Health care groups still lobbying for hike in MD alcohol tax

By Emily Mullin, Staff
July 19, 2010

Health care and labor groups continue to push a proposal that would raise the state alcohol tax by a dime for every drink.

The money raised by the tax would expand state Medicaid coverage, provide services for people with developmental disabilities and mental health needs and offer alcohol and drug prevention and treatment programs.

A coalition that includes AARP Maryland, Maryland Assembly of Family Physicians, Maryland Nurses Association, Maryland Citizen’s Health Initiative, American Academy of Pediatrics, Maryland Chapter of the National Association of Social Workers and Maryland NAACP have signed on in support of the proposal.

The proposal was submitted Monday to candidates seeking seats in the General Assembly, urging them to endorse the tax.

The drink tax would seek to fill some gaps in the federal health care reform law by expanding Medicare coverage to childless adults in Maryland who earn below $12,563 annually.

The coalition estimates that raising the state’s alcohol tax by a dime a drink will reduce state health care costs by $249 million.

Maryland's alcohol tax is the second lowest in the nation and has not been raised since 1972 for beer and wine and 1955 for spirits.

The proposal would raise the tax of beer from $0.09 to $1.16 per gallon. The tax on wine would increase from $0.40 to $2.96 per gallon, and the tax on spirits would be raised from $1.50 per gallon to $10.03 per gallon.

"These are big jumps because our tax is so low right now," said Vincent DeMarco, president of the Maryland Citizens' Health Initiative, in an interview Monday.

For consumers, a dime a drink translates to an extra $0.60 for a six-pack of beer, $0.59 for a bottle of wine and $2.25 for a bottle of liquor.