When the people of Massachusetts vote for governor in the general election next month, they will also vote on a series of ballot questions, the first of which would repeal the state tax on alcoholic beverages. The tax on beer, wine and liquor is set at 6.25 percent, and was only imposed last year. However, rescinding the tax at this point would be a mistake as it provides a valuable source of state income that goes toward worthy causes.
The only goods that are exempt from sales tax in Mass. are necessary items such as food, clothing and prescription medications. All unnecessary, luxury products are subject to taxes, and alcohol should be given no exemption. In fact, if anything should be taxed it should be harmful goods such as alcohol and cigarettes.
Additionally, the revenue generated from the alcohol tax is used as a source of funding for substance abuse programs and behavioral health services. Using the tax money for treatment programs is a responsible way of handling the alcohol taxes and a cause worthy of taxpayer money.
Many involved in the liquor business claim that the tax will stifle sales, causing potential buyers to cross the border into New Hampshire to purchase their alcohol tax-free. But in reality, since the tax has been instated, alcohol sales have not fallen, but have actually risen by about one percent, according to the Department of Revenue. Additionally, the fear of customers defecting to New Hampshire is only a real concern along the state border, and one that has not had a negative effect on alcohol sales in Mass. If Prohibition didn’t stop people from drinking alcohol, then something as minor as a sales tax certainly won’t curtail sales.
Some college students may be tempted to vote yes on Question 1, supporting a repeal of the tax in the hope that they will be able to buy slightly cheaper beer. But any immediate benefit will come at the price of a hole in the state budget that could easily be filled. The vast majority of states with sales taxes put a tax on alcohol. As an unnecessary luxury good, it only makes sense that alcohol should be taxed just like most other products. Voters should choose “no” on Question 1, rather than causing an unnecessary hole in the budget that would immediately affect substance abuse programs.
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