The next time beer lovers purchase their favorite brew, they may be paying a little more if one nonprofit organization has its way.
The National Academy of Sciences recently proposed an increase in excise tax on alcohol, more specifically beer, as a way to curb underage drinking. In the report, released last week, raising the cost of beer and alcoholic products will effectively reduce alcohol consumption by minors. Advertising paid for by revenue generated by the tax could also reduce underage alcohol consumption.
Research conducted by the academy has found that underage drinking costs taxpayers $53 billion a year in court costs. Alcohol-related traffic accidents caused by minors also cost $19 billion a year, prompting the academy to call for the increased tax.
The proposal, still in its planning stages, is slated to go before legislation next year and if passed could take effect as early as 2005.
The report does not state how much the proposed tax increase is.
According to its Web site, the National Academy of Sciences is a private, nonprofit society of scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology for the public's welfare.
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The report also blames the media industry for glorifying alcohol to minors and calls for the creation of an impartial foundation funded by the country's alcohol industry to monitor what the report calls an "absurd increase in underage drinking."
The federal excise tax on beer is currently 33 cents per six-pack, according to the Beer Institute's Web site.
The Beer Institute is the national trade association for the malt beverage industry.
There has been a nationwide response from nonprofit organizations such as Mothers Against Drunk Driving to the report and its proposed steps to end underage drinking, according to the academy's Web site.
"MADD supports the tax and feels that it is a means for recovering the cost to society caused by the misuse of alcohol," said Terry Huertaz, MADD New Mexico executive director. "It's also a way to support alcohol prevention programs."
Linda Atkinson, director of Albuquerque's DWI Resource Center said she agreed the proposal is a good idea.
"We think it is something that seriously needs to be considered," Atkinson said. "The tax increase in 1991 cut underage drinking by 20 percent but we knew it was not raised enough and the issue needed to be revisited."
Federal alcohol taxes were last raised in 1991 when the excise tax was doubled, resulting in a 9 percent drop in beer sales, according to a study conducted by the DWI Resource Center.
Many local business owners said they support the tax and don't feel it will interfere with their business should the proposal be carried into legislation and passed into law.
Tony Torte, manager of Kelly's Brewery, said the increase in alcohol tax, should it happen, shouldn't effect business too much.
"It could possibly hurt business in a very small way, but if it will deter teenagers from drinking, then it's definitely a good thing," Torte said.
