The Daily Parker

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More beer taxes?

There are apparently proposals out there to make beer drinkers sad:

In Congress, the Senate Finance Committee has raised the possibility of a 150% increase in the federal tax on beer to help pay for health care reform. And about three dozen states, including Illinois, have called for alcohol tax hikes to offset budget shortfalls.

The federal government hasn't raised the beer tax in nearly 20 years, but legislators are considering increasing it to the same level as spirits. An equalization of alcohol taxes would be a huge problem for brewing giants such as MillerCoors LLC, which will move its headquarters to Chicago this summer. The tax hikes would raise prices and drive many customers to buy cheaper brands or switch to spirits, beer industry insiders say.

But wait! Turns out, MillerCoors is wrong: the tax increase wouldn't lead people to cheaper beers (as if such existed), it might actually lead people to better beers:

Small brewers would be exempt from the taxes, giving the fast-growing microbrew segment another boost against giants like MillerCoors.

The [Center for Science in the Public Interest, a Washington, D.C.-based advocacy group] estimates most people would pay little extra if taxes were increased on alcohol because 20% of drinkers consume 85% of the alcohol in the U.S.

In marginally-related news, hoppy beer in San Diego is booming:

A dizzying variety of small breweries are lapping away at the dominance that mild, light-colored lagers have enjoyed since Prohibition, and some of the best-regarded are in North County, short on history and long on the bitter herbs known as hops.

... North County breweries have racked up their share of accolades. The Brewers Association named Port Brewing as the nation's best small brewing company for 2007. The association named Alesmith Brewing Co., in San Diego's Miramar neighborhood, as the best small brewery last year. Beer Advocate magazine called Stone the "best brewery on earth" in December and rated five Stone beers among its top 25. Food & Wine Magazine's June issue dubs Highway 78 a "near-mystical" route for visiting breweries.

So, it the beer tax doesn't seem that bad, especially in Southern California.

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