A National Academy of Sciences report released last week proposed an increase in the excise tax on alcohol, specifically beer, as a way to reduce underage drinking.
According to the report, underage drinking costs tax payers $53 billion a year. Drinking-related traffic accidents for minors alone cost $19 billion nationwide.
The report suggests that increasing the cost of beer by raising excise taxes would effectively reduce beer consumption by minors.
The report also blames the entertainment industry for glorifying alcohol consumption to minors and calls for the creation of an impartial foundation funded by the alcohol industry to monitor underage drinking.
There has been widespread response to the report from non-profit foundations and the alcohol industry.
"When you're a college student, you don't have much money," said Carter Hill, chair of the Virginia chapter of MADD. "If [beer] costs more, [college students] might not be able to buy as much."
Citing a Journal of Health Economics study, Hill claimed a direct correlation exists between beer prices and underage drinking.
"For every 1 percent increase in beer price, there is a 1.4 percent decrease in 18-20 year old traffic fatalities," he said.
Federal alcohol taxes were last raised in 1991, when the excise tax was doubled, resulting in a 9 percent drop in beer sales in Virginia, according to Dennis Gallagher, President of the Virginia Beer Wholesalers Association.
"When taxes are increased, sales go down," Gallagher said.
He added that discussion of alcohol issues is beneficial, but questioned the legitimacy of the report.
"This report seems to have been done without any serious thought [as] to what the alcohol industry has done in response," he said.
Gallagher also took issue with the composition of the reporting body.
"If the deck was truly stacked [against the alcohol industry] then you have a serious credibility problem," he said.
The federal excise tax on beer is currently 33 cents per 6-pack, according to the Beer Institute, the national trade association for the malt beverage industry.
The Commonwealth utilizes an uncommon method of taxing beer depending on container size, adding around 16 cents per 6-pack. Virginia's tax on beer is about average compared to other states.
Governor Mark R. Warner received a report Aug. 27 and five legislative recommendations from the Task Force to Combat Driving Under the Influence of Drugs and Alcohol.
Gallagher said he is more interested in the task force's report than the National Academy's study.
The legislative actions resulting from the task force report will more directly affect the beer taxes in Virginia, according to Gallagher.
In response to the proposition of increased beer taxes, Gallagher voiced an opinion similar to that of other alcohol industry officials.
"To try to engineer a social problem out of existence [through taxation] is unfair to people who use a product responsibly," he said.
Read More
U.Va. Faculty Senate overwhelmingly adopts a no confidence vote in Board of Visitors
By Xander Tilock | 14 hours ago"The Faculty Senate expresses no confidence in the Board of Visitors for not protecting the University and its president from outside interference," the resolution read.
Faculty Senate Executives hear from Rector Sheridan and Vice Rector Wilkinson
By Xander Tilock and Grace Traxler | YesterdayRectors were in attendance for part of Wednesday’s emergency meeting and were asked about the interim president selection process.
Student leaders weigh the future of self-governance after Ryan's departure
By Brendon Bordwine | 2 days agoThe University has a historical tradition of student self-governance, which allows students to take part in decision-making processes.
