It’s On Tap

The great state of Oregon is known for a variety of reasons.  Oregon is known for its natural beauty and scenic destinations as well as the abundance of Microbreweries.  Oregon is the Holy Grail for beer connoisseurs, as it has the most Microbreweries per capita in the world.  But this may change in the near future with the proposed beer tax HB 2461.  This bill is in favor of taking a beer tax that is one of the lowest in the nations ($2.60 per barrel = 2 kegs) and raising it to almost $50.00 per barrel.  This generated revenue would be used for programs that deal with alcohol and drug issues. This nearly 2000% increase would hurt the Oregon breweries in the following ways.

• Oregon’s surrounding states have low beer taxes (around $8 per barrel), so what would stop Oregon breweries from moving their sales and manufacturing operations to say California or Washington.  The breweries could then keep their Oregon locations for use as a pub instead of a brewpub.
• The bill targets many programs such as drug and alcohol programs, and drug abuse and prevention campaigns.  If the revenue generated will provide a good for all members of society, shouldn’t all members of society help and pay for these programs instead of Oregon microbreweries and microbrew lovers.
• I feel that this bill doesn’t take into effect how the economic sales will change as result of this bill taking effect.  Sure there will be revenue generate at the state level, but how many people will not buy these tasty beverages because they don’t feel that $14 per six pack is a fair price.

Speculations agree that the bill would effect a pint at the local bar by $.20, but what would stop bars from raising this even higher so they can generate some profit from this bill as well.  We could see a pint raised $.50 or even higher.  Also six packs will raise on average $2.00, this is a huge tax hike that could result in a bigger struggling economy.  Usually taxes have a connection between who is being taxed and what the money is being used for.  Truckers pay taxes per mile for road construction and upkeep, smokers pay for healthcare costs and needs.  What is the connection between microbreweries and drug and anti-teen drinking ads?  I never remember buying or having anyone buy me Microbrew for any parties when I was 17 or 18, it was always what is cheapest and gets everyone hammered (Busch and Pabst was the answer).  How many accidents are caused by Microbrew compared to domestic beer?  It would be way more beneficial to the Oregon economy to allow these Microbreweries to continue to grow so they can receive income nationally instead of locally.  As the demand goes up, then it could be taxed.

Don’t get me wrong, revenue can be generated by the state to be used for its mentioned causes.  Is it better to generate this revenue or to attract new breweries from opening in Oregon which will result in taxes gathered?  Oregon needs to embrace its Microbrew culture and make a stand to keep this bill from passing.  The future of Oregon’s Microbreweries depends on it.