Excise Tax: Not a Four-Letter Word

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The Texas Legislature is spending the next few months grappling with a massive budget and considering thousands of pieces of legislation.

Technically, their only job is to balance our state’s multi-billion-dollar budget. (Considering thousands of pieces of legislation is “extra.”) And despite a surplus this year, many battles will be waged in Austin about where and how to cut or raise spending.

From property taxes to an increase in gas taxes, there are countless ways the state can raise money – but few of them can also claim to save the lives of Texans.

Raising the state’s alcohol excise tax can do both. The excise tax is a tax on alcohol sales that historically existed to raise revenue for public purposes and to reduce alcohol consumption and its related public health harms.

Alcohol excise taxes in Texas haven’t budged in nearly 35 years; they aren’t tied to inflation or population, so they don’t rise as inflation and population grow. As a result, they have lost more than half of their value and are considered a poorly performing revenue source for Texas – if they’re even considered at all.

However, the price of alcohol is a powerful determinant in how and how much young people drink. Increasing alcohol excise taxes is one of the single biggest steps we can take to prevent underage and risky alcohol consumption, as well as its associated consequences.

Studies show that increasing alcohol excise taxes by as little as a dime a drink would save hundreds of lives, prevent thousands of young people from binge drinking, and generate more than $700 million for Texas every year. (That would equal $1.4 billion for the current biennial budget the Legislature is balancing.)

Furthermore, 25% of alcohol excise tax revenue automatically goes toward education. Just a dime a drink increase would mean an additional $177 million for public education every year. It also means we could help provide funding many Texas schools need without having to rely as heavily on local property taxes to fill education funding gaps.

What’s even more good news is that 65% of Texans support increasing the alcohol excise tax to improve public education and safety in our state. Our Legislature can play a role in reducing underage drinking and its related problems while raising millions for Texas.

We’re asking the Legislature to consider an increase in alcohol excise taxes while they are in session, and we’ll be using our Advocacy Day as a critical platform for talking to lawmakers about the benefits of raising the excise tax in Texas.

If you haven’t signed up for Advocacy Day yet, please register today so you can join us in Austin on February 19! You’ll be able to receive training and educate lawmakers on the issues we’re tackling to help us build safe, drug-free communities for generations to come.

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