The new Governor has been in office only a few days and the Marin Institute is already asking Jerry Brown to raise the excise tax on alcohol 25 cents per drink to help close California’s budget shortfall. Here are a few details from the press release:

“A simple 25 cents per drink increase would generate $3.5 billion in revenue for the general fund, said Bruce Lee Livingston, Marin Institute’s executive director. “It’s common sense, fiscally responsible, and long overdue.”

The last alcohol tax increase in California was in 1992 and just a penny per glass of wine and two cents per can of beer and shot of spirits. Since then, rising inflation has led to a 33 percent decrease in state alcohol tax revenue. Moreover, Marin Institute estimates state and local government costs for alcohol-related problems to be $8 billion annually, including healthcare and criminal justice expenses, adding to the state’s economic woes.

Tagged on: