Personal Injury Law

Raising The Tax On Alcohol Reduces Deaths

By Chrissie Cole

Raising state taxes on alcohol can save lives, according to a newly released study.

The findings, published in the American Journal of Public Health, are based on experiences in Alaska, following two legislative moves to increase taxes on beer, wine and liquor in 1983 and 2002.

In the first instance, the research team observed a 29 percent decline in deaths from alcohol-related disease; and in the second, an 11 percent decline.

“The bottom line is, raising alcohol taxes can saves lives,” said Dr. Alexander Wagenaar, lead author and a professor at the University of Florida’s Department of Epidemiology and Health Policy Research. “The raise in taxes resulted in reduction of alcohol consumption, that reduction saved lives.”

The study examined the number of deaths that occurred over the duration of 28 years in Alaska from 1976 to 2004.

Using death certificates, researchers compiled the number of men and women who died from a range of alcohol-related conditions, including alcoholic liver disease, alcohol poisoning and deaths associated with alcohol including chronic pancreatitis and cirrhosis. Not included were alcohol-related deaths that were caused by violence or car accidents.

Researchers found 23 deaths per year were averted after a 1983 tax increase and 21 fewer deaths per year after a 2002 increase.

Supporters of raising beverage taxes say unlike tobacco, alcohol has largely gone under the radar in the U.S.

“When the excise tax on tobacco was raised, consumption declined and as a result tobacco related diseases also declined,” Wagenaar said. “Now, with the current study, we are finding the same to be true for alcohol. Adjusting taxes has a remarkable effect on the rate of alcohol related deaths. They parallel one another quite a bit.”

State governments need to re-examine their alcohol excise tax for fiscal reasons too aside from public health implications, says George Hacker, director of Alcohol Policies Project for the Center for Science in the Public Interest (CSPI).

“Given current state budgets, it’s an available source of revenue that has not been examined for a very long time,” Hacker said. “An increase in tax is long overdue.”

Most states have had the same taxes on alcohol for 20 years or more. Wyoming for instance hasn’t raised its tax on alcohol since the early 1930s, thus failing to keep up with inflation, said Hacker.

The American Beverage Licensees opposes an increase on alcohol tax.

“Historical evidence shows, raising the tax on alcohol would negatively impact the economy,” said Harry Wile, executive director of the American Beverage Licensees (ABL), which represents retailers of beer, wine and spirits. “Increasing the tax on alcohol could lead to diminishing returns for the government if responsible, moderate consumers slow down their consumption.”

“A broad tax increase on alcohol would not target the problem drinker, but simply condemn those who drink responsibly and enjoy wine and spirits,” said Craig Wolf, CEO and President of Wine and Spirits Wholesale of America (WSWA). #

Full post as published by InjuryBoard on November 14, 2008 (boomark / email).