Study Suggests Alcohol Tax Would Decrease Excessive Drinking - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Study Suggests Alcohol Tax Would Decrease Excessive Drinking

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REHOBOTH BEACH, Del. - A study conducted by the Center on Alcohol Marketing and Youth in Baltimore in conjunction with the University of Illinois at Chicago suggests incorporating an alcohol tax would reduce excessive consumption.

The study said this is because consumers simply won't shell out the extra money. It explains that "when products become more expensive, people tend to purchase less of them, and this same basic principle holds true for alcohol as well."

Dale Lomas, owner of Atlantic Liquors in Rehoboth Beach said he thinks people will still make their alcohol purchases.

"I think that if they put a huge tax on it which would be absurd that might do it but I don't think a small increase of taxes would affect alcohol consumption one way or the other," he said.

Researchers also said that increasing the alcohol tax would increase the number of job opportunities because money not spent on alcohol would be spent on other products, therefore offsetting the economic loss.

A hypothetical calculator on the research group's website, camy.org, shows in Delaware, 804 jobs could be created with only a .05 cent per drink increase. Lomas, however, said he thinks in Delaware that isn't possible.

"If you do increase taxes we have a lot of tourism here and people come to the beach and buy their alcohol here," he explained. "So if we increase our taxes and it stabilizes the prices throughout the area then maybe they wont buy the product in delaware."

This study is being released at the American Public Health Association's 142nd annual meeting in New Orleans this week.
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