EDITORIAL
In a time when jobs are scarce and money is tight, the last thing you'd expect a state to do would be to send more people to the unemployment lines. But that's exactly what has happened New Jersey, a state where 11,000 jobs have already been lost in the hospitality sector due to the recession. And, with the new tax increase on alcohol, that number will just go up. Local businesses could end up losing up to $60 million.
This may not seem like a big deal if you don't live in the Garden State. Wrong. Other governors in depressed states are looking for ways to increase taxes. And the hospitality industry is in their sights. A proposed 'sin tax' in Delaware would nearly double the tax on alcohol, and could cost the industry as much as $12 million in sales. In Massachusetts, increasing the tax on alcohol by over 6% could cost 3,000 people their jobs.
The idea that taxing alcohol will solve a state's financial problems is spreading, and there seems to be no end in sight. California is raising hotel taxes by 2% and eliminating exemptions on alcohol taxes. In some states, the cost for a case of beer has gone up by $10. Pretty soon, the only people who will be able to afford a drink will be the politicians.
Give me a break. Why is it always the alcohol industry that gets taxed when the chips are down? How is it that an industry that's got its own problems with the recession is expected to pick up the slack for the rest of the state? The only thing that can come from a tax hike is just what everybody fears the most, and what these politicians say they want to prevent - more job losses.
It is almost impossible to overestimate the impact this budget will have on America's hospitality sector. This tax hike will damage the already shaky incomes of bars, restaurants, and hotels throughout the country. It will make it that much harder for these places to remain open, and for bartenders and other on-premise workers to earn a living. The job losses and business closings in the alcohol industry won't exactly help out the rest of the country, either.
Why should hardworking bartenders shoulder the burden of the whole country? How much further can this go? Bartenders work long hours in a demanding job. The last thing they need is to be taxed for the right to serve alcohol. What's next, a tax on barstools?
If you're in a state that's already passed one of these ridiculous taxes, the best you can hope for is the loyalty of your customers. If your state hasn't dumped this tax on you yet - watch out. You may be next.
Bartenders be warned: When the going gets tough, the politicians get taxing.
Jaclyn W. Foley
Publisher/Editor of BARTENDER Magazine
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