A study recently published in Addiction indicates that raising taxes on beer, wine, and liquor may decrease rates of binge drinking among adults. Binge drinking is considered five or more drinks for a man or four or more for a woman on any one occasion.
By comparing alcohol tax data for all 50 states with data from the Behavior Risk Factor Surveillance System surveys between 2000 and 2010, researchers with the Boston University School of Public Health found that a 1% increase in prices due to taxes equated to a 1.4% decline in binge drinking. The researchers also speculated that additional studies could draw a stronger connection between higher taxes and lower rates of drunk driving and alcohol-related violence.
Many U.S. states have upped taxes on alcohol in recent years. According to the Tax Policy Center, the median alcohol tax per gallon in the U.S. is $0.20 for beer, $0.72 for wine, and $3.75 for spirits. Of the three categories, taxes for spirits vary the most widely. For example, Virginia’s excise tax per gallon of liquor is $19.19, compared to just $1.87 in neighboring West Virginia.
Opponents of alcohol excise taxes often refer to them as a “sin tax” and argue higher prices place a heavier burden on responsible drinkers. Critics also note that studies like this one show a correlation rather than a direct cause-and-effect link between taxes and alcohol consumption. There is also conflicting opinions about whether higher prices influence the choices of hardcore and underage drinkers—two groups that are prone to binge drinking.
However, binge drinking is blamed for more than 45,000 alcohol-related deaths in the U.S. last year, and the CDC estimates that 1 in 6 adults binge drink. Supporters of higher alcohol taxes argue that it is worth trying any measure that could bring down those numbers. What do you think?
