Early this week the Massachusetts state senate approved the increase of the state sales tax from 5% to 6.25%. That alone is upsetting given the level of taxation that the citizens of Massachusetts are already subjected to and the way some of the tax funds are spent. But how about this… alcohol sales tax has now increased from 0% to 6.25%. That’s because alcohol sales were until now exempt from sales tax at the register. This exemption has now been removed. Just like that, my $16 bottle of Chardonnay went up by 6.25% to $17, obviously decreasing my wine’s quality to price ratio besides other negative impacts to Travessia as a business.
Some may argue that it’s only fair that alcohol gets taxed like everything else. But here is the problem... Massachusetts lawmakers won't tell you this, but there is already a tax on alcohol!
Wineries for example pay a tax for producing wine to both the Federal and State government. What do you think that we the wineries do with this tax? We factor it into our pricing. In the end, the consumer pays for it. Now with another 6.25% added on top... I think we call this double taxation.
I understand and agree that we have social responsibilities and must pay taxes. I've always paid my taxes as a citizen and as a business owner. Not a single penny goes under the table. But where do we stop? Why 6.25% and not 8%? 10%? 15%
To finish, this is a quote from a Boston Globe article on May 20th (Find the entire article here)
<<The alcohol tax was approved with support from lawmakers who said it would raise $15 million to ameliorate what they described as a heroin epidemic in Massachusetts. "When we have an addict, we'll have a bed for them," said Senator Steven A. Tolman, a Boston Democrat. "This money will help us put these beds on line.">>
Like many, my work day begins at 6AM and ends the following day... So that heroin addicts can have a bed to sleep in?
UPDATE on May 22nd - 1PM: Just found out about this... maybe I should just give it up right now: Proposed US alcohol tax increases







They say the tax increase is to fund national health care reform...are you freaking kidding me!! I also find it funny that our health insurance at Titleist goes up every year...well I should say EVERYTHING around us goes up every year...but the one thing that doesn't go up is our wages. When is the camels back finally going to break?
Posted by: Derek F. | May 23, 2009 at 09:30 AM
Now that’s a statement that’ll make you spew coffee all over your morning paper! I couldn’t agree with you more here, Marco – linking alcohol consumption with heroin use is pretty twisted.
I’m guessing that drug treatment advocates have a lot more clout in the state legislature than Massachusetts winemakers and craft brewers, members of a small but growing industry. The Senators probably don’t even know they will be hurting local wineries and, by extension, local farms.
Hopefully we’ll never see the same level of punitive “sin tax” placed on beer and wine that we now have for tobacco in this state! The Democrats used to be the anti-prohibition party, but I don’t like where they seem to be taking things today.
Posted by: Ben | May 24, 2009 at 02:16 PM
Current taxes on beverage alcohol in Massachusetts are already high and unjustifiable. The proposal to extend the sales tax increase to alcohol will just add insult to injury, as the prices of beer, wine and spirits will rise, punishing responsible, legal drinking aged consumers. Meanwhile, retail sales will also decline and workers – that’s waitresses and waiters, bartenders and local retail workers - in the Massachusetts hospitality industry will lose their jobs.
Please visit www.axetaxesnotjobs.com to let your representatives know that proposed tax increases are bad for Massachusetts.
Posted by: ShareYourVoice | May 27, 2009 at 05:09 PM
Great take on this terrible decision! Wine, liquor and beer are already taxed when they enter the state, this is adding yet another tax level to the end consumer. I feel for the north shore retailers that will suffer as their customers flock to New Hampshire to make their purchases, not just on wine, but everything else for that matter. It's insane, we continue to vote these people into office, but then we drive out of state to shop because they do exactly what we knew they would do. Raise taxes. Vote 'em all out. Every one of them.
So now we have a 6.25% sales tax on wine. The ABCC is attempting to rewrite the out of state shipping law so we can no longer ship out of state. OOS wineries can't ship in.
No thanks. I'll take it elsewhere first chance I get.
Posted by: Craig | May 28, 2009 at 07:13 AM
Derek, Ben, Craig, and the person who left the comment under "ShareYourVoice"...
I think we are all on the same page. I wonder if anyone who read this disagrees with our point of view... would love to hear their arguments. In any case, I think Craig nails it... Massachusetts can't keep voting these people into office if we ever want to see our money treated with respect.
Thanks to all for reading.
Posted by: Marco Montez | May 28, 2009 at 10:40 PM
The title and closing of this blog are utterly offensive. I'm stunned to see a business owner advertise their own ignorance.
Posted by: Bill Shallworth | May 31, 2009 at 10:36 PM
Bill Shallworth, thanks for your comment. My apologies if I offended you and anyone with the title and anything I wrote in this post. It was certainly not my intent to offend anyone.
Let me point out that the title of my blog post is a quote from one of our elected officials. I just added the question mark to it because it's hard for me to believe that someone would verbally present this explanation to justify the increase in the tax rate. I did not make the statement up.
Now that you've established that I'm ignorant, it would be great and constructive if you would explain exactly what your point of view is and why you believe that the main message in my blog post is wrong.
Whatever your point of view may be and whether you decide to share it here or not... thanks for reading.
Posted by: Marco Montez | June 01, 2009 at 11:36 AM
Mr. Shallworth: Congratulations, you added nothing to the conversation but an ad hominem attack.
Another thought: It’s odd that Obama wants to use an alcohol tax to fund his national health care. I’m not a doctor, but there seems to be good evidence that there are health benefits for the way most of us consume alcohol - moderately. Somehow I don’t think that matters though – public policy is often guided more by social attitudes than actual science.
Posted by: Ben | June 07, 2009 at 07:24 PM
Heroin is a modified form of morphine obtained by acetylating morphine with acetic acid, so that both hydroxyl groups are modified. Chemically, therefore, it is diacetyl morphine. It is about three times more potent than morphine, and because of its increased lipid solubility it rapidly enters the brain. Addicts claim it gives a better ‘rush’ when injected intravenously. Heroin is now only rarely used to treat intractable pain, as appropriate dosing regimens can maintain analgesia using morphine or other drugs.
-jomie-
http://www.oceanhillsrecovery.com
Posted by: heroin addiction treatment | June 17, 2009 at 03:13 AM
The state of Massachusetts can either one pay for more DPH beds at detoxs and further treatment facilities or than can pay for burial plots because for any addict alcohol or herion thats where someone will end up if they don't get the right type or treatment. Sen. Tolman is trying to prevent famlies of addicts from feeling that unbearable pain of buring a loved one.If your buying that alcohol that has the now raised tax on it you may be helping a addict save their life.Think out side the bottle.
Posted by: Aly | October 04, 2009 at 09:27 PM
Hi Aly, thanks for your comment and for expressing your point of view. I don't want to repeat myself in regards to the many different forms of taxation that already existed previously and from which money could have and should have been set aside for the types of programs that you refer to. In a couple of years we'll know if implementing this new tax had a direct impact in decreasing the number of deaths in Massachusetts due to alcohol or heroin addiction.
Thanks again for sharing your opinion.
Posted by: Marco Montez | October 04, 2009 at 10:03 PM