America Is Still Drowning In The Bottle

Americans are still drowning in the bottle to this day.  While the pandemic and especially the lockdowns were gasoline on the fire, that fire has been burning for a very long time before that.  The ageist abomination that is 21 drinking age, and all of its illiberal ancillary laws, has clearly done NOTHING to stem that tide in the long run.  And it's truly no coincidence that alcohol (of all types, but especially hard liquor) is now the cheapest it has been in many, many decades relative to inflation and (especially) income.  That's largely because alcohol taxes have greatly lagged behind and were thus eroded by inflation in recent decades, with the tax on distilled spirits lagging the most of all.

Thus, as Twenty-One Debunked has long advocated, we need to raise the alcohol taxes across the board, and harmonize them all based on alcohol content.  To raise just the beer tax alone, for example, would result in drinkers simply switching to liquor, similar to how minimum unit pricing in Scotland disproportionately affected strong cider and perversely incentivized switching to liquor.  MADD has long heavily beaten the drum (though not so much recently) for raising the beer tax, but has also largely been strangely silent on the distilled spirits tax.  Perhaps some alleged palm-greasing from both the liquor industry and/or foreign beer industry may be at work here?  Things that (should) make you go, hmmmm.....

We advocate raising all federal alcohol taxes to about $30 per proof-gallon, equal to the inflation-adjusted value for the distilled spirits tax in 1991, the last time it was raised. That would add anywhere between one and two dollars (depending on alcohol content), to the price of a six-pack of beer, a gallon of wine, or a fifth of liquor, while also incentivizing reduced-alcohol beers and wines.  And while that may not be very much of a difference to a moderate drinker, for heavy drinkers it sure adds up, as it also does for the youngest drinkers as well.  And contrary to what some believe, the price elasticity of demand for alcohol is NOT zero or trivial, and the public health benefits of higher alcohol taxes and prices are well-known and established.

To sweeten the deal, we support a relatively reduced tax rate for the smallest producers, and we also support tax incentives for producers who fortify their beverages with thiamine (vitamin B1) and perhaps other vitamins as well.  And we would also support phasing in alcohol tax hikes a bit more gradually if that is the only way to get them passed.  But raise these taxes, we must.

(And, of course, we also also lower the drinking age to 18 yesterday, full stop.  We are still Twenty-One Debunked, after all.)

It is true that Thomas Jefferson once famously said, "no nation is drunken where wine is cheap".  Granted.  But the second half of that very same quote was, "and none sober when the dearness [expensiveness] of wine substitutes ardent [distilled] spirits as the common beverage.  It is, in truth, the only antidote to the bane of whiskey."  And now in 2024, it would seem that ALL categories of alcoholic beverages are too cheap for America's own good, and a fortiori for ardent (distilled) spirits today.