Publication Date: May 2009
Publisher: National Institute on Money in State Politics (U.S.)
Author(s): Peter Quist
Research Area: Banking and finance; Politics
How are states coping with the budget woes prevalent today? A common solution has been to raise taxes to help cover the shortfalls. Frequently, some of the first taxes to face a potential increase involve so-called "sin taxes." The current recession is proving to be no exception to this trend -- many states around the country are considering plans to raise taxes on alcohol to help balance their budgets. Businesses in the alcohol trade are responding with familiar "old school" tactics, contributing millions of dollars to state political campaigns all over the country.