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CHARGE FOR HARM
Big Alcohol produces, sells, and promotes products that cause harm and incur costs - to both government and its citizens. Appropriately taxing alcohol at state and federal levels will help reduce related harm and provide needed funds. We support state and federal increases in alcohol taxes and fees.

Neglected and Outdated State Beer Taxes - Erosion Due to Inflation

Because beer tax rates are not indexed to inflation, their real value drops over time. In other words, excise tax revenues essentially decline each year. This map shows how much inflation has diminished the value of each state's beer tax since the year it was last raised. The erosion of each state's beer tax rate was calculated as the percent change between the excise tax rate and its real value, when deflated from 2008 back to the year it was last raised. For instance, this map shows that California's beer tax rate of 20 cents per gallon has lost 37 percent of its value since it was last raised in 1991. The solution, of course, is to raise the beer tax, and index it to inflation to protect against future losses. To view a map that displays the number of years since your state's last increase, click here. Also see this table that lists all the data as well as current beer tax rates.

erosion map
iconNo Beer Tax Erosion
iconBeer Tax Erosion = Less Than 25%
iconBeer Tax Erosion = 25% to 50%
iconBeer Tax Erosion = 50% to 75%
iconBeer Tax Erosion = More Than 75%

 

References

  1. Year of last increase, as of 2009.
  2. Excise tax rates were deflated using annual CPI data through 2008, the most recent year for which annual inflation data were available. U.S. Bureau of Statistics CPI, U.S. city average, all items, Base Period: 1982-84=100.
  3. State beer excise tax rates and historical changes were obtained from the Brewer's Almanac and Adams Beer Handbook.