Michigan's High Beer, Wine Tax Hurts Jobs, Consumers

Beer and Wine Excise Taxes Hurt Lower and Middle-Income Americans.

Taxes on beer account for over 40 percent of the total retail price.  Approximmately 50 percent of all beer purchased in the U.S. is bought by consumers wiht household incomes of $50,000 per year or less.  The impact of excise taxes is 6.5 times greater on households in the lowest income brackets than on those wiht higher incomes. 

Raising Excise Taxes Will Kill Michigan Jobs.

According to a recent study by the national Beer Institute, Michigan's beer industry - from producers and the family-owned distributors to the the retailers, restaurants and other local businesses - provided jobs for more than 60,000 people in 2008.  Michigan's beer industry also generates more than $200 million in taxes.

Michigan's Excise Taxes are the Highest in the Region.

Because Michigan's excise taxes are already the highest in the region, Michigan businesses are at a disadvantage with other neighboring states. We lose businesses, jobs and even revenue to Ohio, Indiana and Wisconsin.  Michigan's excise tax on beer is 300% higher than neighboring Wisconsin.  Raising the tax will only provide incentive for individuals to purchase beer and wine in our neighbor states.

The Michigan Liquor Control Commission has recently warned that smugglers who buy cheaper alcohol in other states rob Michigan taxpayers of millions of much-needed dollars every year - money that pays for critical public services, such as schools and public safety.  Raising the beer tax will only worsen the smuggling problem, rob Michigan families of even more tax dollars and hurt Michigan businesses.