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

September 16, 2016Keith Gribbins

money beer
But this belongs to beer, not the government. It says so!

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.”

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Reader Interactions

Comments

  1. wtf_compilation says

    September 19, 2016 at 10:58 am

    RT @CraftBrewingBiz: Hey Michigan, Rep. Tom Hooker wants to nearly triple state beer excise taxes. #WTF? https://t.co/iinO6s1v0B https://t.…

    Log in to Reply
  2. Ohio_Digital says

    September 18, 2016 at 9:24 am

    RT @BrewStuds: Looks like you’ve had a burger or two, @RepHooker. Not our words. #beer #craftbeer #mibeer https://t.co/fdKNkjofBN

    Log in to Reply
  3. BrewStudNo1 says

    September 18, 2016 at 9:17 am

    RT @BrewStuds: Looks like you’ve had a burger or two, @RepHooker. Not our words. #beer #craftbeer #mibeer https://t.co/fdKNkjofBN

    Log in to Reply
  4. angry_beers says

    September 17, 2016 at 7:29 pm

    RT @BrewStuds: Looks like you’ve had a burger or two, @RepHooker. Not our words. #beer #craftbeer #mibeer https://t.co/fdKNkjofBN

    Log in to Reply
  5. RealMediaMedusa says

    September 17, 2016 at 7:29 pm

    RT @BrewStuds: Looks like you’ve had a burger or two, @RepHooker. Not our words. #beer #craftbeer #mibeer https://t.co/fdKNkjofBN

    Log in to Reply
  6. BrewStuds says

    September 17, 2016 at 7:25 pm

    Looks like you’ve had a burger or two, @RepHooker. Not our words. #beer #craftbeer #mibeer https://t.co/fdKNkjofBN

    Log in to Reply
  7. Kenny Ronald Graley says

    September 16, 2016 at 5:39 pm

    Bob Redman

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  8. DoctorBrew1 says

    September 16, 2016 at 1:17 pm

    @CraftBrewingBiz @MIBeerandWine Blame the monks. History proves beer was used since the water was so polluted and made many ill back then.

    Log in to Reply
  9. Mark L. Curtis says

    September 16, 2016 at 1:05 pm

    Got squashed mighty quick! The news of this circles throughout beer enthusiast groups in Michigan, word was spread, representatives called. Stick a fork in Rep. Hooker because this is done.

    http://www.detroitnews.com/story/news/local/michigan/2016/09/15/beer-tax/90416086/

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  10. BeerSommelier says

    September 16, 2016 at 1:03 pm

    Hey Michigan, Rep. Tom Hooker wants to nearly triple state beer excise taxes: We get that Michigan… https://t.co/y1aagxNdgJ #craftbeer

    Log in to Reply
  11. homemadebeer says

    September 16, 2016 at 12:53 pm

    Hey Michigan, Rep. Tom Hooker wants to nearly triple state beer excise taxes: “Increasing the beer tax will h… https://t.co/7nACWfwaBi

    Log in to Reply
  12. crsimp01 says

    September 16, 2016 at 12:47 pm

    Michigan Rep. Tom Hooker wants to nearly triple state beer excise taxes https://t.co/jpzzv0J3bN via @craftbrewingbiz

    Log in to Reply
  13. VicinityBrew says

    September 16, 2016 at 12:33 pm

    RT @CraftBrewingBiz: Hey Michigan, Rep. Tom Hooker wants to nearly triple state beer excise taxes. @MIBeerandWine https://t.co/Z59s6Wzetg

    Log in to Reply

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