Hey Michigan, Rep. Tom Hooker wants to nearly triple state beer excise taxes

We can’t tax ourselves into prosperity, and we can’t tax our way to utopia via federal and state prevention initiatives. We get that Michigan State Rep. Thomas Hooker is maybe trying to do a good thing here, but it’s at the cost of a bad thing, which is taking much-needed income from Michigan’s booming craft beer industry. He wants to raise excise taxes on beer in the state to raise funds for organizations that treat alcohol-related issues ranging from fetal alcohol syndrome to rehabilitation clinics (which is noble), but he’s also taking aim at Michigan and calling craft beer a bad thing (which is kind of a dick move). From a story on MiBiz.com:

“At one time, Grand Rapids was considered the city of churches and now it’s considered Beer City — I’m not sure that’s a positive thing. With that, you have the health issues,” Hooker told MiBiz. “It’s nothing more than a user fee that comes a result of alcohol abuse and use.”

Hooker argues that he, as a non-drinker, should not have to pay for mitigating health issues that result from beer overconsumption.

Ah, we see, Mr. Hooker. You don’t want the alcohol-related problems that drinkers bring to the community table. You’d just like to reap the financial and tourism rewards that these products bring to your mighty Wolverine State. So by that rational, should we be overtaxing fast food restaurants like Big Boy, which is based in Warren, Mich. (basically Detroit)? By its very name alone, Big Boy exudes the overindulgence of our overeating American culture, and it looks like Hooker’s maybe had a burger or two in his lifetime. In contrast, craft drinkers are usually health-conscious consumers (check out this article)

Michigan’s craft beer industry generates $1.8 billion, and a beer excise tax is only going to hurt local brewed beer and craft consumers. Look at these gobsmacking numbers: House Bill 5873 would raise taxes on beer from $6.30 to $21.70 per barrel, a whopping 244 percent increase. The new tax would be the equivalent of 6.5 cents per 12-ounce bottle/can of beer. From MiBiz:

While the 6.5-cent per can tax may seem modest, the legislation could increase the price of a six pack by as much as $2 once those costs are rolled up through the distribution and retail channels, according to craft brewers contacted for this report.

“I think he is understating the negative impact that consumers and the industry would incur,” said Scott Newman-Bale, a partner at Bellaire-based Short’s Brewing Co. who also co-chairs the government affairs committee for the Michigan Brewers Guild, where he serves as treasurer. “The increase would be grossed up by the state-mandated distribution channel, so by the time the consumer buys the beer, the impact will be huge.”

The Michigan Beer and Wine Wholesalers Association also issued a statement:

“A tax increase of this magnitude would put Michigan businesses at a tremendous disadvantage with neighboring states and hurt a growing industry,” President Spencer Nevins. “Increasing the beer tax will hurt each and every retailer, distributor, brewery and brewpub in Michigan.”