[Congressional Record (Bound Edition), Volume 149 (2003), Part 10]
[Extensions of Remarks]
[Page 13178]
[From the U.S. Government Publishing Office, www.gpo.gov]




            INTRODUCTION OF THE ALCOHOL TAX EQUALIZATION ACT

                                 ______
                                 

                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                         Thursday, May 22, 2003

  Ms. NORTON. Mr. Speaker, as Congress adjourns for Memorial Day, I am 
introducing the Alcohol Tax Equalization Act because of my special 
concern that beer and wine will take a high toll in human life and 
injury, especially among teens and other young people this very 
weekend, because these alcoholic beverages are less costly than they 
should be. Congress is complicit in this carnage by winking at beer and 
wine through the Tax Code. We have just renewed vigilance for seat 
buckling because of growing concern about teen deaths due to driving 
mishaps. It's time we also focused on alcohol abuse, a much greater 
cause of traffic deaths among teens and young people.
  The Memorial Day holiday often begins a season of tragedies resulting 
from alcohol abuse, particularly beer and wine. In an effort to reduce 
alcohol-related fatalities, my bill would require that beer and wine be 
taxed according to their alcohol content, as is hard liquor. Alcohol 
abuse is the leading cause of death among teens and young adults. The 
need to provide appropriate disincentives is urgent.
  The bill creates a substance abuse prevention trust fund for alcohol 
prevention programs. The kinds of programs that work best include 
cross-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 high-risk 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.
  It is impossible to explain today why a can of beer, a 5-ounce glass 
of wine, and a shot of hard liquor, all of which have the same alcohol 
content, should not be taxed equally. However, the beer and wine 
industries want it that way. Expect them to fight to preserve the 
enormous tax break they enjoy compared to their competitors in the 
distilled liquor industry.
  Beer and wine have long replaced hard liquor in alcohol consumption 
and sales, but tax policy is still lost somewhere in the 1940s. Hard 
liquor is far behind beer and wine in consumption and sales. More than 
half of all alcohol sold today is beer, much of it to teens and college 
students; 15 percent of alcohol sales is wine. America, especially 
young America, is getting drunk on beer and wine, in no small part 
because badly outdated taxing policy make beer and wine cheap. If a can 
of beer, a 5 ounce glass of wine, a wine cooler, and a shot of vodka 
have the same alcohol content, they should be taxed equally. The 
resulting transfer of tax burdens to others at a time of dangerous 
deficits is particularly untenable in the case of alcohol and calls for 
attention of this inequity now.
  In 1997, the Senate Finance Committee proposed substantially raising 
taxes on cigarettes to discourage teenage smoking. Many states have 
done just that. The very same reasoning should apply 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 is sending the message to teens that these 
drinks are okay 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.
  Throughout the country, 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 bill I introduce 
today will take the District of Columbia and the entire country closer 
to the national goal of significantly reducing alcohol-related 
fatalities.

                          ____________________