I nearly choked on my craft beer as I read this news-blog article’s title and ensuing body:
Beer tax: Why nail Pabst and not ‘high falutin’ microbrews?
Are Washington’s Democratic state lawmakers microbrew drinking, Merlot swilling elitists?
At a news conference Tuesday Gov. Chris Gregoire was asked to comment on the relative fairness of taxing “macro brews” – your Pabst Blue Ribbons, Budweisers and Schmidts of the world – while exempting “microbrews” and wine. The former brews, it was suggested, are generally enjoyed by blue collar types. The latter are the tipples of choice of yuppie liberals.
Hold on there Sir Stereotype. If there is any factual reporting beyond this opening catastrophe, it will have been drowned out by the loudness of your bias. Let me introduce myself, a craft/microbrew drinker. I work a dead end job that doesn’t pay well. I drive a minivan. That minivan is packed with five kids. I have an unused masters degree in theology. I have a copy of Rothbard’s, “For A New Liberty” sitting next to my elbow as I type on my aged HP computer.
Hardly High Falutin. The reality is, the vast majority of micro brew drinkers is quite the opposite. I have yet to meet one that fits the category.
The author of the article seems to be upset that his/her product of choice (apparently Pabst Blue Ribbon) is subject to a new tax. I understand being upset. But the author is not merely upset at the tax, but at the fairness of the tax. As a result, instead of getting on the phone and petitioning a repeal, they are making an illogical ad hominem attack against the party that so unfairly escaped taxation, the micro beer drinker.
According to the author:
The governor said a general sales tax increase would’ve hurt economic recovery and been borne disproportionately by the poor. Instead, in dealing with a $2.8 billion deficit, lawmakers chose a targeted, $800 million package of eliminating exemptions and imposing tax hikes on beer, soda, candy and bottled water. The beer tax is 50-cents per gallon (28-cents per six pack) through June, 2013. Over the next two years it is expected to bring in $59 million.
But the first 60,000 barrels produced by small brewers is exempt (to qualify as a microbrewer in Washington state a business must make less than 60,000 barrels each year). That means the pale ale, hefeweizen, and amber drinkers of the state won’t be paying more. Gregoire said the fact that microbrews and wines were not included in the tax hikes isn’t elitism, it’s localism. Washington is home to hundreds of small breweries and wineries, which is why, Gregoire said, her husband Mike drinks microbrews and she drinks state wines. (emphasis THFB)
“I heard a little dis on my husband on the floor of the House,” Gregoire said. “Why does my husband drink microbrews?…Because it’s Washington state, Washington state jobs.” (emphasis THFB)
Well. 2.8 billion is a bit of a pickle…a pickle that isn’t going to just go away.
Let me introduce the conundrum that encapsulates the human condition: We want stuff, and we do not want to pay for it. Whether it be a community recreation center, newly paved highways, or health care, we want/need it, but it better come out of someone else’s pockets. We all love communal perks, just not the bill.
The citizen is left with two choices: Keep the stuff and the obligatory taxes, or cut the stuff and keep some change like Colorado Springs is doing. I am not trying to show the superiority of one system over the other, I’m merely trying to show the reality of the scenario, and that being sour grapes over another’s fortune (or escaping of misfortune) does little to solve a problem within your system.
It is clear that the reasoning of the legislatures is as such. Micro beer, not macro beer, is the life blood of Washington. Economists have routinely pointed out that a larger corporation can more easily weather a small tax storm than a small business or a small business start up. Washington cannot bear to see more jobs lost, and perhaps by saving the microbrewery from failure the microbrewery from failure, not only will jobs be saved, but the microbrewery will grow into a larger, more revenue and tax producing corporation. At this point, perhaps the taxation can be eased on the macrobrewery. All the while, the well being of the macro and micro drinker was in consideration.
As a future brewery partner/owner, I hope that at least some of the tax burden for the stuff I don’t use falls on those who do use it. If it doesn’t, I hope I remember this article keep the big picture in mind, and refrain from insulting the one who escapes the burden.
Erik at Top Fermented shared what this clown had to say as well. What a disgrace, what a misconception, what an ass. These wealthy congressmen have no real sense of reality and should maybe point the fingers at themselves. Here’s how I see it…for me, the analogy works well.
I really don’t eat a lot of meat. Andrea and I try to eat it once or twice a week. When we do eat it, I buy good meat, so I spend the money on it. One the other side of it, you have people who eat meat 3 times a day. Let’s say they eat an average of 15 cans of spam a week. Yes, good meat does cost more but people choose to eat it because of its quality. Those same people choose to spend that money on one or two cuts vs. 15 cans of spam. Is it high brow to do this? No! The real point is that people pick their spots where they spend their money.
Instead of drinking several cans of beer a day, I chose to drink one good one and I’m not made of money. Since when is being discriminating about what you eat and drink snobby?
I especially agree about the mirco-brews being made of working class people. Trust me, InBev CEOs and owners are sweating. The funniest part of all is that our own government are the ones responsible for the fact that these adjunct filled beers exists. Prohibition and the subsequent World Wars are the two biggest mitigating factors in the whole situation.
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thanks Mike. I honestly did not know that Eric wrote a similar article…I’m going to have to go check it out.
Very good points on quality vs. quantity.
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beer_scientist Reply:
April 14th, 2010 at 12:51 pm
I didn’t think you did and it was really a pretty short blurb about it. He was his usual surly self (I don’t mean that negatively). Anyway, your view point was different.
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Yep, my lovely state legislators at work. From the moment I heard about this, my thought that this measure was some sort of “tariff” or protectionist measure sparing WA brewers. Last year’s WA Brewers Festival featured nearly 50 breweries from WA state alone. I suspect there are more breweries that either weren’t able to attend or hadn’t begun operations yet. The point is that we have a strong, thriving brewing industry in our state. Currently, Rainier and Olympia (WA’s “versions” of Lone Star) aren’t even brewed in WA anymore. Moreover, they are owned by one of the big boys. Just this morning, the governor confirmed my initial thoughts. They are trying to protect WA businesses.
In examining the caricatures about craft beer drinkers, it seems we have a lot of work to do. It’s evident in the PI article you cited, as well as in the invective of those upset about the tax. Stereotype check. Like you, I drive a minivan with one fewer child than you. My truck is nearly 10 years old. My house is 95. My inbox contains Mises.org daily articles. Conversely, there are white collar folks in my family that drink Miller Lite and Busch Light. It really boils down to preference than political affiliation and socio-economic status.
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More info: WaBeerBlog
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Texas laws are tough on brewers too…your in a tight spot Tex. I def. prefer the Colorado Springs tactic I linked to in the article. Just cut spending.
I too get Mises.org articles. you might like a book called “the church on the market”
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Well, eventually, maybe I can take some cues form Sam Caglione with regard to changing laws when I get back to Texas. They touched on that somewhat on a recent New Brew Thursday. Didn’t know that about him and Dogfish Head. Good stuff!
I’ll look into that book. Danke!
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Tom Woods… shoulda known! I like his stuff.
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Oh how I loathe using the word elitist as derogatory. By that fractured logic, he should hate Ichiro and have him traded from the Mariners and that elite Kobe Bryant should be sent back to Italy from whence he came.
Me, I want elite firefighters, elite politicians and elite brewers. Two out of three ain’t bad.
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Unreal. Stuff like this will encourage small brewers to shut down and move. When you start up your brewery, go to a state that is small business friendly (if there is such a place).
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@scott…great advice. Mike and I have actually discussed this very issue: The beauty of the states system is that it is a natural laboratory for seeing what system works best. If over taxation and litigation drive all the business out of one state and to the next, then the state, if it is smart, will change their laws to accommodate new business. But, throw in all the federal monkey wrenches and progress slows.
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Case in point… Idaho has landed Areva, which could have been in WA.
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