Md. Politicians Support 'Dime-a-Drink' Alcohol Tax Increase

Over 140 candidates seeking election to Maryland's 188-seat General Assembly have endorsed an alcohol tax hike, the Gazette reported Sept. 9.

A recent opinion poll showed that 71 percent of Maryland registered voters also support raising alcohol taxes, if the money was spent on health priorities.

The state has not raised taxes on spirits since the 1950s — or on beer and wine since the 1970s — and its alcohol taxes are among the lowest in the nation.

The proposal, brought by the Maryland Citizens' Health Initiative, would raise prices on beer, wine, and spirits by about ten cents per drink. The group estimated that the increase would bring in $214 million in revenue and avoid $249 million in health care costs connected with problem drinking.

The revenue would be earmarked for substance abuse treatment and prevention, mental health services, health care for childless adults, and developmental disabilities. 

The estimates are based on a report (PDF) from the Johns Hopkins Bloomberg School of Public Health that found that “alcohol excise tax increases save lives, reduce health care costs, create and preserve jobs, and prevent alcohol-related problems.”

The proposal is endorsed by organizations such as Mothers Against Drunk Driving, AARP, and the Mental Health Association of Maryland.

Opponents said they object to raising taxes in a poor economic climate, to the size of the increase, and to earmarking the potential tax revenue for specific purposes.