[Congressional Record Volume 143, Number 90 (Tuesday, June 24, 1997)]
[Extensions of Remarks]
[Pages E1306-E1307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF THE ALCOHOL TAX EQUALIZATION ACT OF 1997

                                 ______
                                 

                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                         Tuesday, June 24, 1997

  Ms. NORTON. Mr. Speaker, Congress will adjourn for recess at the end 
of this week. By the time we return on July 10, beer and wine will have 
taken a toll in human life and injury, especially among teens and other 
young people, because these alcoholic beverages are less costly and 
have become a virtual part of the holiday itself. By blinking at beer 
and wine through the Tax Code, Congress will be actively complicit in 
this carnage.
  That is why today I introduce the Alcohol Tax Equalization Act of 
1997, a bill that would increase the taxes on beer and wine so that 
they are taxed according to their alcohol content at the same level as 
hard liquor. The bill creates a substance abuse prevention trust fund 
for alcohol prevention programs. The kinds of programs that work 
include cross-

[[Page E1307]]

peer mentoring by high school students about alcohol and drug abuse and 
traffic safety; teen courts to decide appropriate penalties for other 
teens who abuse alcohol; community-based prevention programs for 
pregnant women and highrisk populations; and 100 percent drug and 
alcohol-free clubs. The programs would be implemented through grants 
from the National Highway Traffic Safety Administration and the 
Substance Abuse and Mental Health Services Administration.
  Ask Congress to explain why a can of beer, a 5-ounce glass of wine, 
and a shot of hard liquor which have the same alcohol content, are not 
taxed equally. The answer is plain--the beer and wine industries want 
it that way. Expect them to fight to preserve the enormous tax break 
they enjoy compared to their counterparts in the distilled liquor 
industry.
  The Senate Finance Committee has just proposed substantially raising 
the taxes on cigarettes to discourage teenage smoking. The very same 
reasoning applies to beer and wine. Minors consume more than 1 billion 
beers each year. Teens are price sensitive because they have less 
disposable income. By taxing beer and wine substantially less than 
liquor, we bring the price down and encourage teens to make these the 
drinks of choice.
  Because the Federal excise taxes on liquor are substantially higher 
than taxes on beer, Congress in sending the message to teens that these 
drinks are OK and are not as dangerous and addictive. Congress 
therefore bears a heavy part of the responsibility for the fact that 
alcohol abuse is the leading cause of death among teenagers and young 
adults.
  Here in the District where there are so many low income and teen 
drinkers, taxing beer and wine fairly would be an important step in 
reducing alcohol-related traffic fatalities, accidents and disease. The 
need here is urgent. The District of Columbia death rate from alcohol 
is almost three times the rate in Maryland and Virginia--14.4 in the 
District, compared with 5.8 in Maryland, and 5.7 in Virginia (1994). I 
am pleased that the District is 1 of 39 States that has enacted 
impaired driving legislation. The bill I introduce today will take, 
District of Columbia and the entire country closer to the national goal 
of reducing alcohol-related fatalities to no more than 11,000 by 2005.
  Beer is what America, and especially young, the America, drinks. In 
1995, 60.3 percent of all alcohol sold was beer and 11.4 percent was 
wine. Only 28.4 percent was hard liquor. America is getting drunk on 
beer and wine. It is time for the taxes on beer and wine to reflect 
their alcohol content. A can of beer, a 5 ounce glass of wine, a wine 
cooler, and a shot of vodka are the same thing.
  In America today, parents rarely give permission to teens to drink, 
but Congress does. It is time we withdrew that permission. This bill 
does just that.

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