Wednesday, May 20, 2009

Massachusetts: Let's Tax the Liquor Tax

Massachusetts currently imposes an excise tax on liquor sales of $4.05/gallon for spirits between 15% and 50% alcohol. Every 750ml bottle of 80 proof liquor (vodka, gin, whiskey, rum, etc.) sold in Massachusetts already has a 81-cent tax built into the sale price.

If Governor Patrick signs the sales tax bill into law, liquor sales in stores would no longer be exempt from the state sales tax, meaning that the state would be collecting a nickel ($0.81 x 6.25%) for the sales tax on the excise tax on every bottle of liquor sold.

Follow-up question: How long will it be until they decide to follow Maine's example and stick a 10-cent 15-cent [thanks, Shel] deposit tax on every beverage container liquor bottle sold in the state.

The triple-taxing of consumer goods - it's for the children.