Alcohol and Taxes

Raising taxes is not a popular idea for most of us. But many people don’t realize that taxes on alcohol haven’t
kept pace even with inflation over the last 50 years. In fact, alcohol taxes are one of the only taxes that really
haven’t been raised at all since World War II – in spite of the growing costs of alcohol-related health and social
problems. Here are the facts:
• Federal beer and wine taxes have increased only once since 1991.
• Federal liquor taxes have increased twice, once in 1985 and again in 1991.
• Alcohol taxes have not been adjusted for inflation since 1991.
• In 2008, the federal government collected about $9.2 billion in alcohol excise taxes.
• Economic costs of alcohol use in this country are an estimated $185 billion per year for health care, law
enforcement, incarceration and lost productivity.
• Adjusting taxes for inflation since the last increase in 1991 would yield at least $15 billion over five years.

View a chart of current
Federal Alcohol Taxes and
State Alcohol Taxes.

Source:
Center for Science in the Public Interest