Make public safety
top consideration in new liquor law
MORE THAN HALFWAY through the legislative session, lawmakers
finally are getting to work doing what the voters told them to do
last November — changing the law that forces bartenders in South
Carolina to serve the strongest drinks in the nation.
The legislation, designed to carry out the desires of voters who
approved eliminating the state’s minibottle mandate by an
overwhelming 59 percent, should help chip away at our nation-leading
alcohol-death rate on the highways. Considering that, such details
as who can sell liquor to bars and how that liquor is taxed are far
less important than simply making the change.
But as long as we have to deal with the mechanics, we ought to
make the best and smartest changes possible. And while a proposal
approved Wednesday by a House subcommittee seems to do that, a bill
awaiting Senate action doesn’t, on either contentious issue.
The biggest problem is with the way the Senate Finance Committee
proposes to make sure the state doesn’t lose money when most bars
stop serving from minibottles. The panel wants simply to increase
the tax that individuals and businesses pay for a regular-sized
bottle of liquor, from $1.42 a liter to $1.98.
It certainly sounds reasonable to charge everybody the same tax
for the same amount of liquor. But it’s not.
Because minibottles are taxed at a rate equal to $6.42 a liter,
the result will be that taxes will go down on the liquor people
drink in a bar, and taxes will go up on the liquor people drink at
home. That means that once the bill passes, the state will charge
lower taxes than it currently does to people who are more likely to
get in their cars and drive home after drinking; and the state will
charge higher taxes than it currently does to people who are more
likely to climb the stairs and go to bed after drinking. That’s
backwards.
Supporters say this plan is easier to administer and less
susceptible to cheating than the alternative, put forward by the
Senate Judiciary Committee and by a special House subcommittee, to
leave the tax at liquor stores alone and charge a 5 percent cocktail
fee on drinks sold in bars and restaurants. Perhaps there is some
marginal advantage to reducing the number of transactions that must
be taxed, but the state somehow manages to collect a sales tax at
the cash register on groceries, clothing and nearly every other
consumer purchase, rather than taxing the wholesalers from which
stores purchase these products. There’s no reason we couldn’t
collect taxes on liquor the same way.
The other problem with the bill before the Senate is that it
requires bars and restaurants to keep buying liquor from 58 special
dealers. The only justification we’ve heard for this is that the
dealers might go out of business if the state allowed bars to buy
liquor directly from the wholesalers who sell it to them. But that’s
simply the free market working as it should, and not a reason to
perpetuate a government-mandated monopoly.
The main reason the stiff-drink mandate has stayed in place as
long as it has is that these 58 businesses have convinced their
friends in the Legislature to protect their interests by maintaining
it. Now, senators appear poised to make sure the state continues to
prop up those businesses, while at the same time establishing a new
liquor tax system that puts simplicity ahead of public safety. It
seems obvious, but apparently it’s not: Public safety should be the
top
consideration. |