01.pdf. (Visited, April 9, 2002).
(12) Harwood, H. (2000). Updating Estimates of the Economic Costs of Alcohol Abuse in the United States: Estimates, Update Methods and Data. Report prepared by the Lewin Group for the National Institute on Alcohol Abuse and Alcoholism.
(13) McGinnis, J.M. & Foege, W. H. (1999). Mortality and morbidity attributable to use of addictive substances in the United States. Proceedings of the Association of American Physicians, 11(2):109-118.
(14) National Institute on Alcohol Abuse and Alcoholism. (2000). Drinking over the life span: Issues of biology, behavior and risk. In: 10th Special Report to the U.S. Congress on Alcohol and Health. Bethesda, MD: U.S. Department of Health and Human Services, pp. 1-66.
(15) Rogers, J. D., & Greenfield. T. K. (1999). Beer drinking accounts for most of the hazardous alcohol consumption reported in the United States. Journal of Studies on Alcohol, 60(6).
(16) Klein, H., & Pittman, D.J. (1994). The distribution of alcohol consumption in American society. In: Venturelli, P.J. (Ed.) Drug Use in America: Social, Cultural, and Political Perspectives. Boston: Jones and Barlett Publishers, pp. 3-11.

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April 2002