Beer Tax

There is a possibility of the state of Minnesota raising the taxes on alcohol and I'm okay with that.  It is an effort by the Democrat led state government to help balance the budget, something you would think most would be in favor of.  When anyone hears the term 'tax hike' or 'tax increase' panic sets in.  No one likes to pay more for something they enjoy.  Hell, I get mad every once in a while when I fill up my Jeep because I know that about fifteen years ago, it cost about a dollar a gallon and not three fifty.  In the days of running the government on a deficit and credit, it would be nice to live in a state that is trying to get ahead of it's own debt and get back into the black.  By all accounts, if the tax hike were to go through, it could raise the cost of beer about two dollars a case.  Buying a pint at the bar would cost an extra seven cents.  At least that is the line that is coming out of the Capitol.

On the other hand, the state brewers and liquor lobby (yes, we have one of those!) are saying that the cost will be much higher to them and to the consumer.  Here's how it breaks down from the perspective of the brewers:   all brewers pay a tax of $4.60 for each barrel (thirty one gallons) of beer they make.  For one litre bottles of spirits and liquor, the makers are charged $1.33 tax.  Wine is also taxed, but varies based on alcohol content.  So the tax for each seems pretty low to me and that is how the brewers would like to keep it.  With the proposed tax hike, the beer brewers would pay $27.75 for each barrel of beer brewed (I couldn't find information on the new tax price for liquor or wine).  Instead of seeing a seven cent per pint and two dollar hike on a case, the brewers are estimating that it would be double that.  So, fourteen cents and four dollar respectively.    

Now this rate hasn't changed since 1987, so it would be a shock to the brewers to have to pay this new tax.  It all comes down to the bottom line for the brewers and how strong their lobby is.  Of course they want to keep the tax rate the same, it means that they have to pay less to sell their product.  If they pay less, they make more.  Business sense says why mess with something that works.  The problem is that everyone has to make sacrifices when it comes to the state wide budget.  This time, it's the brewers that might have to take the hit.  Yes, it is a huge jump going from five dollars to twenty eight, but with them paying so little for so long, it should be time to help out their state.  I think that if the proposed tax was about ten to fifteen dollars less you would see less push back from the brewers.  Both sides would win, the state is still getting more tax money and the brewers aren't getting taxed as much as first proposed.  

People aren't going to stop drinking just because the price goes up.  They might drink less in one sitting or they might go from buying a case of beer a week to a case of beer once every two weeks, but isn't that a good thing?  Isn't it a little bit healthier for us?  These proposed higher taxes aren't going to put brewers out of business, they just won't be making as much of a profit margin as they once were. 

Below is a quote from an article in the Star Tribune written by Baird Helgeson.

“I am against it, absolutely against it,” Joe Mangin, 85.  “The people who like to drink, we are being discriminated against.”

 This brings to mind when Wichita  was deciding on whether or not to go smokeless in bars.  Smokers were up in arms over having to go outside to kill their lungs and save mine.  The main argument was that they were being discriminated against because...well that's just it, there never was a good argument.  Just because a law has been passed or a tax is in the process of being enacted and it affects you and your vices does not mean the government is discriminating against you.  Not being able to drink from a certain water fountain or not being able to marry someone is the government discriminating against you.  Know the difference. 

Define 'local'

One of the best ways to drive the local economy is to buy locally.  Not only locally, but independent as well.  Finding a small coffee shop instead of going to Starbucks on your way to work.  Going to the bar on the corner instead of Buffalo Wild Wings to watch the game.  Who needs twenty televisions with twenty different games on when you only want to watch one?  Obviously these are the best way to drive local economies because it stays within the area.  However, my question is:  what is the definition of local economy?  You have the independent businesses, but what about the chain businesses that have their headquarters in your town? 

There is one liquor store that is close to us that for a while I thought was a fairly large chain.  I had seen several stores around the Twin Cities and just figured that they were all over the state.  So I started to look into it earlier this week because I saw their headquarters sitting in a restaurant in one of the suburbs around here.  Come to find out, they have just six locations, five of which are in the Twin Cities.  So it's a local business that is doing well enough to expand a little bit.  Good on them.  With that said, there are true local and independent liquor stores where we live, and I have gone there from time to time.  You should always feel good about yourself if you contribute like that.

So small chains are good, but what about the national chains?  Best Buy and Target are two companies that got their start in the Twin Cities.  Both of their headquarters are still here too.  I know you can't really define them as a local business and definitely not independent because they are all over the country and expanding.  Best Buy has stores across the country, Target is starting to expand north of the border.  But because they had their start here, can you consider buying product from them supporting the local economy?  On the basic definition, no you can't.  They are too big to be considered a local business.  Why not?  You buy a television from Best Buy, the person selling it to you probably lives in the area.  The store starts to make money and they need to hire more people.  Where do they hire from?  The local area.  Local people make money.  And so on and so on down the line.

I know that the best thing to do is to buy at the local stores that are owned by people instead of corporations.  I can't help but feel though that if you buy from a big chain store that is in your neighborhood or town you are still helping out the local area and economy.  The money that you spend at a chain store may go to their corporate headquarters someplace else, but the more you spend at the local store, the more jobs you can help possibly create for that area.  

New slogan

I bought some Hamm's this week.  Because I can.  On the can, the following is printed:  'America's classic premium beer.  Born in the land of sky blue waters.' 

I have a new statement for Hamm's (it'll be at the end of the post, skip ahead if you don't care about the rest of this).  Now, don't get me wrong, I enjoy Hamm's.  I have discovered a cheap beer that not a lot of people know about or care enough about.  A few years ago (and I mean five years ago), it was Pabst Blue Ribbon.  Now, PBR is popular and the price is on the rise.  Always on the search for cheap, I was happy to see Hamm's appearing in local businesses a couple of years ago and although I will admit to not knowing much about it.  Upon further 'investigation' I found out a little bit about the brand, company, etc.  It's owned by the Miller brewing company now if anyone is interested. 

It makes me a little sad seeing these older beers that have just been enveloped by larger corporations, but that is just business.  You look at beers like Hamm's, Stroh's, Schlitz, PBR, they all started out as independent beer companies only to be taken in (as it were) by larger companies just because it was the only way to stay around.  And that is part of business.  You can't remain a small business.  You won't be able to make money.  It is just easier to make a name for yourself, gain a reliable and faithful fan base and sell out.  That sounds horrible, but that is the way of the world.  Part of the economic world.  In the end, it is the great big dollar that rotates the world.  

On a side note, this was just meant to be a funny, quick, I'm a little drunk, let's write about beer kind of post.  Apparently, there is a little more on my mind.  After all of this, I will leave you with what I thought should be the new slogan for Hamm's beer.  I thought of this because a thirty pack of Hamm's is a few dollars cheaper than Busch, I noticed when I bought it.  Enjoy.  

Hamm's:  So cheap, it makes Busch Light look expensive.

Michigan, the economy, and sports

For all the bad that has happened to Michigan, and Detroit specifically, since the down turn in the economy there has been one bright light for the state.  Sports.  Not all sports though.  The Lions, for example, were horrid.  But they did get a supposed savior this year in Matthew Stafford (let's hope he pans out).  

Sports won't bring jobs.  Sports won't put food on the table.  Sports won't better your life.  What sports will do, however, is raise your spirits if only for a little bit.  Sports will allow you to forget your worries and the harsh reality in the fact that the state is in trouble financially.  One thing that I thought I would never see is the auto industry get into trouble, but it happened and Detroit is just going to have to recover as best it can.  The stock market and the economy are both slowly starting to turn around.  It is time for people to make the best of a bad situation and wait.  

Sports teams in the state of Michigan have been doing well this year.  The WNBA team, the Detroit Shock, won another title last year.  They are coached by legendary Bad Boy, Bill Laimbeer.  The Wings are one win away from another Stanley Cup.  The Tigers are playing well a quarter of the way through the season (they are in first place in the Central Division).  The Pistons made it too the playoffs, although they were disposed of rather quickly by Cleveland.  The Michigan State Spartans made it all the way to the final game of the NCAA men's basketball tournament before losing to UNC.  

I know that when Detroit teams are on national television, the commentators bring up the trouble that Detroit has run into.  A lot.  What I don't know is if the players on all these teams think about the situation.  I am sure it is hard to think about other people's problems when they make millions of dollars a year, but if they do and try to win one for the city, that is great.  I listened to an interview with Jim Leyland (manager of the Detroit Tigers) recently, and a question was asked about the team and wether or not they are aware of the situation in the city.  Now I am paraphrasing here, but Leyland basically said that the players are aware of the problems the city and the state are having and they are playing this season for them (the city and state).  They want people to come to Comerica Park and forget about their situation, if only for a couple of hours.  If the Detroit Tigers are playing every game this year with the thought of helping people forget about the shit storm that is the everyday economy, I am more on board than ever.  

The night is darkest just before the dawn Michigan.