Tax cut for alcohol could lead to more drinking deaths, researcher says
WASHINGTON _ Tax cuts for alcohol producers in the Senate's tax code overhaul could result in around 2,000 more alcohol-related deaths each year, according to a researcher at the Urban-Brookings Tax Policy Center.
The tax bill, which the Senate could vote on later this week, would provide a $4.2 billion tax break over two years for the makers of beer, wine and spirits. While lawmakers have framed the change as a benefit for smaller producers of craft beverages, large global conglomerates that dominate the industry would likely enjoy the bulk of the savings.
"The industry now supports about 15,000 jobs. Sixty-one new breweries have opened just last year alone in Ohio," Sen. Rob Portman said at the Finance Committee's markup of the tax proposal earlier this month. "This legislation is only going to promote the expansion and the jobs that come with these entrepreneurial small businesses."
Health researchers who study the role that taxes play in reducing alcohol consumption fear that a tax cut could lead to more drinking. That could result in more illnesses and deaths associated with excessive alcohol use.
Adam Looney, a senior fellow for economic studies at Urban-Brookings, crunched the numbers and estimated that the industrywide 16 percent tax cut would result in between 281 and 659 traffic-related deaths per year, and about 1,550 deaths from diseases related to alcohol consumption. Those estimates were based on previous studies that found increases in the tax to have the reverse effect on crashes and health outcomes.
_ CQ-Roll Call
